Owning a rental property in Ontario can be a valuable long-term investment, but being a landlord comes with important legal responsibilities. From setting rental rates and preparing lease agreements to handling repairs and managing tenant relationships, property owners must understand the rules that govern residential tenancies. Knowing your rights and obligations can help you avoid costly disputes, protect your investment, and maintain positive relationships with your tenants.
Whether you own a condominium, detached house, townhouse, or basement apartment, understanding Ontario's rental regulations is essential. The Residential Tenancies Act, 2006 (RTA) establishes the main legal framework for most residential rental properties in the province, outlining the responsibilities of both landlords and tenants.
Here is a practical guide to the important Ontario landlord rules every property owner should know in 2026.
1. Understand Ontario's Residential Tenancies Act
The Residential Tenancies Act, 2006 governs most residential rental arrangements in Ontario. It applies to many privately owned rental properties, including detached homes, condominiums, apartments, townhouses, and basement rental units.
The legislation outlines rules concerning rent payments, maintenance, lease agreements, tenant privacy, rent increases, and evictions.
However, certain accommodations and rental arrangements may be exempt from some or all provisions of the Act. For example, some university residences and accommodations where tenants share a kitchen or bathroom with the owner or certain family members may be exempt.
Before renting out a property, owners should understand whether their rental arrangement falls under the RTA.
2. Use Ontario's Standard Lease Agreement
Most private residential landlords in Ontario are required to use the provincial Standard Form of Lease when entering into a new tenancy agreement.
This agreement helps ensure that both parties understand the terms of the rental arrangement.
A standard lease generally outlines:
Names of the landlord and tenant
Rental property address
Monthly rent and payment due date
Included utilities and services
Parking arrangements
Lease start date and duration
Responsibilities for maintenance and repairs
Additional agreed-upon terms
Landlords can include additional terms when appropriate, but these cannot take away rights or protections provided by the Residential Tenancies Act.
For example, a lease cannot generally prohibit tenants from having guests or pets simply because the landlord prefers not to allow them. Certain exceptions, such as condominium rules and specific health or safety circumstances, may apply.
Tip for property owners: Always document the rental agreement properly and provide the tenant with a signed copy. Clear documentation can help prevent misunderstandings later.
3. Know the Rules for Rent Increases
Ontario has specific rules governing how and when landlords can increase rent.
For most rent-controlled residential properties, landlords must follow the provincial annual rent increase guideline.
The 2026 Ontario rent increase guideline is 2.1%, while the 2027 guideline is 1.9%.
Before increasing rent, landlords must generally follow these requirements:
At least 12 months must have passed since the tenancy began or the last rent increase.
Tenants must receive at least 90 days' written notice.
The landlord must use the appropriate Landlord and Tenant Board form.
The increase must comply with the applicable guideline unless an exemption or approved above-guideline increase applies.
Some residential units first occupied for residential purposes after November 15, 2018, including qualifying new buildings and additions, are exempt from rent control. However, landlords of these units must still follow applicable notice and timing requirements.
Property owners should verify whether their rental unit is subject to rent control before determining a new rental rate.
4. Understand Security Deposits and Other Charges
Ontario has strict rules about the deposits landlords can collect from tenants.
Unlike some other provinces, landlords in Ontario generally cannot require a separate security deposit to cover potential property damage.
Last Month's Rent Deposit
For a monthly tenancy, landlords may collect a rent deposit equivalent to one month's rent. This deposit must be applied toward the tenant's final rental period and cannot be used to cover property damage or other charges.
Landlords must also pay annual interest on rent deposits at the applicable rent increase guideline rate.
Key Deposit
A landlord may collect a refundable key deposit, provided it does not exceed the expected direct replacement cost of the keys or access devices.
Landlords cannot charge arbitrary administrative fees or additional deposits that are not permitted under Ontario's rental legislation.
5. Follow the Rules for Entering a Rental Property
Although landlords own their rental properties, tenants have the right to privacy and reasonable enjoyment of their homes.
Under Ontario's rental rules, landlords generally need to provide at least 24 hours' written notice before entering an occupied rental unit.
The notice must include the reason for entering, the date of entry, and a reasonable time between 8 a.m. and 8 p.m.
Common reasons for lawful entry include:
Completing necessary repairs or maintenance
Conducting inspections
Showing the property to prospective buyers, mortgage lenders, or insurers
Showing the rental unit to prospective tenants under applicable legal conditions
There are exceptions. For example, landlords may enter without advance notice in an emergency, when the tenant consents at the time of entry, or in certain other circumstances permitted by law.
Why this matters: Property ownership does not give landlords unrestricted access to an occupied rental unit. Respecting tenant privacy is both a legal responsibility and an important part of maintaining a professional relationship.
6. Maintain the Property and Address Repairs
Landlords are legally responsible for maintaining rental properties in a good state of repair and fit for habitation.
This responsibility generally applies even when a tenant agrees to take care of certain maintenance tasks in the lease.
Property owners should pay attention to:
Heating and plumbing systems
Electrical systems and safety concerns
Roofs, windows, and structural components
Appliances and facilities included in the rental agreement
Pest prevention and treatment
Common areas and building maintenance
Compliance with applicable health and safety standards
Tenants also have responsibilities. They must keep their rental units reasonably clean and repair or pay for undue damage caused intentionally or through negligence by themselves or their guests.
Landlords should respond promptly to repair requests, keep records of maintenance work, and arrange qualified professionals when necessary.
Regular property inspections, where legally permitted, can also help identify potential problems before they become expensive repairs.
7. Understand Tenant Rights and Landlord Responsibilities
A successful rental arrangement requires both landlords and tenants to understand their responsibilities.
Ontario law provides tenants with several important protections, including:
The right to reasonable enjoyment of their rental home
Protection against unlawful entry
Protection against harassment and discrimination
The right to necessary maintenance and repairs
Protection against illegal rent increases
The right to proper legal procedures during eviction situations
Landlords also have the right to expect tenants to pay rent according to the rental agreement, keep the rental unit reasonably clean, avoid causing undue damage, and respect other residents and neighbours.
Understanding these responsibilities can help property owners manage rental properties more effectively and reduce the likelihood of disagreements.
8. Know the Legal Eviction Process
Evicting a tenant in Ontario is not as simple as asking them to leave. Landlords must have a legally recognized reason and follow the proper procedures under the Residential Tenancies Act.
Common reasons for seeking to end a tenancy include:
Non-payment of rent
Persistent late payment of rent
Serious damage to the rental property
Illegal activity
Interference with the reasonable enjoyment or safety of others
Qualifying landlord or purchaser personal-use situations
Depending on the reason, landlords must serve the appropriate notice using the prescribed Landlord and Tenant Board form.
Ontario has introduced legislative changes affecting residential tenancies, making it especially important for landlords to review the current requirements for notices, compensation, and eviction applications.
Important: A landlord cannot personally evict a tenant, change the locks, or remove their belongings simply because a termination notice has been served.
An eviction generally requires an order from the Landlord and Tenant Board, enforced by the Court Enforcement Office.
Landlords should always follow the proper legal process.
9. Understand What Happens When a Tenant Does Not Pay Rent
Late or missed rental payments can create financial challenges for property owners, particularly those relying on rental income to cover mortgage payments, taxes, and maintenance expenses.
If a tenant fails to pay rent, landlords should:
Review the rental agreement and payment records.
Communicate with the tenant about the outstanding balance.
Keep written records of payment reminders and discussions.
Consider a reasonable payment arrangement where appropriate.
Serve the proper legal notice if the issue remains unresolved.
Apply to the Landlord and Tenant Board when necessary.
Landlords should remember that tenants cannot be legally removed without following the required process.
Keeping accurate records of rent payments, notices, and communications can be valuable if a dispute reaches the Landlord and Tenant Board.
10. Keep Accurate Records and Rental Documents
Good recordkeeping is one of the most important habits for rental property owners.
Organized documentation makes it easier to manage expenses, track rental income, and address potential disputes.
Consider maintaining a dedicated file for each rental property containing:
Signed lease agreements and amendments
Rent payment records and receipts
Rent increase notices
Tenant correspondence
Repair and maintenance invoices
Inspection records
Insurance documents
Property-related expenses
Notices and documents relating to tenancy disputes
Digital recordkeeping can make these documents easier to access, particularly for landlords who own multiple rental properties.
It is also helpful to document the property's condition before a tenant moves in, using dated photographs and a written condition report.
11. Consider Insurance, Taxes, and Local Requirements
Being a landlord involves more than understanding provincial tenancy laws. Property owners should also consider the financial and regulatory responsibilities associated with rental ownership.
Rental Property Insurance
Review your insurance policy to ensure it covers the property's rental use. Depending on the property and policy, coverage may include liability protection, property damage, and loss of rental income.
Rental Income and Taxes
Rental income generally needs to be reported to the Canada Revenue Agency (CRA). Eligible rental expenses, such as certain maintenance costs, insurance, property taxes, and mortgage interest, may be deductible when calculating rental income.
Keep receipts and financial records to support your tax reporting.
Municipal Regulations
Some Ontario municipalities have additional requirements involving rental licensing, property standards, fire safety, zoning, and additional residential units.
For example, property owners renting out basement apartments or secondary suites should verify that their units meet applicable municipal building, fire, and zoning requirements.
Following these requirements helps protect both the property owner and the people living in the rental unit.
12. Stay Updated on Changes to Ontario Rental Laws
Ontario's rental housing regulations can change, making it important for property owners to stay informed.
Landlords should regularly check official government resources for updates involving annual rent increase guidelines, changes to the Residential Tenancies Act, updated Landlord and Tenant Board forms, eviction procedures, tenant protection regulations, and municipal rental property requirements.
Relying on outdated information can create unnecessary legal and financial complications.
Useful official resources include:
Ontario Rental Rights: https://www.ontario.ca/page/renting-ontario-your-rights
Ontario Rent Increase Guidelines: https://www.ontario.ca/page/residential-rent-increases
Landlord and Tenant Board: https://tribunalsontario.ca/ltb/
Residential Tenancies Act, 2006: https://www.ontario.ca/laws/statute/06r17
Final Thoughts: Being a Responsible Landlord in Ontario
Owning rental property in Ontario can offer long-term income potential and an opportunity to build wealth. However, successful property ownership requires more than finding tenants and collecting monthly rent.
Understanding landlord responsibilities, following rent increase regulations, maintaining the property, and respecting tenant rights are all essential parts of managing a rental investment.
By staying informed about Ontario's rental laws and keeping proper documentation, property owners can reduce potential risks, protect their investments, and create a better rental experience for everyone involved.
Thinking about renting out your property? Take the time to understand the legal requirements before welcoming your first tenant. Being prepared from the beginning can make a significant difference in your experience as a landlord.
Disclaimer: This article is intended for general informational purposes only and does not constitute legal, tax, or financial advice. Rental regulations may vary depending on the property and tenancy circumstances. Consult official Ontario government resources or a qualified legal professional for guidance regarding your specific situation.
