Lease red flags – what's void, what's binding, what's negotiable
Blue Cordoba · Realtor® at Royal LePage Elite Realty, Brokerage · Last reviewed July 2026
The short answer
For most rentals, Ontario landlords have to use the government's standard lease form, so a custom multi-page lease is a flag on its own. Some clauses you'll still run into are simply void here: no-pets clauses (with narrow exceptions for condo rules), damage deposits, and fines for ordinary wear and tear. The only money a landlord can actually require is first and last month's rent, plus a refundable key deposit at what the keys really cost.
Other clauses people skim right past are completely binding, like no-smoking terms and a requirement to carry tenant insurance.
And there's one date to check before you sign anything. A building first occupied after November 15, 2018 has no cap on rent increases at all, which changes how long you can really afford to stay there.
Ontario leases are a strange thing, because the province basically wrote the contract for you. Most private residential tenancies have to use the government's standard lease form, and the Residential Tenancies Act quietly voids a whole set of clauses that landlords keep writing in anyway. Reading a lease here is mostly a matter of working out which terms actually mean anything.
The form itself is the first check
If someone hands you a custom fifteen-page lease instead of the Ontario standard form, that's a flag on its own. It's not always shady, but a landlord who skipped the required form has usually skipped a few other rules too. The standard lease does allow an appendix of extra terms, and that appendix is exactly where the clauses below tend to hide.
Which lease clauses are void in Ontario?
- No-pets clauses.Void under the RTA. A landlord can turn down your application because you have a dog, but once you're actually a tenant, a no-pets clause has no teeth. The one real exception is a condo building whose declaration restricts pets, which binds everyone in the building, tenants included. (A pet that damages the place or bothers the neighbours is a separate and legitimate matter.)
- Damage deposits and cleaning fees. Illegal in Ontario, full stop. There are only two kinds of money a landlord can ask for. A rent deposit capped at one month, which goes toward your lastmonth and can't be held against damage, and a refundable key deposit set at what the keys actually cost. A lease demanding a "$500 security deposit, refundable on inspection" is describing something the RTA flat-out prohibits. And yes, that rent deposit earns you interest every year, at the guideline rate.
- "No guests," blanket "no subletting," and rights waivers.Clauses that limit ordinary guests, ban assignment or subletting outright (the landlord gets a say, not a veto written in ahead of time), or have you "waive" access rules, maintenance duties, or your right to the Landlord and Tenant Board are all void. You can't sign away your RTA protections even if you want to.
- Post-dated cheques and fines.A landlord can't force you to hand over post-dated cheques or set up automatic payments, and lease "fines" ($200 for noise, $50 for every late day) simply aren't a thing. The law caps rent-related costs at what the RTA allows.
Fully binding – and routinely skimmed
- No-smoking clauses.Enforceable, including for cannabis. If it's in the lease, it's real.
- Tenant insurance requirements.Enforceable, and worth having anyway. It's cheap, and it covers your own belongings, which the landlord's policy never will.
- Utility responsibilities. Who pays for hydro, gas, and water is set by the lease, and it varies wildly between two otherwise identical units. Two apartments at the same rent can end up $200 a month apart once the utilities shake out. Read this part as carefully as you read the rent, because it may as well be rent.
The date that decides your rent future
One fact about the building matters more than almost anything in the lease, and that's when it was first occupied. Units first occupied on or before November 15, 2018 are rent-controlled. The increase is capped at Ontario's annual guideline (2.1% for 2026), it can happen once every 12 months, and it needs 90 days' written notice on the proper form. Units first occupied after that date have no cap at all. The same notice rules apply, but the increase itself can be any number the landlord likes. A newer building at a great rent can stop being a great rent with a single letter, so ask the occupancy date before you sign, and budget with that in mind.
After signing
Your landlord can't change the lease on their own once you've signed. New "house rules" partway through, a parking fee that shows up in month six, a no-pets policy announced by email: none of it binds you unless you agree to it. When something feels off, the Landlord and Tenant Board and the community legal clinics are the real referees. Treat this guide as a place to get your bearings, not as legal advice.
Still hunting? Start with what landlords screen for and the application pack. And if this rental search is really a step toward buying, the first-home savings account is where that groundwork begins. Tell me where you're headedand we'll work back from there.
This is general information, not financial, tax, or legal advice. Rules and dollar figures change, and these were last checked on the date above. Before you act on any of it, run your own numbers with your accountant, lawyer, or lender. Or start a conversation with me and I'll tell you which of those three you actually need.