Ontario (ON) law guide
Quick answer
Ontario prohibits security and damage deposits; landlords may collect last month's rent only, and must pay 2.1% annual interest on that deposit in 2026. Rent control applies to units first occupied before November 15, 2018, with the 2026 guideline set at 2.1%. Nonpayment evictions begin with an N4 notice giving tenants 14 days to pay before the landlord can file an L1 application with the Landlord and Tenant Board (LTB).
Security deposit rules
Security and damage deposits are banned. Last-month rent deposit only; interest paid at 2.1% annually (2026 rate).
Rent control
2026 guideline: 2.1%. Units first occupied after Nov 15, 2018 are exempt. One increase per 12 months; 90 days written notice required (Form N1).
Tribunal/board
Landlord and Tenant Board (LTB), tribunalsontario.ca/ltb
Nonpayment notice
N4 Notice, 14 days to pay or vacate. If unpaid, landlord files L1 application with LTB. Sheriff enforces final order.
Ontario rental market snapshot
Population
15.2 million
Renter households
~32% of households
Median rent
$2,600/mo (2BR, Toronto, 2026)
Largest rental markets
Toronto, Ottawa, Mississauga, Brampton, Hamilton, London, Kitchener
Toronto 2BR asking rents fell roughly 5.5% year-over-year as of early 2026, though they remain the second-highest in Canada after Vancouver. Post-2018 builds are exempt from rent control, driving a large stock of uncontrolled units in new high-rises.
Ontario law under the Residential Tenancies Act strictly prohibits security deposits and damage deposits. The only deposit a landlord may collect is a last-month rent deposit, which must be applied to the final month of tenancy.
Landlords must pay annual interest on the last-month deposit at the provincial guideline rate, which is 2.1% for 2026. A key deposit is also permitted but only up to the actual replacement cost of the key. Tenants who paid an illegal deposit can file a T1 application with the LTB to recover it.
Rent can only increase once every 12 months, and landlords must give 90 days written notice using Form N1 before any increase takes effect. The 2026 provincial rent increase guideline is 2.1%, which applies to all units first occupied on or before November 15, 2018.
Units first occupied after November 15, 2018 are entirely exempt from rent control, meaning landlords may increase rent at any amount on renewal with proper notice. Landlords may apply to the LTB for an above-guideline increase to cover extraordinary cost increases such as major capital repairs.
For nonpayment of rent, a landlord must serve an N4 Notice giving the tenant 14 days to pay all arrears. If the tenant does not pay, the landlord files an L1 application with the Landlord and Tenant Board. As of mid-2026, Bill 60 (which would reduce the cure period to 7 days) has received Royal Assent but the relevant section has not yet been proclaimed in force.
After an LTB hearing, if an eviction order is granted, only the Sheriff (Court Enforcement Office) can physically remove a tenant. Landlords who attempt self-help evictions, including changing locks or removing belongings, face significant penalties. The full process from N4 to enforcement typically takes 1 to 3 months.
Landlords must provide at least 24 hours written notice before entering a rental unit, specifying the reason, date, and a time between 8 a.m. and 8 p.m. Emergency entry is permitted without notice. Notice via email or text is only valid if the tenant has previously agreed to electronic communication in writing.
Landlords are legally required to maintain the unit in a good state of repair and in compliance with health and safety standards. Tenants can file a T6 application with the LTB for failure to repair, and the board may order repairs, rent abatements, or other remedies.
The Ontario Human Rights Code prohibits discrimination in housing on the basis of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, age, marital status, family status, disability, or receipt of public assistance. Landlords may not refuse to rent or impose different terms on any protected ground.
Tenants have the right to quiet enjoyment of their unit, protection from illegal rent increases, and the right to sublet or assign with the landlord's consent (which cannot be unreasonably withheld). The LTB also protects tenants from bad-faith evictions, including those filed under own-use or renovation grounds where the landlord does not follow through.
Ontario mandates a standard lease form (Form 2229E) for most new private residential tenancies signed after April 30, 2018. If a landlord refuses to provide the standard lease, the tenant may withhold one month's rent after 21 days written demand. Clauses in a lease that attempt to take away or reduce RTA rights are void.
Pets cannot be banned in Ontario leases; a clause prohibiting pets is unenforceable under the RTA. Landlords may still pursue the tenant for pet-caused damage through the LTB. Fixed-term leases automatically become month-to-month tenancies at the end of the term unless both parties agree otherwise.
This guide is general information, not legal advice. Governing statute: Residential Tenancies Act, 2006. Laws change; confirm the current statute or consult an attorney before acting. Last reviewed 2026-06-06.
Ontario FAQ
No. Security and damage deposits are completely banned under the Residential Tenancies Act. The only deposit permitted is a last-month rent deposit. If a landlord demands any other deposit, file a T1 application with the LTB to recover it.
The 2026 rent increase guideline is 2.1%. Landlords must give 90 days written notice on Form N1, and can only raise rent once every 12 months. Units first occupied after November 15, 2018 are exempt from rent control and may see higher increases.
The landlord serves an N4 Notice giving the tenant 14 days to pay all arrears. If the tenant does not pay, the landlord files an L1 application with the LTB. An LTB order is required before anyone can be evicted, and only the Sheriff may carry out physical removal.
No. The Residential Tenancies Act makes no-pet clauses void and unenforceable. Landlords can still seek compensation for pet-caused damage through the LTB, but they cannot evict a tenant solely for having a pet.
Yes, for most private residential tenancies signed after April 30, 2018, the provincial standard lease form (Form 2229E) is mandatory. If the landlord refuses to provide it within 21 days of a written request, the tenant may withhold one month's rent.
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