Over the last decade, we’ve compiled a list of all the reoccurring questions people ask us about tenanting. Whether you’ve just secured your next lease or have been in the same rental for years, it’s a good idea to familiarize yourself with the info and tips we’ve put together below, to make sure you’re well informed as a tenant.
1. What is a Residential Tenancy Agreement (Standard Form of Lease)?
The Residential Tenancy Agreement is mandatory in most new agreements signed on or after April 30, 2018. It provides all the details of a rental agreement and contains helpful information about landlord-tenants’ rights and responsibilities. If you are entitled to a lease but didn’t get one, ask your landlord and they must produce it within 21 calendar days. If they don’t produce a lease, you can withhold one months’ rent. If you still haven’t received one within 30 calendar days after you withheld the rent, you can keep the withheld rent. It is important to note you cannot withhold more than one month’s rent even if your landlord has still not produced the lease and you must keep paying rent for the remainder of the lease.
2. How long is the lease term? What happens after the term ends?
The most commonly used type of tenancy agreement in Ontario is a fixed term agreement. A fixed term agreement lasts for a specific amount of time, with a start and end date agreed upon between the landlord and tenant prior to occupancy, typically lasting 1 year. After the year is up the rules of the agreement will still stand and the lease moves automatically to month to month.
3. Is renters’ insurance required?
Most landlords will require their tenants to have renters’ insurance so that if something goes wrong, neither of you are on the hook for the cost of damage. A renters insurance policy will protect you against things like theft or damage from fire, smoke, or water. If your landlord doesn’t require insurance, it’s a good idea to obtain it anyways to protect yourself.
4. How much notice is required before entering my rental unit?
Your landlord must give you 24 hours’ written notice before entering your rental unit, and can only do so if something needs to be fixed, to do a maintenance inspection, or to show the property to new tenants if you are moving out. The written notice must detail the reason for entry, the date and time of entry, which must be between 8AM-8PM. The landlord can enter without written notice if there is an emergency or if the tenant agrees to it.
5. Can I have pets in the rental unit?
Landlords have the right to refuse tenants if they suspect the tenants will move in with pets. However, once you're accepted as a tenant, they cannot legally evict you because you own pets. They can apply to evict you if the pet damages the property, disturbs the reasonable enjoyment of other tenants, is an illegal breed, breaks a municipal law, or if you don’t clean up after your pet.
6. Can my landlord increase rent?
If your rental unit was built prior to November 15, 2018, it is covered by rent control. Your landlord is allowed to increase rent once per year following a provincial rental guideline, typically 1-3%. The rent can be increased 12 months after you move in or 12 months after the last increase.
If your rental unit was occupied for the first time after November 15, 2018, it is not protected by rent control. This would be the case in a new build or new basement rental. Your landlord can increase your rent by as much as they want annually.
7. How much notice do I give before vacating?
If you are within a fixed term agreement (still within your first year of your lease) you must give 60 days’ notice and your termination day cannot be before the last day of the fixed term. If you have moved to a month-to-month agreement you must give 60 days’ notice with the termination day being the last day of the rental period. For example, if you pay rent on the 1st day of the month, the termination day must be the last day of the month. In either case, when you decide to end your tenancy, you must provide your landlord with an N9 form – Tenant’s Notice to End the Tenancy.
8. Can I break my lease early?
If you are looking to break a lease early, you are likely in a fixed term agreement. In a fixed term agreement, your landlord is obliged to provide the rental unit for the time specified in the lease, and you are obliged to pay rent for that time. There are five reasons you can break your lease early without penalty.
1. You and your landlord mutually agree to end the tenancy with an N11 form – Agreement to End the Tenancy.
2. You find new tenants and assign the lease. When assigning a lease, the new tenant (the assignee) takes over the lease completely, and any financial obligations that come with it. You must get your landlord’s approval to do this, and it’s best to get it in writing.
3. Have the LTB (Landlord and Tenant Board) issue an order to end the tenancy early. This usually occurs if you feel your landlord has not met their legal obligations, like if your landlord unlawfully enters your unit. Once you file your application with the LTB, they will schedule a hearing with the opportunity for you and your landlord to attend.
4. You or a child living at the residence are the victim of sexual or domestic violence and believe either of you may be harmed by living at the rental unit.
5. Your landlord does not produce the Standard Form of Lease. If you’ve requested that your landlord produce a lease and they haven’t within 21 days, and you’ve withheld rent you must continue to pay rent but can end the lease with 60 days’ notice.
9. Is the deposit refundable?
When entering into a new lease agreement the tenant usually pays first and last months’ rent upfront. The last months’ rent is also considered a deposit, but must be used towards last months’ rent, and can’t be used towards anything else like a damage deposit. The maximum amount the deposit can be is one months’ rent.
The landlord can also charge a separate key deposit that will be noted in your Tenancy Agreement. Expect for a key deposit to be slightly higher if they include things like a building or parking fob.
10. What if my landlord wants to evict me?
Facing an unexpected eviction is never easy. Your landlord can only evict you in certain situations and must provide you with the proper form when doing so. Even if you are given written notice, you do not have to move out. Your landlord must apply for an eviction order from the LTB, and you will have the opportunity to attend a hearing to explain why you should not be evicted. If you agree with terminating the lease you should sign an N11 form –Agreement to End the Tenancy to have it on record that you agree with the termination of the lease.
If your landlord intends on moving into the property or they want to sell the unit they must provide you with an N12 - Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit.If they evict you with an N12 you are entitled to be compensated one month’s rent. If they are selling the unit, they must give you right of first refusal to purchase, meaning they must give you the option to purchase before accepting another offer.
If your landlord wants to renovate the unit they must provide you with an N13 - Notice to End your Tenancy Because the Landlord Wants to Demolish the Rental Unit, Repair it or Convert it to Another Use. The landlord must compensate you if they evict you this way. They also must give you right of first refusal to move back in when the renovation is complete. Make sure you put it in writing that you want to move back in once the renovations are completed.
No matter which form you’ve been given, if you feel like you’ve been evicted in bad faith, contact the LTB to see what your options are.
I hope this has answered any questions you may have about renting. If you want more information or want to discuss your current situation, we would be happy to help in any way we can.
