Ontario Landlord-Tenant Laws: Complete Guide for Property Owners
Comprehensive overview of Ontario rental property laws including the 2026 Rent Increase Guideline, Bill 60 updates, and the Federal Renters' Bill of Rights.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Ontario's rental market is primarily governed by the Residential Tenancies Act, 2006 (RTA), which came into effect on January 31, 2007. While the Fighting Delays, Building Faster Act, 2025 (Bill 60) received Royal Assent on November 27, 2025, the amendments it introduces to the Residential Tenancies Act, 2006 are not yet in force. The previous rules under the RTA continue to apply until these changes are proclaimed into effect, alongside 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 (RTA s. 106).
- Interest: Landlords must pay annual interest on the LMR deposit at the same rate as the annual rent increase guideline (s. 106(6)).
- Prohibited: Key deposits exceeding the actual cost of replacement; pet deposits (s. 14); cleaning fees.
2. Rent Increases (2026 Cap)
Most residential units in Ontario are subject to the annual rent increase guideline (s. 120).
- 2026 Guideline: 2.1%.
- Notice: Requires 90 days' written notice via Form N1 (s. 116).
- Exemption: Units first occupied for residential purposes after November 15, 2018, are generally exempt from the guideline cap (s. 6.1).
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): The grace period for a tenant to pay rent arrears after receiving an N4 Notice to End Tenancy for Non-payment of Rent is currently 14 days. The proposed reduction to 7 days under Bill 60 is not yet in force.
- Landlord's Own Use (N12): For a landlord's own use, an N12 notice requires a minimum of 60 days' notice. The landlord must also provide compensation to the tenant equal to one month's rent on or before the termination date specified in the N12 notice, or offer another acceptable rental unit. The provision under Bill 60 that would remove the compensation requirement if 120+ days' notice is given is not yet in force.
4. Mandatory Standard Lease
Landlords must use the Ontario Standard Lease for most private tenancies (s. 12.1). 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 (s. 20). There is currently no requirement for tenants to pay 50% of claimed arrears into the LTB before they can raise maintenance counter-claims during an eviction hearing. This proposed change under Bill 60 is not yet in force.
Frequently Asked Questions
▶What are the key landlord-tenant laws in Ontario?
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. This guide covers the essential compliance requirements for property owners and landlords.
▶What is the eviction process for landlords in Ontario?
The eviction process in Ontario requires landlords to follow formal legal procedures established by both regional and national law. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order.
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▶What are the rent increase rules in Ontario?
Ontario has specific rules governing when and how landlords can increase rent, which may include caps on the percentage of increase, minimum notice periods, and restrictions on frequency. These rules may differ from national standards, so landlords must check regional regulations.
Read the complete guide▶What are the security deposit rules in Ontario?
Security deposit rules in Ontario govern how much landlords can charge, how deposits must be held or protected, and the timeline for returning deposits after a tenancy ends. Landlords must provide itemized statements of any deductions and comply with all regional and national statutory deadlines.
Read the complete guide▶What are the mandatory lease requirements in Ontario?
Lease agreements for rental properties in Ontario must comply with both regional and Canada national law. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation.
Read the complete guide▶What are landlord maintenance obligations in Ontario?
Landlords in Ontario are required to maintain rental properties in a habitable condition, ensuring the structure, plumbing, electrical systems, and essential services are in proper working order. Regional laws in Ontario may impose additional requirements beyond the national standard.
Read the complete guide▶What are the late fee rules in Ontario?
Ontario has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on fee amounts, and restrictions on interest charges. Check both regional and Canada national regulations for the applicable rules.
Read the complete guide▶What disclosures must landlords provide in Ontario?
Landlords in Ontario must disclose relevant property information to prospective tenants before the lease is signed. Required disclosures may include known defects, environmental hazards, previous damage, and any conditions affecting the tenant's use of the property, in compliance with both regional and national law.
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