Which lease clauses are illegal in Ontario?
Short answer: Any term that is inconsistent with the Residential Tenancies Act or its regulations is void (s. 4(1)), and the Act applies despite any agreement or waiver to the contrary (s. 3(1)). That covers common clauses like no pets, no guests, damage deposits, late fees, making the tenant pay for all repairs and a promise to move out signed with the lease. You can't enforce them, and money collected under them can be ordered repaid.
This applies where the Residential Tenancies Act (RTA) covers the unit. If your renter shares your kitchen or bathroom and you live there, the Act usually doesn't apply. See renting rooms in your home.
10 clauses that are void, and what to do instead
| Clause in the lease | Why it's void | What you can do instead |
|---|---|---|
| "No pets" | RTA s. 14 | Require the tenant to follow condo rules that limit pets. Deal with real damage or disturbance through an N5. See no-pet clauses. |
| "No guests, roommates or extra occupants" | ontario.ca lists it as a void section 15 term | Write rules about the space, such as parking, laundry times and quiet hours, not about who may visit. |
| Damage, pet or cleaning deposit | The only security deposit allowed is a rent deposit (s. 105(1)) | Take a last month's rent deposit of up to one month (s. 106) and, if you like, a refundable key deposit (O. Reg. 516/06 s. 17). |
| Late fee, penalty or interest on unpaid rent | s. 134(1)(a) bans fees and penalties; ontario.ca lists interest on rent arrears | Track payment dates and use the N4 or N8. See late fees. |
| "Tenant pays for all repairs" | The landlord must keep the unit in good repair (s. 20(1)), even if the tenant knew of the problem when signing (s. 20(2)) | The tenant is responsible for undue damage they, an occupant or a guest cause wilfully or negligently (s. 34). See tenant damage. |
| "Miss one payment and the rest of the lease is due" | Acceleration clauses are void (s. 15) | Serve an N4 for the rent actually owing, then file an L1 if needed. |
| A signed N9 or move-out agreement collected with the lease | Void if given at signing or as a condition of the lease (s. 37(4), (5)), except some student housing (s. 37(6), (7)) | Agree on an N11 later, when you both actually want the tenancy to end. |
| "Tenant must leave when the one-year term ends" | A tenancy ends only under the Act (s. 37(1)); an expired term becomes month to month on the same terms (s. 38(1)) | Give a proper notice for a reason the Act allows, or agree on an N11. |
| Post-dated cheques or automatic payments required | You can't require them (s. 108) | Offer them as one option the tenant can choose, such as e-Transfer. |
| "Landlord may enter at any time" | Entry without written notice is allowed only in an emergency or with consent at the time (s. 26(1)); other entries need 24 hours' written notice for a reason the Act allows (s. 27(1)) | Give written notice. See the 24-hour entry rules. |
What happens if your lease has one
- The term is void, not the whole lease. Section 4(1) voids the provision that is inconsistent with the Act. The rest of the agreement, including the rent and the term, still applies.
- A tenant signing it doesn't change that. The Act applies despite any agreement or waiver to the contrary (s. 3(1)). "The tenant agreed" is not an answer at the LTB.
- Money collected under it can come back. A tenant or former tenant can apply for an order that the landlord pay back money collected or retained in contravention of the Act (s. 135(1)), within one year of when it was collected or retained (s. 135(4)).
- Standard lease section 15 is where these usually hide. ontario.ca says any extra term that tries to take away a right or responsibility under the Act is void. See the standard lease guide.
Terms that usually do work
Section 15 terms that are specific to the property and don't remove any right under the Act, such as garbage and recycling days, use of a shared yard or laundry, one parking spot, smoking rules inside the unit (standard lease section 10) and reasonable quiet hours. The standard lease also lets you require tenant liability insurance in section 11. See tenant insurance.
Worked example
You sign a lease on Thursday, October 15, 2026 for a basement unit starting Sunday, November 1, 2026, at $2,000 a month. You collect $2,000 as last month's rent and a $300 "damage deposit". Section 15 says "No pets" and "$50 late fee after the 3rd".
- The $300 damage deposit is not allowed (s. 105(1)). The tenant has one year from when you collected it to apply for it back (s. 135(4)). The simple fix is to return it now and give a receipt.
- The $2,000 rent deposit is fine. It is no more than one month's rent (s. 106(2)).
- "No pets" and the $50 late fee can't be enforced. Tell the tenant in writing that you won't rely on them. The rest of the lease stands.
- December's rent arrives on Friday, December 11, 2026. You charge no late fee. You record the date, and if late payments keep happening, you look at the persistent late payment route.
Where the toolkit helps: The toolkit's Never Do This sheet (File 11) lists the lease terms and charges that get landlords in trouble, and the Ontario Rules Quick Guide (File 06) covers section 15 terms and which deposits you can collect. See what is inside the $19 toolkit
Mistakes to avoid
- Copying a lease template from another province or the US. Most new Ontario tenancies must use the standard lease (s. 12.1).
- Relabelling a fee as something else. Section 134 bans any "fee, premium, commission, bonus, penalty" or "other like amount", whatever you call it.
- Using a void clause as the reason on a notice. Build any notice on a ground the Act allows and on your records, not on the lease clause.
Official sources
- Residential Tenancies Act, 2006 (ontario.ca/laws)
- ontario.ca: Guide to Ontario's standard lease, section 15 Additional terms (examples of void terms)
- O. Reg. 516/06 (General regulation under the RTA), s. 17 (key charges and deposits exempt from s. 134) (ontario.ca/laws)
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.