Do I Have to Use The Ontario Standard Lease?
Under the Residential Tenancies Act (RTA), all rental agreements entered into after April 30, 2018 must use the Ontario Standard Lease. This applies to any property that is covered under the RTA, such as an apartment, detached home, secondary units such as a laneway house, and so on. If you’re in a situation not covered by the RTA, such as renting a room in your own house that you also live in, you are not required to use the Standard Lease.
This rule was put in place to preserve tenant rights, but it is sometimes necessary to codify agreements that are not covered by the Standard Lease. While the RTA requires use of the Lease, it does also say that if a tenant is given another lease, they have the right to refuse to sign and the landlord must supply this brochure along with it. A copy of any lease must also be given to the tenant within 21 days of signing. If the landlord does not provide the lease after this time, the tenant may hold back one month’s rent until they are provided with their copy.
What is Covered in the Standard Lease?
The Ontario Standard Lease, which can be found here (top document in English), covers the amount of rent, when it is due, number of parking spaces, cost for parking and utilities where applicable, the amount of the rent deposit (which cannot be more than one month’s rent), key deposit information, whether or not the tenant is required to have tenant insurance, and other details surrounding the rental of the property.
What if I Want to Have an Agreement With the Tenant Outside of the Standard Lease?
You are allowed to make separate agreements with your tenant, as long as they don’t go against the rights of the tenant under the RTA. Violations of separate agreements are covered only under civil law and can’t be used as grounds to evict a tenant.
Examples of Allowable Separate Agreements
-Snow-clearing, landscaping, and similar maintenance activities which you pay your tenant to do on your behalf, or that they agree to do on their own
Examples of Non-Allowable Agreements
-Any rent increases above the allowable annual rent increase guideline if your property was used for residential purposes before November 15, 2018
-Rules about guests or anything else that violates the tenant’s enjoyment of their own private space
-Requiring post-dated cheques or automatic debit
How can I Make Changes to the Ontario Standard Lease Post-Signing?
First, you have to check that whatever amendment you want to make does not violate the RTA. Usually, these amendments are for minor items like laundry use. If your tenant agrees, draw up a simple contract clearly laying out the terms of the amendment. You both should sign and date the document with a witness to codify consent.
If there are material changes to the lease, such as removing/adding a tenant, you will need to draw up a new lease agreement, as well as updating any separate agreements you may have. You may be faced with this kind of situation in the event of a divorce where a spouse moves out, or a new relationship where your tenant wants to move someone in. Technically, a spouse/partner does not have to be on the lease, your tenant is allowed to have anyone live with them as long as all the terms of the lease are being fulfilled.
In the event of a divorce, it gets trickier. You may be nervous about an entire income falling off the lease. However, you cannot evict in this situation unless rent payments are missed or other issues occur which are considered reasons to evict under the RTA. You may want to contact a legal professional if your tenants are going through a divorce to understand what you can and cannot do in this situation, but one tenant can stay as long as the rent is paid and their name is on the lease. Your legal professional can best advise you on whether or not to remove the vacated party from the lease.
What Risks Are There for Me if I Don’t Use the Standard Lease?
The risks are short-term and long-term. Short-term, your tenant can withhold one month’s rent until they get a copy of the Ontario Standard Lease to replace whatever document you initially gave them. Long-term, anything outside of the items on the Ontario Standard Lease are unenforceable by the Landlord and Tenant Board. This means that you cannot evict your tenant for any extra terms you add to your lease.
While it may not seem like it if you want to have additional terms on a lease, the Ontario Standard Lease is a legal instrument that protects you as well as the tenant. It shows that you’re a professional landlord that is adhering to the RTA, which goes a long way if you do end up at the Landlord and Tenant Board for any reason.
