In 2010, I made a huge contractual mistake. You see, I owned a 2-bedroom condo in Queen West and wasn’t living there much anymore (hello future boyfriend). I decided to have a friend rent one of the bedrooms in a shared Ontario rental agreement so I could cover costs more easily. What I failed to do was clarify how much of the property was being rented in the Ontario tenancy agreement.
My (ex) friend decided to take advantage of me and claim that the entire unit was hers, and I could no longer visit my own home unless I asked her first. All of my furniture was there. It was my home. But I had made a giant legal mistake.
Luckily, I worked it out with her six months later, and we went our separate ways.
A well-written Ontario tenancy agreement with carefully drafted lease clauses and additional terms is what separates smooth, profitable tenancies from expensive legal disasters.
We have had many of our landlord clients avoid huge problems by including the right lease clauses from the very beginning. And just as importantly, I have seen what happens when those clauses are missing.
The reality is that the standard lease agreement Ontario provides is only a starting point. It does not go nearly far enough in protecting landlords from damage, rent arrears, unauthorized occupants, liability claims, and property misuse.
That is why every Ontario rental agreement we structure includes custom protective clauses, aggressive tenant vetting, and legal-grade documentation — because a rental property should be a wealth-building asset, not a legal nightmare.
Ontario’s New Tenancy Rules: What Landlords Need to Know
Ontario’s landlord-tenant laws continue to evolve, and as of late 2025, Bill 60 was enacted to reduce delays in eviction enforcement and streamline Landlord and Tenant Board procedures.
Most importantly for landlords:
Tenants now have as little as 7 days after receiving an N4 notice for non-payment of rent before a landlord can apply to the Landlord and Tenant Board for eviction.
Appeal and review windows have been shortened, meaning fewer opportunities for tenants to delay enforcement.
Digital hearings and document submissions have accelerated the eviction process.
What this means for landlords is simple:
Your Ontario tenancy agreement must be airtight.
When enforcement moves faster, your lease agreement Ontario becomes the primary legal document that determines your rights. Weak lease clauses create risk. Strong additional terms to the residential tenancy agreement create leverage.
Interested in real estate investing in Toronto? Here are a few more posts you might enjoy next:
- Can You Use Rental Income to Qualify for a Mortgage in Ontario
- Can I Build a Garden Suite on My Property?
- Calculating Taxes When Selling a Rental Property
The Most Important Lease Clauses Every Ontario Rental Agreement Needs
1. Damage, Liability and Rent Enforcement Clauses
Damage and non-payment of rent are the two biggest financial threats to landlords in Ontario.
Your lease agreement Ontario must clearly define:
- What constitutes damage beyond normal wear and tear
- Tenant responsibilities for all damage caused by themselves or their guests
- The landlord’s right to repair and charge back
- Move-in inspection reports with dated photos attached to the lease
Often, I include a clause stating that tenants are responsible for any wear and tear or improvements under $50. I do this so they don’t call the landlord when a light bulb burns out or when a handle is loose.
Without these lease clauses, landlords can be forced to absorb tens of thousands in repairs.
Your Ontario rental agreement should also clearly outline:
- Rent due dates
- Acceptable payment methods
- Late payment consequences
- Enforcement timelines
- Legal recovery of arrears
We include additional terms to the residential tenancy agreement that reference:
- N4 enforcement procedures
- The updated 7-day non-payment rule
- Legal cost recovery where permitted
Rent not paid on time is the number one cause of tenancy disputes. A properly drafted Ontario tenancy agreement gives you immediate enforcement power.
2. Snow Removal and Ice Maintenance Clauses
This is one of the most misunderstood areas of landlord liability.
Under Ontario law, landlords are responsible for keeping walkways and common areas safe unless the duty is clearly assigned to tenants in the Ontario tenancy agreement.
Your lease clauses must clearly state:
- Who is responsible for snow and ice removal
- What areas are included such as walkways, driveways, steps, and porches
- Performance standards and timelines after snowfall
Without this clause, landlords are exposed to personal injury lawsuits, even if the tenant verbally agreed to shovel. Verbal agreements do not protect you when someone claims they cannot work anymore because of your negligence.
3. Garbage Removal and Property Maintenance Clauses
I once had a tenant fail to break down her boxes properly. Property management saw the delivery address and billed me $100 for the mess. I was responsible for paying that because we lacked a clause concerning garbage in the Ontario rental agreement.
Your lease agreement Ontario should clearly define:
- Who puts bins out and brings them back
- Sorting rules for recycling, organics, and garbage
- Bulk item disposal procedures
- Responsibility for by-law fines caused by tenant behaviour
We include lease clauses that make tenants financially responsible for all fines and cleanup costs resulting from improper garbage handling.
Without these additional terms to the residential tenancy agreement, landlords pay the price.
Want to learn more about how we keep our investor clients safe? Book a consultation today!
4. Smoking and Cannabis Clauses
Even though cannabis is legal, smoking inside your property is still your decision.
Your Ontario tenancy agreement must specify:
- No smoking or vaping of any substance inside the unit
- No smoking on balconies or near entrances if the building does not allow it
- Responsibility for odour remediation if the rules are broken
- Smoke damage can cost $10,000 or more to remediate once repainting, duct cleaning, and flooring replacement are factored in.
A clear smoking clause in your lease agreement Ontario gives you enforcement power.
5. Pet Clauses
You cannot, by law, discriminate against pets in the province of Ontario. You can, however, make sure that pets behave themselves.
Your Ontario rental agreement should include:
- Mandatory pet disclosure
- Approval requirements
- Limits on number and size
- Responsibility for damage, noise, and hygiene
- Professional cleaning requirements at move-out
You are not legally allowed to ask for a damage deposit, but you can word the agreement to specify amounts for damage should the tenant have a risky pet.
6. Unauthorized Occupants, Subletting and Airbnb Clauses
Overcrowding destroys properties and voids insurance policies.
- Your lease clauses must clearly state:
- Only named occupants may live in the unit
- Long-term guests require written approval
- Subletting is prohibited without consent but legally allowed if within reason
- Airbnb and short-term rentals are forbidden in most buildings
7. Tenant Insurance Clauses
You must have tenant insurance for both belongings and fire and flood damage. This protects both the tenant and your unit. Without it, you could lose your entire asset.
We require proof of insurance with the proper dates and coverage amounts. Without it, they do not get keys.
This requirement is built directly into the Ontario tenancy agreement.
We’ve helped countless buyers, sellers, and investors across Toronto. Read some of our latest reviews to see the difference we’ve made.
A Real-World Disaster and How a Better Ontario Tenancy Agreement Could Have Prevented It
A Toronto landlord once rented a detached home to what appeared to be a professional couple. Their Ontario rental agreement lacked clear unauthorized occupant and subletting lease clauses.
Within months, multiple additional occupants moved in. The basement was converted into illegal bedrooms. The home became a de facto rooming house.
Neighbours complained. Garbage piled up. Police were called repeatedly. The city issued by-law fines. When the landlord finally regained possession, the home required over $120,000 in repairs.
The landlord had:
- No unauthorized occupant clause
- No subletting clause
- No inspection clause
- No damage responsibility clause
- The eviction dragged on for months at the Landlord and Tenant Board. This entire situation could have been prevented with a properly drafted lease agreement Ontario and proper tenant vetting.
A strong Ontario tenancy agreement is not optional. It is the foundation of every successful rental property.
If you were interested in leasing out your home or Condo do not risk it by going it alone. Please contact me so that we can represent you and your assets with our greatest protection.
Get in touch via the form on this page. You can also text me at 416-728-5401 or email me directly at ddemerino@royallepage.ca.
