Since 30 April 2018, it has been mandatory for landlords to use the Standard Ontario Rental Lease Agreement to let residential property. Recent updates – reflecting the latest tenancy regulation – to this agreement are effective for leases signed on or after 1 March 2021. With this in mind, landlords need to understand what the new Ontario Rental Lease Agreement entails.
Important Sections in The Ontario Rental Lease Agreement
To help you navigate the Ontario Standard Lease we at AntsLabor highlighted important sections below.
Term of Tenancy
In this section, you will insert the duration of the tenancy in addition to when the tenant will be allowed to move in. Once the term of the tenancy concludes, tenants are not required to move out or sign a new lease. The agreement's rules will remain effective depending on the tenure of a tenant – daily, weekly, monthly.
Rent
This section deals with the lawful rent. This amount will be calculated based on the information inserted in Section 5(b) of the Ontario Rental Lease Agreement and includes the base rent as well as separate charges for parking and other services.
Services and Utilities
Detailed in this section are the services included in the rent. The tenant and landlord may also decide to add seasonal services, like air conditioning in the summer or provisions for a block heater in the winter. Additionally, in this section, the landlord and tenant will also determine who is responsible for utilities (heat, water, electricity) in the unit.
Rent Discounts
Under this section, landlords may be allowed to offer a rent discount to tenants. When the discount ends, tenants will need to pay the lawful rent as indicated in Section 5(b) of the Ontario Rental Lease Agreement.
Rent Deposit
If a rent deposit is required, you will indicate the amount in this section. According to Ontario Law, landlords cannot:
Furthermore, landlords cannot use a rent deposit as a damage deposit.
Smoking
Provincial law restricts smoking in communal areas. Therefore, landlords will need to stipulate in this section whether smoking is permitted in the unit.
Tenant Insurance
If the landlord requires a tenant to have liability insurance, include that requirement in this section. Additionally, landlords may request proof of coverage to confirm this provision has been met.
You can read the comprehensive version of this guide on the official website for the Government of Ontario.
Changes To The Ontario Standard Lease
As of 1 March 2021, the most noticeable changes in the Ontario Standard Lease include a provision to sign the document digitally if agreed to by both parties. Additionally, landlords are no longer required to provide tenants with a 12-month history of electricity usage.
The new Standard Ontario Lease also details the provisions under which landlords can terminate the lease, and what compensation – if any – a landlord needs to provide to a tenant when terminating a lease due to the sale of the rental unit.
To help automate the landlord process – and make renting simpler – remember to use our property management software at AntsLabor, made for the Ontario area. Our feature of Rental Lease Agreement e-Signing allows you to create a lease within 5 minutes. Stay tuned for its coming in Jun!
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