Ontario Standard Lease form: what landlords actually need to know

The Residential Tenancy Agreement (Standard Form of Lease), Form 2229E, has been mandatory for most new residential tenancies in Ontario since April 30, 2018. It is the only lease form a residential landlord can require a tenant to sign — custom-drafted leases for covered tenancies are unenforceable on their face. The form is 13 pages long and contains 17 sections; most of it is well-designed and clear. The exceptions to that, where landlords routinely lose money, are concentrated in two places: Section 15 ('Additional Terms') and the LMR (last month's rent) deposit handling.

When the Standard Lease applies (and when it doesn't)

The Standard Lease is required for new residential tenancies covered by the Residential Tenancies Act, 2006. That includes most apartments, condos, basement suites, and rented houses. It does not apply to: rooming houses where the tenant shares a kitchen or bathroom with the owner, care homes, mobile home parks, most social and supportive housing, commercial tenancies, or short-term rentals under 28 days.

For a typical Toronto condo lease, the Standard Lease applies in essentially every case. If you're unsure whether your tenancy is covered, the Residential Tenancies Act section 5 lists the exclusions; the Landlord and Tenant Board (LTB) can confirm in writing.

The penalty for not using the Standard Lease

If a landlord uses a non-standard lease for a covered tenancy, the tenant can issue a written request for the Standard Lease. The landlord has 21 days to provide it. If they don't, the tenant can withhold one month's rent — and that withheld rent does not have to be repaid. The tenant can also give 60 days' notice to terminate the tenancy on this ground.

This is a costly mistake. A landlord who uses a custom lease and stalls on the 21-day window can lose more than $2,800 in withheld rent on a typical Toronto 1BR — far more than the cost of just using the form correctly from day one.

Section 15: where landlords get into trouble

Section 15 is the 'Additional Terms' section — blank space for landlord-specific provisions. It is where most enforceable-versus-unenforceable arguments end up. The rule, from Section 3 of the Standard Lease itself: any term added here that conflicts with the Residential Tenancies Act is void. Not 'partially enforced,' not 'modified to comply' — void.

Common void clauses landlords still write into Section 15:

• 'No pets allowed' — unenforceable. Section 14 of the Residential Tenancies Act prohibits no-pets clauses in residential leases. (Specific pet behavior — damage, noise, allergies affecting other residents — can still ground a termination application, but the blanket clause is void.)

• 'Tenant agrees to annual rent increase of X%' — void. Rent increases are governed by the provincial Rent Increase Guideline (2.1% for 2026) and require formal N1 or N2 notice with 90 days' lead time. A pre-agreed rate above guideline is unenforceable for buildings first occupied before November 15, 2018.

• 'No overnight guests' — void. The tenant has rights of quiet enjoyment under section 22.

• 'Tenant pays for all repairs' — void. Section 20 of the RTA assigns repair obligations to the landlord.

• 'Lease automatically renews at X%' — partially void; the rent figure must follow the guideline, and renewal happens automatically by statute regardless.

What you should include in Section 15

Terms that complement rather than contradict the RTA are enforceable and often important. Useful inclusions:

• Smoking restrictions — unlike pet bans, smoking restrictions in residential leases are enforceable in Ontario. Be specific (cigarettes, cannabis, vaping; indoor balconies; common areas).

• Insurance requirements — requiring the tenant to carry tenant's contents insurance is permitted and standard practice.

• Condo board addendum compliance — if the unit is in a condominium corporation, including a clause that the tenant agrees to abide by the condo's declaration, by-laws, and rules is essential. Attach the rules as Appendix A.

• Parking and locker assignment — specify which numbered parking spot and locker (if any) are included.

• Utility responsibility breakdown — specify exactly which utilities are included in rent and which are tenant-paid (heat, hydro, water, internet). This affects future N1 rent-increase calculations.

• Property-specific rules that don't conflict with the RTA — e.g., 'no satellite dishes affixed to exterior surfaces,' 'no painting walls without written consent.'

The LMR (last month's rent) deposit

In Ontario, a landlord can collect a rent deposit equal to one month's rent (or one rent period, if rent is paid differently), and it must be applied to the last month of the tenancy — that's what 'LMR' means. The Standard Lease handles this correctly in Section 6 if filled in properly.

Two specific landlord obligations attach to LMR that are sometimes missed:

• Interest must be paid annually on the LMR at the rate equal to that year's Rent Increase Guideline (2.1% for 2026). The interest is owed even if the tenant doesn't ask. It can be paid in cash or credited against rent.

• Security deposits for damage are not permitted. A 'pet damage deposit' or 'cleaning deposit' on top of LMR is not enforceable; the landlord's remedy for damage is an LTB application after the fact.

Common signing-day mistakes

Five mistakes seen repeatedly on Toronto leases:

1. Pre-dating the lease to before the actual signing date. The lease is enforceable from the date of signing; pre-dating creates ambiguity in any future dispute.

2. Leaving the guarantor section blank when there is a guarantor — a guarantor must sign Section 17 or there is no enforceable guarantee.

3. Filling in a monthly rent amount without specifying the utility allocation in Section 6 — this creates ambiguity for future rent-increase math.

4. Skipping the condo addendum entirely — most Toronto condo boards have rules around move-in dates, elevator booking, noise, and short-term rentals. A tenant who breaches these without knowing is the landlord's problem.

5. Verbal side-deals not captured in the lease — anything not in writing is, in practical terms, unenforceable. Side agreements about pets, paint colors, or 'temporary' guests must go in Section 15 or they don't exist.

A note on accuracy

This guide is operational orientation, not legal advice. Specific situations — disputed clauses, eviction grounds, AGI applications, conversions of pre-2018 tenancies — should be reviewed with an Ontario real estate lawyer or a paralegal licensed by the Law Society of Ontario. The Landlord and Tenant Board (tribunalsontario.ca/ltb) publishes the current Standard Lease form and its companion guide; both are free.