As of April 30th 2018, Ontario landlords must use a new 13-page standard lease agreement. It’s meant to protect tenants and renters from unfair and expensive rental practices in the province.
Tenancies entered into on April 30 or later are required to use the new standard lease. Previous lease agreements still stand as-is, but are subject to the Residential Tenancies Act of 2006. Any illegal lease clauses (such as “no pets”) are void, even if outlined and signed in an older lease.
➤ You can download the full Residential Tenancy Agreement (Standard Lease) here.
Why a Standard Lease?
There are about 1.25 million private rental tenancies in Ontario, with a monthly turnover of 19,000 units. That means every month there are 19,000 new agreements between tenants and landlords, many of whom might not know their rights or responsibilities.
If you’ve been following the news in Toronto or Ontario over the last few years, rental agreements and disputes have been a hot topic. CBC Toronto ran a groundbreaking series called No Fixed Address that drew attention to the serious dilemma of rising costs, poor practices, and unfair rental increases throughout the province.
The new standard lease is clear, concise, and outlines the rules of the Residential Tenancies Act (2006), making it easier for all parties involved.
It does limit some of the previous freedoms that landlords had, such as requiring damage deposits. I’m not entirely sure how these clauses will play out in the long term for landlords. But at the very least I think that increased clarity is a good thing.
What’s in the Standard Lease?
I do a section-by-section review of the standard lease below, with images of the lease for you to review.
In summary, though, it’s pretty straightforward: the lease outlines the rights and responsibilities of both tenants and landlords in a fixed agreement.
Some rules it includes:
- Landlords must produce a copy of the lease within 21 days if a tenant asks
- It doesn’t cover student residences, social or supportive housing, mobile home parks, commercial properties, or retirement / palliative care facilities.
- Pets are allowed, as are guests, smoking on the premises, and window coverings
- Landlords aren’t allowed to ask for a damage deposit, but may ask for a key deposit
- Rent is allowed to increase by 1.8% per year, with 90 days written notice. But the landlord can apply to increase this percentage for reasons like renovations, repairs, or increased taxes
- If a landlord needs to evict a tenant so that they or a family member can live in the unit, the tenant is entitled to another unit or one months’ rent.
- It takes a hearing to evict a tenant for almost every other reason
- Rent is considered late if not provided by the date it’s due. The tenant has about 14 days to pay rent or move out. If neither of these things happen, the landlord can apply to the LTB (Landlord and Tenant Board) for an eviction order and an order to back rent.
If you have specific questions about this lease, I’d love to chat. Message me and I’ll get back to you right away.
Here’s a full review of the lease, section-by-section, with explanations of each section
A Section-by-Section Review of the Standard Lease
There are 17 Sections to the agreement.
Sections 1, 2, and 3 outline the parties involved and the property details.
Section 4 looks at the length of the tenancy, whether it’s a one-year, monthly, or other length of time. It notes that tenants do not have to move out at the end of the term.
Section 5 outlines the cost of rent. It says that tenants are not required to pay via post-dated cheques (although they can if they want) and landlords can’t charge more than $20 for insufficient funds from cheques.
Section 6 outlines which utilities are included in the lease, and whose responsibility it is to pay for things like electricity, heat, and more.
Section 7 and 8 outline the deposits required, including keys and rent deposit.
Section 10 looks at whether smoking is allowed inside the unit, or whether there are specific rules related to smoking. Section 11 asks whether the tenant is required to have tenant insurance (at the discretion of the landlord).
Section 12 and 13 cover whether the tenant is allowed to make decorative changes to the unit. It also covers whos responsibility it is to maintain cleanliness (tenants), cover repairs (landlords), and ensure safety (landlords).
Section 14 outlines the rules for subletting and assignment.
Section 15 and 16 look at additional requirements. Pets are allowed, as are guests, and landlords are subject to the rules of the Residential Tenancies Act of 2006. Additional requirements need to be attached to the lease.
Finally, Section 17 is for signatures.
There is a 5-page appendix that goes through additional rules for the lease, such as which properties are exempt, how to end the agreement early, and guidelines for rent increases. I’d love to walk you through it. Message me and we can chat about documents, paperwork, or any questions you might have about renting in Toronto.
