Ontario Lease Agreements: What Landlords Need to Know
Knowing the subtle differences in Ontario lease agreements is essential for landlords. It helps them stay in compliance and cultivate good tenant relations. These contracts are governed by the Residential Tenancies Act, 2006 (RTA).
RTA specifies the obligations and rights of both landlords and renters. These guidelines guarantee legal compliance and foster a positive renting experience. Bloom Property Management London Ontario further explains Ontario lease agreements and what landlords need to know about them.
Using Standard Lease Form is Mandatory
Most private residential rental agreements in Ontario must use a standard lease form. This document covers essential topics, such as:
Rent
Payment dates
Each party's responsibilities and rights
The Central Forms Repository of the Ontario government provides landlords with access to the standard lease form.
Read: What is a lease?
Essential Components of the Standard Lease
The typical lease includes several vital clauses:
Parties to the Agreement
The landlord and renter are identified as parties to the agreement.
Details of the Rental Unit
It provides the rental property's address and description.
Term of Tenancy
It indicates whether the lease is month-to-month or fixed-term.
Rent and Payment
It describes the total rent amount, the payment frequency, the permitted forms of payment, and any extra fees.
Services and Utilities
It explains which utilities are due from the renter and which are covered by the rent.
Additional Terms
Such terms permit any additional agreements as long as they don't conflict with the RTA.
Any extra terms must be under the RTA. Any that do not are unenforceable.
Increase in Rent and Security Deposits
According to the RTA, landlords have the right to demand a one-month rent deposit at the start of the lease. This deposit is just for the rent for the most recent month; it cannot be used for other costs or damages. Most importantly, security deposits beyond this amount are forbidden.
Rent increases are controlled and only permitted if it has been at least a year since the last increase or the start of the tenancy. Before raising rent, landlords must provide renters with a 90-day written notice of the rise. Provincial regulations are revised yearly, so these rules govern the allowable increase.
Rights and Responsibilities
It is the landlord's responsibility to keep the rental property in a condition that conforms with the regulations of:
Housing
Safety
Health
Maintenance regulations
It involves ensuring that all essential utilities and services are secure and operational. Tenants are responsible for maintaining the apartment's cleanliness and quickly reporting any required repairs.
Prohibited Provisions
In leasing agreements, several terms are forbidden. For example, landlords are not allowed to include terms that:
Pets are prohibited (with some conditions).
Permit automatic eviction in the absence of a Landlord and Tenant Board order.
Demand automated payments or post-dated cheques.
Any such clauses are regarded as null and invalid.
The Bottom Line
Following the standardized lease form and grasping the Residential Tenancies Act is essential for navigating Ontario lease agreements. By following these rules, landlords can promote open and equitable interactions with renters and help create a stable and peaceful renting environment.