Ontario Landlord Guide › Can a landlord require post-dated cheques in Ontario?

Can a landlord require post-dated cheques in Ontario?

Last updated October 24, 2026 · Written for small Ontario landlords

Short answer: No. Under section 108 of the Residential Tenancies Act, neither a landlord nor a lease can require a tenant or prospective tenant to give post-dated cheques for rent, or to allow automatic payments such as a debit from their bank account or a charge to their credit card. A tenant can choose to pay that way. The standard lease says so in a note under section 5, and the LTB's guide adds that once you agree on a payment method, it changes only if you both agree.

Official source: Residential Tenancies Act, 2006 (ontario.ca/laws) · Last checked Oct 2026

This covers units under the Residential Tenancies Act (RTA). If your renter shares your kitchen or bathroom and you live there, the Act doesn't apply; see renting rooms in your home.

What you can and can't require

Payment method	Can you require it?	Source
Post-dated cheques or other negotiable instruments	No. The tenant can offer them.	RTA s. 108(a); standard lease s. 5 note
Automatic debit from the tenant's bank account	No. The tenant can choose it.	RTA s. 108(b); LTB guide
Automatic charge to the tenant's credit card, or any other automatic payment	No. The tenant can choose it.	RTA s. 108(b); LTB guide
A method you both agree on, written into the lease	Yes. Section 5 of the standard lease asks who rent is payable to and which methods will be used.	Standard lease s. 5(c), (d)
Switching to a new method later	Only if you and the tenant both agree.	LTB guide

Section 108 also covers prospective tenants, so you can't make post-dated cheques a condition of renting the unit. A lease clause that requires them is inconsistent with the Act and is void (s. 4(1)). See lease clauses that are void in Ontario.

If a cheque bounces

A cheque returned for non-sufficient funds (NSF) means that month's rent hasn't been paid. Two charges are exempt from the Act's ban on extra fees:

The NSF charge your bank charged you (O. Reg. 516/06, s. 17, para. 4).
An administration charge of up to $20 for an NSF cheque (O. Reg. 516/06, s. 17, para. 5). The regulation words this for a cheque, so don't assume it covers other payment methods.

Keep those charges off the N4. The LTB's N4 instructions say not to use the notice for amounts that aren't rent, and they name an NSF cheque charge as an example. Instead, on an L1 application the LTB can order the tenant to pay NSF charges your bank charged you, to the extent you weren't reimbursed, and unpaid NSF administration charges up to the $20 limit (RTA s. 87(5)). If the LTB makes an eviction order for arrears, a tenant who wants to void it must also pay the NSF charges the Board allowed (s. 74(4), (11)).

Any other fee, premium or penalty you collect on top of the rent is barred by section 134(1) unless a regulation allows it. See can you charge a late rent fee.

Receipts

Whatever the method, if the tenant asks for a receipt for rent, a deposit, arrears or any other amount they paid you, you must give one free of charge. A former tenant can ask within 12 months after the tenancy ends (RTA s. 109). Free template: Ontario rent receipt.

Worked example

A tenant moving in on Tuesday, December 1, 2026 at $1,800 a month offers you 12 post-dated cheques, and you write that method into section 5(d) of the lease. That's allowed because the tenant chose it.

The cheque dated Monday, March 1, 2027 comes back NSF on Thursday, March 4, and suppose your bank charges you $45 (an example figure; use whatever your bank actually charged).
The N4 shows rent only: $1,800 owing for March. Given by hand on Thursday, March 4, its termination date can be no earlier than Thursday, March 11, 2027, 7 days later, not counting the day you give it.
The $45 bank charge and a $20 administration charge are not rent. If you file an L1, you can ask the LTB to include them (s. 87(5)).
If the tenant asks to switch to e-Transfer for the rest of the lease, it's a change of method, so it happens only if you both agree (LTB guide). Note the change in writing.

Use the free N4 date calculator for your own dates.

Where the toolkit helps: The toolkit's Rent & Expense Tracker logs every payment with the date paid, amount paid and payment method, and the LTB Evidence Pack keeps a rent ledger and a receipt log, so a bounced cheque and any NSF charges are on record for an L1. See what is inside the $19 toolkit

Mistakes to avoid

Making post-dated cheques a condition of the lease or of renting to someone. Section 108 covers prospective tenants too.
Adding a bounced cheque fee above $20, or a fee for a payment that wasn't a cheque, on top of what your bank charged you (O. Reg. 516/06, s. 17; RTA s. 134(1)).
Putting NSF charges on the N4. The N4 is for rent only; ask for the charges on the L1.
Changing the payment method on your own, for example insisting on automatic debit after a bounced cheque. The LTB guide says a change needs both of you to agree.
Charging for a receipt or ignoring a request for one (s. 109).

Official sources

Not legal advice. This site is general information written by a small Ontario landlord, based on official Ontario and Tribunals Ontario sources as of October 24, 2026. Laws and LTB forms change; check the linked official source before you act, and talk to a lawyer or licensed paralegal (or call the LTB at 1-888-332-3234) about your situation. Not affiliated with the Government of Ontario, Tribunals Ontario or the Landlord and Tenant Board. Full disclaimer.