Ontario's residential rental market is governed by the Residential Tenancies Act, 2006 (RTA), one of the most comprehensive landlord-tenant statutes in Canada. Whether you are a first-time landlord listing a basement apartment or a tenant signing your first lease in Toronto, understanding your legal rights and obligations under the RTA is essential. This guide walks you through the 2025 landscape — from the mandatory standard lease form to the Landlord and Tenant Board (LTB) process.
The Ontario Standard Lease: Mandatory Since 2018
Since April 30, 2018, most residential landlords in Ontario are required to use the province's mandatory standard lease form (Form LTB-1) for new tenancy agreements. The standard lease was updated in March 2021 and applies to most private residential rentals including houses, apartments, condominiums, and secondary suites.
The standard lease covers the basics — rent amount, payment frequency, who pays utilities, parking, and whether smoking or pets are permitted. Critically, it includes a mandatory section on tenant and landlord rights that cannot be watered down by additional clauses.
Certain rental situations are exempt from the standard lease requirement, including care homes, mobile home parks, land lease communities, and co-operative housing. However, a written agreement of some kind is always advisable.
Rent Increase Guideline for 2025
The Ontario government sets an annual rent increase guideline that caps how much most landlords can raise rent without LTB approval. For 2025, the guideline is 2.5%. This means a landlord can increase rent by no more than 2.5% above the current rent with the required 90-day written notice.
The guideline applies to most residential units first occupied for residential purposes before November 15, 2018. Units first occupied after that date are exempt from rent control under the More Homes, More Choice Act, 2019 — meaning landlords of newer buildings can increase rent by any amount with proper notice.
Tenant Rights Under the RTA
Ontario tenants enjoy robust protections under the RTA. Key tenant rights include:
- Right to quiet enjoyment: Landlords cannot enter the unit without at least 24 hours' written notice (except in emergencies), and entry must occur between 8 a.m. and 8 p.m.
- Right to maintenance: Landlords must keep the unit in a good state of repair and comply with health, safety, housing, and maintenance standards.
- Protection against illegal eviction: A tenant can only be evicted through an LTB order. Self-help remedies like changing locks or removing belongings are illegal.
- Right to assign or sublet: With landlord consent (which cannot be unreasonably withheld), tenants may sublet their unit or assign the tenancy to another person.
- Abatement of rent: If the unit falls below habitable standards, tenants may apply for a rent reduction or abatement at the LTB.
Landlord Obligations
Landlords in Ontario carry significant obligations under the RTA. Beyond maintaining the physical unit, landlords must:
- Provide a written receipt for rent paid in cash.
- Not charge a key deposit more than the actual cost of a replacement key.
- Not charge any fees for the preparation of the lease agreement.
- Ensure the rental unit and common areas comply with all municipal property standards bylaws.
- Provide 24 hours' written notice before entering a unit for most purposes, including repairs, showings to prospective tenants, and inspections.
Landlords cannot include illegal clauses in a lease — for example, a clause prohibiting pets is generally unenforceable (although a landlord can seek eviction if the pet causes damage or unreasonably disturbs others).
Common LTB Notices: N4, N12, and N13
The LTB uses a standardized set of forms for various notices. The most common include:
- Form N4 (Non-Payment of Rent): Served when a tenant is late paying rent. The tenant has 14 days to pay the full amount owing. If paid within 14 days, the notice is void.
- Form N12 (Landlord's Own Use): Used when the landlord (or a close family member) wants to move into the unit for at least one year. Requires 60 days' notice aligned with the end of a rental period, and the landlord must pay one month's compensation or offer another comparable unit.
- Form N13 (Demolition, Conversion, or Repairs): Used when the landlord needs vacant possession for major repairs requiring a building permit or to demolish or convert the unit. Requires 120 days' notice and compensation of three months' rent, or the right to return after repairs.
The LTB Process: Applications and Hearings
The Landlord and Tenant Board is the administrative tribunal that resolves most landlord-tenant disputes in Ontario. Applications can be filed online through the Tribunals Ontario portal. There are two broad categories of applications: those filed by landlords (L-applications) and those filed by tenants (T-applications).
Common landlord applications include the L1 (eviction for non-payment of rent) and the L2 (eviction for other reasons). Common tenant applications include the T2 (landlord breached the tenant's rights) and the T6 (maintenance issues).
LTB hearings are currently conducted primarily by videoconference. Wait times have been a persistent challenge — some applications have faced delays of 12 months or more, though the tribunal continues efforts to reduce its backlog following the COVID-19 disruption.
Ending a Tenancy: Notice Requirements
A tenant wishing to vacate a month-to-month tenancy must give at least 60 days' written notice before the last day of the rental period, using Form N9. For a fixed-term lease, the tenancy automatically becomes month-to-month at the end of the term unless both parties agree otherwise — the landlord cannot force a tenant to leave at the end of a fixed term simply because the term has expired.
Mutual agreement to end a tenancy is documented on Form N11. Tenants can also give notice to terminate based on a landlord's breach of obligations (Form N15, for victims of domestic violence, allows 28 days' notice regardless of lease terms).