What to check before you rent, and your lease
Before you sign anything, it helps to know what you are signing and what a landlord is allowed to ask for. Here is a calm walk through the standard lease, what should be spelled out in it, the real deposit rules, and the two clauses that sound official but cannot actually be enforced.
Renting a place is one of the biggest commitments most people sign, and it is easy to feel rushed into it when a good unit comes up. You do not need to be an expert to protect yourself. You just need to know a handful of things to check before you put your name down, and a few things a landlord is simply not allowed to do. That is what this guide is for.
Start with the standard lease
In Ontario, most tenancies must use a standard lease form. It is a required government form, so it is the same document from one rental to the next, which is a real advantage for you. It means the ground rules are already written down in plain language, and anything a landlord wants to add sits in a clearly marked section where you can read it before you agree.
The standard lease is the official Ontario form landlords are required to use for most rentals. Because everyone uses the same form, you can compare units fairly and you can see exactly which terms are the standard rules and which ones the landlord has added on.
If someone hands you a lease that is not on the standard form, that is your cue to slow down and ask why. Read the whole thing before you sign, and pay special attention to any extra terms the landlord has written in. An extra clause on the page is not automatically valid just because it is printed there.
What to check before you sign
Before you commit, go through these four things carefully. Each one is easy to skim past and each one can cost you later.
- What is included in the rent. Is heat included? Water? Hydro? Parking? These make a real difference to what you actually pay each month, so get the answer in writing in the lease rather than in a friendly conversation.
- The rules on guests and pets. Read what the lease says, then read the next two sections here, because some of these rules are not enforceable even when they are written down.
- The deposit rules. Know exactly what a landlord can and cannot ask for before you hand over any money. More on this below.
- The landlord's identity. Make sure you know who your landlord actually is and how to reach them. You want a real name and real contact details on the lease, not just a phone number from an ad.
In Ontario, hydro just means electricity. When a listing says hydro is not included, it means you pay the electricity bill on top of your rent, which can be a meaningful amount depending on the unit and the season.
The deposit rules, the part that protects you most
This is the section worth reading twice, because it is where newcomers most often get taken advantage of. The rules are strict and they are on your side.
A landlord can only collect first and last month's rent, plus a refundable key deposit equal to the actual key replacement cost. That is the whole list. There is nothing else a landlord is entitled to collect up front.
A key deposit can only be a refundable amount equal to what it would actually cost to replace the keys, fobs, or remotes. It is not a fee and it is not extra rent. When you return the keys, you get it back.
Here is the line that matters most: security deposits and damage deposits are illegal in Ontario. If a landlord asks for money labelled as a security deposit or a damage deposit, that request is not allowed, no matter how normal it is made to sound. You are within your rights to say no.
There is also a quiet benefit built into the rules. The last month's rent deposit earns annual interest at the guideline rate, and that interest belongs to you. It is not a favour, it is the law.
The guideline rate is a percentage the province sets each year. Your landlord owes you interest on your last month's rent deposit at that rate every year, which in practice usually tops up the deposit so it keeps pace with any rent increase.
Imagine a newcomer to the Greater Toronto Area finds a unit they love, and the landlord asks for first and last month's rent plus an extra "damage deposit" just in case. Because they have read the rules, they know Ontario does not allow damage deposits, so they calmly push back and decline to pay it. The landlord either drops the request or reveals themselves as someone to walk away from. Either way, that one piece of knowledge just saved real money and a lot of stress.
The two clauses that cannot be enforced
Some leases include terms that look official but do not hold up. Two of them come up again and again, and it is worth knowing them by heart.
First, a "no pets" clause is generally unenforceable once you have moved in. It can be written right into the lease and it still does not carry the weight it appears to. Second, a clause banning overnight guests is not enforceable either. Your home is your home, and who stays over is your business.
Where to confirm the rules yourself
You never have to take a landlord's word, or mine, on what the rules are. Ontario has a clear framework for tenancies and a tribunal that handles disputes, and it is worth knowing how it works before you ever need it.
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