Introduction of the Standard Leasing Agreement

In Canada, particularly in Ontario, while a written residential lease is not strictly required by law, having one can prevent significant challenges for both landlords and tenants. Without a written lease, verbal agreements may lead to misunderstandings about rent, maintenance responsibilities, lease duration, and other essential terms. This lack of clarity often results in disputes, costly legal proceedings, and obstacles when trying to enforce rights or fulfill obligations. 

The Residential Tenancies Act, 2006, mandates the use of Ontario’s Standard Form of Lease for most residential tenancies, ensuring both parties understand their rights and obligations. This standard lease provides clarity, transparency, and legal protection. For landlords, it sets out rental policies, safeguards their property, and offers recourse if a tenant violates the agreement. Tenants benefit from a clear understanding of their rights, including protections against unfair eviction, rent increases, and harassment. This shared understanding fosters a positive landlord-tenant relationship and helps to minimize potential conflicts.

Ontario’s Residential Tenancy Agreement (Standard Form of Lease) is a government-approved document containing essential clauses that align with Ontario’s rental laws, making it an ideal choice for non-professionals who may lack the legal expertise needed to draft enforceable agreements independently. While the comprehensive terms cover most rental issues, some individuals may find the lengthy clauses challenging to navigate or to apply to their specific situations. Our website provides a user-friendly guide with detailed explanations for each clause, helping landlords and tenants complete the form accurately, reduce legal risks, and avoid costly legal assistance—offering peace of mind and minimizing uncertainties.

Key Points to Know When Signing the standard form of lease:

1.Understanding Essential Terms: It is essential to clearly specify the monthly rent amount and due date to avoid misunderstandings between the landlord and tenant. The lease should also outline which utilities, such as water or electricity, are included in the rent and which the tenant is responsible for. Additionally, clarify the lease duration as either fixed-term or month-to-month, as this affects the rights and requirements around lease termination.

2.Tenant and Landlord Rights: Both parties should understand their rights concerning privacy and property access. Landlords are allowed entry to the property only for specific reasons and must provide adequate notice unless there is an emergency. Rent increases are restricted by Ontario guidelines, prohibiting any increase within the first 12 months of tenancy and requiring adherence to prescribed limits. The landlord must maintain the property in good repair, and tenants should avoid causing damage beyond standard wear and tear.

3.Restrictions on Additions or Alterations: It is important to check for restrictions related to subletting and assignment, as tenants need the landlord's approval to sublet, and this requirement should be clearly stated in the lease. Both parties should also clarify any rules regarding alterations to the property to ensure tenants understand that changes may need prior consent from the landlord.

4.Additional Clauses: Ontario’s Standard Form includes mandatory terms that cannot be changed, ensuring tenant protections under the Residential Tenancies Act. Landlords may add other terms to the lease, but these should not conflict with the law, as conflicting terms will be considered unenforceable.

5.Pet and Smoking Policies: Specify any policies on pets, as landlords generally cannot prohibit pets unless restricted by condominium rules. Smoking policies should also be addressed in the lease to prevent potential disputes in the future.

6.Reviewing and Keeping a Copy: Both the landlord and tenant should carefully review the enti