Ontario Landlord-Tenant Laws: Complete Guide for Property Owners

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.