Ontario Standard Lease (Form 2229E): Complete Guide

What Is the Ontario Standard Lease?

The Ontario Standard Lease, officially known as Form 2229E, is the mandatory lease template for most private residential tenancies in Ontario. It was introduced on April 30, 2018, to standardize rental agreements and protect both landlords and tenants.

If you're renting out a unit in Ontario, you almost certainly need to use it. And no, you can't just use your own custom lease template instead.

Who Must Use It?

The Standard Lease is required for:

• Single and semi-detached houses
• Apartments in a building
• Condominiums
• Secondary suites (basement apartments, etc.)
• Most rooms in a house if you share a kitchen or bathroom with the tenant

Who Is Exempt?

• Social and supportive housing
• Commercial properties
• Seasonal or temporary accommodation
• Student housing at educational institutions (in some cases)
• Care homes

Section-by-Section Breakdown

Let's walk through the form section by section so you know exactly what goes where.

Section 1: Parties to the Agreement

This is straightforward. You'll enter:

• The landlord's legal name (or the corporation name if applicable)
• The landlord's address and contact information
• The tenant's legal name(s), all tenants should be listed

Make sure the names match government ID. Nicknames or shortened names can cause issues if you ever need to file at the LTB.

Section 2: Rental Unit

Describe the property clearly:

• Full address including unit number
• Whether it's an apartment, house, condo, etc.
• Whether parking and/or storage is included
• Whether the unit is a condo (this affects certain rules)

Section 3: Contact Information

Provide the contact details for the landlord or property manager. This is important because the RTA requires tenants to have a way to reach you for maintenance requests and emergencies.

Section 4: Term of Tenancy

Here's where many landlords get confused. You have two options:

1. Fixed-term lease (most commonly 12 months)
2. Month-to-month from the start

Important: When a fixed-term lease expires, the tenancy automatically becomes month-to-month under the RTA. You cannot force a tenant to sign a new lease or leave when the fixed term ends. This surprises many new landlords.

Section 5: Rent

Specify:

• The total monthly rent
• What the rent includes (parking, utilities, storage, etc.)
• The due date (typically the 1st of each month)
• Accepted payment methods

You cannot require post-dated cheques under the RTA, though you can accept them if the tenant offers voluntarily.

Section 6: Services and Utilities

Check off which utilities and services are included in the rent and which the tenant pays separately. Be specific. Vague agreements lead to disputes.

Section 7: Rent Discounts

If you're offering a discount for early payment, document it here. Be careful with this section, it must comply with the RTA.

Section 8: Rent Deposit

In Ontario, you can collect a rent deposit equal to one month's rent (or the rent for the period if rent is paid weekly). This deposit can only be applied to the last month's rent, not to damages.

Key rules:

• The deposit cannot exceed one month's rent
• You must pay interest on the deposit annually at the Ontario rent increase guideline rate
• You cannot collect a damage deposit in Ontario. This is one of the most misunderstood rules.

Section 9: Key Deposit

You can charge a refundable key deposit, but it can only cover the actual cost of replacing the keys, not an arbitrary amount. $50 to $100 is typical. You must refund it when keys are returned.

Section 10: Smoking

You can prohibit smoking in the unit and on the property. This is enforceable. Include cannabis if applicable.

Section 15: Additional Terms

This is where landlords often get into trouble. You can add additional terms, but they cannot contradict the RTA. If they do, the illegal terms are void and unenforceable.

Common Illegal Clauses to Avoid

• No pets clauses, unenforceable in Ontario (with limited exceptions for condos)
• Requiring tenants to pay for normal wear and tear
• Prohibiting guests or overnight visitors
• Automatic rent increases beyond the guideline
• Clauses allowing eviction without LTB process
• Damage deposits of any kind

Even if a tenant signs a lease with these clauses, they're void from day one. The LTB won't enforce them.

What If You Don't Use the Standard Lease?

If you fail to provide the Standard Lease, your tenant can request it in writing. You then have 21 days to provide it. If you don't, the tenant can:

1. Withhold one month's rent
2. File a complaint with the Rental Housing Enforcement Unit

It's not worth the risk. Just use the form.

Tips for Filling It Out Right

1. Download the latest version from the Ontario government website. The form gets updated periodically.
2. Fill it out digitally if possible for clarity
3. Both parties sign and keep copies
4. Attach any additional documents (condo rules, parking agreements) as appendices
5. Review additional terms carefully to ensure RTA compliance

Managing multiple leases? BricksAbove helps you store, organize, and track all your lease documents digitally. No more hunting through filing cabinets.

Planning your next rent adjustment? Use our free rent increase calculator to see exactly how much you can raise rent under Ontario's guidelines. If you're also evaluating whether your rates are competitive, our rent calculator can help you compare your property against current market conditions.

After the Lease Is Signed

Your obligations don't end at signing. Keep in mind:

• Provide the tenant with a copy of the signed lease within 21 days
• Provide a copy of the Information for New Tenants brochure (included with the Standard Lease package)
• Keep your copy in a safe, accessible location
• Review the lease annually, especially before rent increases

The Ontario Standard Lease might seem like a lot of paperwork, but it actually simplifies things. It ensures everyone is on the same page from day one, and it gives you a legal framework that holds up at the LTB. Use it correctly, and you'll avoid most common landlord-tenant disputes before they start.

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