Residential Tenancies Act Ontario: Plain-English Guide for Landlords

What the RTA Covers

The RTA applies to most residential rental units in Ontario, including apartments, houses, basement units, condos rented by their owners, and rooms in rooming houses. It sets the rules for rent amounts, rent increases, maintenance obligations, entry to units, ending tenancies, and dispute resolution through the Landlord and Tenant Board (LTB).

What the RTA Does Not Cover

Some living arrangements are exempt:

• Hotels and motels (unless the occupant has been there 4+ weeks)
• Housing provided as a condition of employment (with some exceptions)
• Shared kitchen or bathroom with the owner (if the owner lives in the same unit)
• Short-term accommodations like Airbnb (if less than 28 days)
• Co-operative housing (governed by the Co-operative Corporations Act)

Rent Rules (Sections 104 to 136)

When Can You Increase Rent?

You can increase rent only once every 12 months, with at least 90 days written notice using the N1 form. The increase cannot exceed the annual rent increase guideline (2.5% for 2026) for units first occupied before November 15, 2018.

For units first occupied on or after November 15, 2018, there is no cap on the increase amount, but you still must provide 90 days notice and use the N1 form.

Illegal Charges

You cannot charge:

• Key deposits beyond the reasonable cost of replacing the key
• Damage deposits or security deposits (Ontario does not allow these)
• Last month's rent deposit exceeding one month's rent
• Fees for late rent payment (unless specifically agreed in the lease for NSF cheques)
• Application fees for prospective tenants (the Act does not explicitly prohibit these, but requiring them as a condition of renting can be challenged)

Last Month's Rent Deposit

You can collect a deposit equal to one month's rent, but it can only be applied to the last month of the tenancy. You cannot use it for damages or unpaid utilities. You must also pay interest on the deposit annually at the rate of the rent increase guideline.

Maintenance and Repairs (Sections 20 to 39)

Your Obligations

Section 20 requires landlords to maintain the rental unit and the residential complex in a good state of repair, fit for habitation, and in compliance with health, safety, housing, and maintenance standards. This obligation exists regardless of whether the tenant knew about the condition when they moved in.

Key maintenance obligations include:

• Ensuring heat is maintained at a minimum of 20 degrees Celsius (many municipal bylaws set this standard)
• Providing hot and cold running water
• Maintaining all plumbing, electrical, and mechanical systems
• Addressing pest infestations
• Keeping common areas clean and safe
• Ensuring smoke and carbon monoxide detectors are installed and functional

Tenant's Maintenance Responsibilities

Tenants are responsible for maintaining ordinary cleanliness of their unit and for repairing or paying for damage they or their guests cause beyond normal wear and tear.

Entry to the Rental Unit (Section 25 to 27)

A landlord cannot enter a tenant's unit whenever they want. The RTA sets strict rules:

• 24 hours written notice is required for most entries, including inspections, repairs (unless emergency), and showing the unit to prospective tenants or purchasers
• Entry must be between 8:00 AM and 8:00 PM
• The notice must state the reason for entry

Exceptions where notice is not required:

• An emergency (fire, flood, etc.)
• The tenant consents to entry at the time
• The rental agreement includes a term allowing entry for cleaning (certain circumstances only)

Ending Tenancies (Sections 43 to 88)

This is the longest and most detailed part of the RTA. The key principle: a landlord cannot end a tenancy without a valid legal reason and proper process.

Valid Reasons a Landlord Can End a Tenancy

• Non-payment of rent (N4)
• Persistent late payment (N8)
• Substantial interference with others (N5)
• Illegal activity (N6)
• Serious safety impairment (N7)
• Landlord or family member needs the unit (N12)
• Demolition, conversion, or major repairs (N13)
• Tenant gave notice or agreed to leave (N11, tenant's notice)

The Process

1. Serve the correct notice form with the required notice period
2. If the tenant does not comply or vacate, file the appropriate application with the LTB
3. Attend the LTB hearing and present your case
4. If the Board issues an eviction order, enforce it through the Court Enforcement Office if the tenant does not leave voluntarily

The Landlord and Tenant Board (Sections 168 to 215)

The LTB is the tribunal that resolves disputes between landlords and tenants. It handles applications for eviction, rent increases above the guideline, maintenance complaints, and other issues arising under the RTA.

Key things to know about the LTB:

• You cannot go directly to court for most landlord-tenant disputes. The LTB has exclusive jurisdiction
• Hearings are typically held by video conference
• Both parties can bring evidence and witnesses
• LTB orders are enforceable. Ignoring them can result in contempt proceedings
• Decisions can be reviewed by the LTB or appealed to Divisional Court on questions of law

Offences and Penalties (Sections 233 to 241)

The RTA includes significant penalties for landlords who violate the Act:

• Illegal eviction (changing locks, removing belongings, shutting off utilities): fines up to $50,000 for individuals, $250,000 for corporations
• Harassment or interference with tenant's reasonable enjoyment: fines and compensation orders
• Bad faith N12 or N13 notices: fines up to $50,000 for individuals plus compensation to the tenant
• Charging illegal fees or deposits: orders to refund the amounts plus potential fines

Sections Every Landlord Should Bookmark

• Section 20: Maintenance obligations
• Section 25-27: Entry rules
• Section 48: N12 personal use provisions
• Section 82: Tenant claims at hearings (the reason to keep your property maintained)
• Section 109: Obligation to provide rent receipts
• Sections 116-120: Rent increase rules
• Section 234: Offences and penalties

The full text of the Residential Tenancies Act is available free on the Ontario e-Laws website. For practical guidance on using the forms referenced throughout the RTA, see our complete guide to LTB forms.

Key Takeaways

• The RTA governs almost all residential rental relationships in Ontario
• Landlords must maintain properties, provide proper notice for entry, and follow strict procedures for rent increases and evictions
• Security deposits are illegal in Ontario. Only last month's rent can be collected
• The LTB is the exclusive forum for most landlord-tenant disputes
• Penalties for violations are significant: up to $50,000 for individuals
• When in doubt, check the RTA before acting. Ten minutes of reading beats months of legal trouble