Ontario landlords operate under one of the most heavily regulated tenancy regimes in North America. The Residential Tenancies Act, 2006 (RTA) governs virtually every aspect of a residential tenancy — from the form of the lease agreement itself to the circumstances under which a landlord can enter the premises. Violating the RTA exposes landlords to orders from the Landlord and Tenant Board (LTB), rent abatements, and even administrative fines. This comprehensive guide walks through the critical legal requirements every Ontario landlord must understand entering 2026.

The Mandatory Standard Lease: Form 2229E

Since April 30, 2018, all new private residential tenancies in Ontario that are entered into on or after that date must use the provincial government's mandatory Standard Lease form — officially designated as Form 2229E. This requirement is established by Ontario Regulation 9/18 under the RTA. The standard form covers the essential terms of any Ontario tenancy: the parties' legal names, the rental unit address, the rent amount and payment date, whether utilities are included, the tenancy start date (and end date if it is a fixed-term tenancy), and various rules about smoking, parking, and additional terms.

Landlords must use the current version of Form 2229E — the province updates it periodically. The form is available free of charge from the Ontario government website. Landlords who fail to provide a signed standard lease within 21 days of the tenant's written request are subject to consequences: the tenant may withhold one month's rent, and if the landlord still fails to provide the lease within 30 days, the tenant may keep the withheld rent.

Required Schedules: Form 2229E has mandatory schedules that landlords cannot modify or delete. Schedule A sets out the RTA provisions that apply regardless of what the lease says. Schedule B includes the landlord's and tenant's standard legal obligations. Any additional terms a landlord wants to add must go in Schedule C — and they are only enforceable if they do not conflict with the RTA.

2025 Rent Increase Guideline: 2.5%

The Ontario government sets an annual rent increase guideline that limits how much most landlords can raise rent for existing tenants without LTB approval. For 2025, the guideline is 2.5%. For 2026, landlords should monitor the Ministry of Municipal Affairs and Housing's annual announcement, typically issued in the fall of the preceding year.

The guideline applies to most residential tenancies. However, rental units first occupied for residential purposes on or after November 15, 2018 are exempt from rent control — landlords of those units can raise rent by any amount with proper notice. Additionally, landlords can apply to the LTB for an "above-guideline" rent increase (AGI) if they have incurred eligible capital expenditures (major renovations), experienced extraordinary increases in operating costs, or sustained security service costs.

A landlord must give at least 90 days' written notice of any rent increase using Form N1 (Notice of Rent Increase). Rent can only be increased once in any 12-month period for a given tenant, and only 12 months after the tenant first moved in or after the previous increase took effect.

Overview of N Notices Under the RTA

The LTB uses a standardized notice system — the "N forms" — for the various grounds on which a landlord can give a tenant notice to end a tenancy or address a breach. Understanding which form applies to which situation is essential:

Last Month's Rent Deposit Rules

Ontario landlords are permitted to collect a last month's rent (LMR) deposit at the beginning of a tenancy. This deposit is held and applied against the last month's rent when the tenancy ends — it cannot be used for anything else (unlike a security deposit in other provinces). Key rules:

No Damage Deposits in Ontario: Unlike most other provinces, Ontario law prohibits landlords from collecting any deposit other than the last month's rent and a key deposit (refundable). Collecting an additional "damage deposit" violates the RTA and can result in an LTB order to repay the amount plus interest.

Entry Requirements: 24-Hour Notice (RTA s.27)

Section 27 of the RTA restricts when and how a landlord may enter a tenant's unit. The general rule is that a landlord must provide at least 24 hours' written notice before entry, specifying the reason and the time of entry (which must be between 8 a.m. and 8 p.m.). Permitted reasons for entry include making repairs, inspecting the state of repair, showing the unit to prospective tenants or purchasers, or carrying out an inspection authorized by the lease.

There are narrow exceptions where no notice is required: in cases of emergency (fire, flood, serious structural failure) or if the tenant consents at the time of entry. A landlord who enters without proper notice commits an offence under the RTA and can be ordered by the LTB to pay the tenant compensation for the intrusion.

LTB Jurisdiction: Up to $35,000

The Landlord and Tenant Board is a specialized administrative tribunal with exclusive jurisdiction over most residential tenancy disputes in Ontario. As of recent amendments, the LTB has the authority to hear and decide claims for monetary compensation of up to $35,000. This covers landlord applications for unpaid rent, property damage, and tenant applications for rent abatements and damages arising from the landlord's breach of the RTA.

For claims above $35,000, the parties must proceed in the Ontario Superior Court of Justice, though this is rare in residential tenancy contexts. The LTB's hearing process involves filing an application (using the appropriate L form for landlord applications), paying a filing fee, serving the other party, and attending a hearing — now primarily conducted by videoconference. Adjudicators have broad remedial powers, including ordering eviction, rent abatement, and payment of compensation.

Common Landlord Mistakes to Avoid

Ontario's tight regulatory framework means small errors can be costly. Common mistakes include: