Ontario Landlord-Tenant Laws: Complete Guide for Property Owners

Ontario's rental market is governed by the Residential Tenancies Act, 2006 (RTA). 2026 brings new procedural efficiencies through the full implementation of provincial and federal tenant protection initiatives.

1. Rent Deposits (The Last Month Rule)

Ontario landlords are prohibited from taking "security deposits" or "damage deposits."

• Permitted: A Last Month's Rent (LMR) deposit equal to one month's rent.
• Interest: Landlords must pay annual interest on the LMR deposit at the same rate as the annual rent increase guideline (2.1% for 2026).
• Prohibited: Key deposits exceeding the actual cost of replacement; pet deposits; cleaning fees.

2. Rent Increases (2026 Cap)

Most residential units in Ontario are subject to the annual rent increase guideline.

• 2026 Guideline: 2.1%.
• Notice: Requires 90 days' written notice via Form N1.
• Exemption: Units first occupied for residential purposes after November 15, 2018, are generally exempt from the guideline cap.

3. Eviction and Bill 60 Reforms

Self-help evictions are strictly illegal. All evictions must be ordered by the Landlord and Tenant Board (LTB).

• Non-payment (N4): Under 2025/2026 reforms, the grace period to pay or vacate after receiving an N4 has been reduced to 7 days (from 14).
• Landlord's Own Use (N12): Requires 60 days' notice and compensation of one month's rent (unless specific Bill 60 exemptions for 120+ day notices apply).

4. Mandatory Standard Lease

Landlords must use the Ontario Standard Lease for most private tenancies. Failure to provide a signed copy within 21 days of a tenant's written request allows the tenant to withhold one month's rent.

5. Maintenance and "Health & Safety"

Landlords must maintain properties in a "good state of repair" and fit for habitation. As per 2026 LTB standards, tenants may be required to pay 50% of claimed arrears into the LTB before they can raise maintenance counter-claims during an eviction hearing.