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What You Can and Can't Add to the Ontario Standard Lease
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What You Can and Can't Add to the Ontario Standard Lease

A complete breakdown of legal vs illegal lease clauses in Ontario. Learn which additional terms hold up at the LTB, which get thrown out, and copy-paste templates for Section 15 of your Standard Lease.

Tenon10 Research Team

Tenon10 Research Team

January 16, 202616 min read
For landlordsFor investors

A Toronto landlord collected a $6,400 "damage deposit" from his tenant in 2024. Both parties signed the agreement. The tenant paid willingly. But when the tenancy ended, the Landlord and Tenant Board ordered the full amount returned—plus interest and filing fees. The landlord's mistake? Including a clause that's automatically void under Ontario law, regardless of whether the tenant agreed to it.

Ontario's Standard Lease gives landlords exactly one place to customize their agreements: Section 15, Additional Terms. But this section is a legal minefield. Include the wrong clause, and it's not just unenforceable—it could expose you to LTB fines up to $35,000 per offence. Include the right clauses, and you can protect your property, clarify expectations, and avoid costly disputes.

This guide breaks down every clause you CAN and CAN'T add to your Ontario Standard Lease. You'll get 15+ illegal clauses to avoid (with RTA section references), 20+ legal clauses you SHOULD include (with copy-paste templates), grey area clauses that trip up even experienced landlords, and real LTB case outcomes showing what happens when illegal clauses are challenged.

📋

Section 15 Compliance Checklist: Legal vs Illegal Clauses

Pre-signing checklist to verify your Ontario Standard Lease is compliant. Includes 15+ illegal clauses to avoid and 10+ legal clauses to include.

Get Free PDF →

Section 15 Explained: Your Only Customization Option

The Ontario Standard Lease has 15 mandatory sections that cannot be altered. Section 15—Additional Terms—is the only place landlords can add custom rules to their lease agreements. Understanding how this section works is essential for every Ontario landlord.

Clean infographic showing the Ontario Standard Lease structure as a flowchart with 15 numbered sections, Section 15 (Additional Terms) highlighted in blue with an arrow pointing to a customizable terms area, professional blue and white color scheme

What Is Section 15?

Section 15 is the "Additional Terms" section of Ontario's Standard Lease. It's the only place landlords can add custom rules, and any terms you include require tenant consent and must be physically attached to the lease.

RTA Section 4 states clearly: any clause inconsistent with the Residential Tenancies Act is automatically void. The Standard Lease has 15 mandatory sections that cannot be altered. Section 15 allows additions, not modifications to existing sections.

Key Rules for Section 15 Terms

  1. Must be written in plain language
  2. Must clearly state what landlord/tenant must do
  3. Minimum 10-point font if typed
  4. Must be physically attached to the lease
  5. Requires tenant's written consent

"Any term in a lease that contradicts the RTA is void and unenforceable, even if the tenant signs the document." — Marda Management

💡 Pro Tip: Even if a tenant willingly signs an illegal clause, it cannot be enforced. The RTA overrides all lease agreements—signature or not.

Illegal Clauses: The Complete List

Per the Ontario Government: "Any extra term which attempts to take away a right or responsibility under the act is void (not valid or legally binding) and cannot be enforced." These clauses are VOID regardless of whether the tenant signs them.

Warning-themed image showing a lease document with red prohibited stamps over illegal clause examples (no pets, damage deposit, repair deductible), professional setting with legal books and Ontario flag in background

Category 1: Pet Restrictions ❌

RTA Section 14: "A provision in a tenancy agreement prohibiting the presence of animals in or about the residential complex is void."

Illegal clauses include:

  • "No pets allowed"
  • "Pets prohibited"
  • "Tenant agrees not to keep any animals"
  • "Pet deposit of $500 required"
  • Size/breed restrictions (in non-condo rentals)

The Exception: Condominium corporation rules CAN prohibit certain pets. But this is the condo's rule, not a lease clause. We'll cover condo-specific rules in detail below.

What You CAN Do Instead: Ask about pets on the rental application, deny an applicant based on pets (before signing), and include pet responsibility clauses covering damage liability and cleanup requirements.

Category 2: Occupancy Restrictions ❌

Illegal clauses include:

  • "No guests overnight"
  • "No roommates without landlord approval"
  • "Maximum 2 occupants"
  • "Additional occupants require landlord consent and fee"
  • "No subletting under any circumstances"

Why They're Void: Tenants have the right to have guests for any length of time, have roommates/occupants without landlord consent, and sublet with landlord's permission (which cannot be unreasonably withheld).

The Exception: Municipal bylaws on overcrowding ARE enforceable.

"Tenants can have guests for any length of time. They can have occupants for any length of time." — Robert Di Lisi, Legal Expert (CRESI Podcast)

Category 3: Illegal Deposits ❌

Illegal deposit clauses include:

  • "Security deposit: $2,000"
  • "Damage deposit required"
  • "Pet deposit: $500"
  • "Cleaning deposit: $300"
  • "Key deposit: $500" (if exceeds replacement cost)

What's LEGAL vs ILLEGAL:

Deposit Type Legal? Maximum Amount
Last Month's Rent ✅ Yes 1 month's rent
Key Deposit ✅ Yes Actual replacement cost only
Damage Deposit ❌ No $0 — Prohibited
Pet Deposit ❌ No $0 — Prohibited
Security Deposit ❌ No $0 — Prohibited
Cleaning Deposit ❌ No $0 — Prohibited

📋 Case Study: zhou-v-he-20240906

A landlord collected an illegal damage deposit of $6,400. The LTB ordered the full amount returned. Lesson: The size of the illegal deposit doesn't matter—ALL security deposits are prohibited in Ontario.

Category 4: Maintenance Transfer ❌

RTA Section 20: Landlord responsible for "good state of repair and fit for habitation"

Illegal clauses include:

  • "Tenant responsible for all repairs under $100"
  • "Tenant pays first $100 of any repair"
  • "Tenant responsible for lawn maintenance"
  • "Tenant must shovel snow and maintain exterior"
  • "Tenant responsible for pest control"
  • "Tenant agrees to maintain appliances"

Why They're Void: Exterior maintenance is the landlord's responsibility under RTA Section 20. These duties cannot be transferred via lease agreement.

The Workaround: You CAN have the tenant handle lawn care—but it requires a SEPARATE contract (not part of the lease). This makes it a severable agreement outside RTA jurisdiction.

Category 5: Financial Violations ❌

Illegal clauses include:

  • "Post-dated cheques required"
  • "Interest charged on late rent at X%"
  • "Late payment fee: $50"
  • "NSF fee: $100"
  • "Rent increases automatically by 5% annually"
  • "Rent increases above guideline accepted"

The Nuance: You CAN request post-dated cheques, but you CANNOT require them as a condition of the lease. NSF fees ARE allowed (for actual bank charges). Rent increases must follow the guideline (2.1% for 2026).

Category 6: Rights Waivers ❌

Illegal clauses include:

  • "Tenant waives right to file with LTB"
  • "Tenant agrees landlord may enter without notice"
  • "Tenant agrees to vacate upon 30 days notice" (less than RTA requirements)
  • Pre-signed N11 (Agreement to End Tenancy) at lease signing

Why They're Void: Tenants cannot waive their statutory rights under the RTA. Any attempt to do so is automatically void.

⚠️ Warning: Under Bill 184, landlords who give notices of termination in bad faith face fines up to 12 months rent PLUS the rent differential between the tenant's old and new unit for one year.

These clauses ARE enforceable and protect your property investment. Consider including them in every Section 15.

Professional comparison table infographic with two columns - Illegal Clauses (red header) and Legal Clauses (green header) - listing 8-10 examples in each column with icons, clean corporate design with Tenon10 branding colors

1. No-Smoking/Vaping Clause ✅

Why It's Enforceable: The RTA doesn't address smoking in individual units. Landlords can set these rules.

Copy-Paste Template:

SMOKING & VAPING POLICY Smoking of tobacco, cannabis, or other substances is prohibited inside the rental unit, including all balconies and patios. Vaping of any substance is prohibited inside the unit and on property grounds. The Tenant is responsible for ensuring that their guests comply with this policy. Violation of this policy may result in an N5 notice for substantial interference.

Important: Must be in the original lease. Cannot be added mid-tenancy without tenant consent.

2. Tenant Insurance Requirement ✅

Why It's Enforceable: Standard Lease Section 11 specifically allows this.

Copy-Paste Template:

TENANT INSURANCE The Tenant agrees to obtain and maintain tenant liability insurance with minimum coverage of $1,000,000 throughout the tenancy. Proof of coverage must be provided to the Landlord within 10 days of lease signing and upon each renewal. Content insurance is optional but recommended.
💡 Pro Tip: AVS Hospitality reports that requiring tenant insurance has helped avoid "over a dozen claims disputes since 2023." Require proof within 10 days of signing.

3. Maintenance Reporting Requirement ✅

Why It's Enforceable: Doesn't transfer maintenance responsibility—just requires communication.

Copy-Paste Template:

MAINTENANCE REPORTING The Tenant agrees to report any maintenance issues, damage, or repair needs in writing (email acceptable) to the Landlord within 48 hours of discovery. Failure to report issues promptly may result in the Tenant being held responsible for damages that worsen due to delayed reporting.

📋 Case Study: The Roof Leak Issue (AVS Hospitality)

A tenant didn't report a ceiling leak for 3 months. When the ceiling collapsed, the insurance claim was denied due to neglect. After adding a 48-hour reporting clause, the property manager prevented similar situations.

4. Pet Responsibility Clause ✅

Why It's Enforceable: You can't ban pets, but you CAN establish expectations.

Copy-Paste Template:

PET RESPONSIBILITY While pets are permitted under the Residential Tenancies Act, the Tenant acknowledges responsibility for: - Any damage caused by pets to the rental unit or common areas - Ensuring pets do not substantially interfere with other tenants' reasonable enjoyment - Compliance with municipal bylaws regarding pet ownership - Immediate cleanup of pet waste on property grounds The Tenant understands that pet-related damage or disturbance may result in an N5 notice.

5. Parking Rules ✅

Copy-Paste Template:

PARKING The Tenant is assigned parking space(s) #[X] for [number] vehicle(s). Vehicles must be registered, insured, and in operating condition. No commercial vehicles, boats, trailers, or recreational vehicles without prior written consent. Visitor parking is available in designated areas only. Unauthorized vehicles may be towed at the owner's expense.

6. Common Area Rules ✅

Copy-Paste Template:

COMMON AREAS The Tenant agrees to: - Use common areas (laundry, gym, pool, hallways) respectfully - Follow posted hours and capacity limits - Clean up after use - Not leave personal belongings in common areas - Report any damage or safety concerns immediately Violation of common area rules may constitute substantial interference under the RTA.

7. Move-In/Move-Out Procedures ✅

Copy-Paste Template:

MOVE-IN/MOVE-OUT Move-in and move-out must occur between 8:00 AM and 8:00 PM. The Tenant must book the elevator (if applicable) at least 48 hours in advance. A joint inspection will be conducted at move-in and move-out. The Tenant must return all keys/fobs on the last day of tenancy. Failure to return keys may result in forfeiture of key deposit.

8. Rent Control Exemption Notice ✅ (If Applicable)

Copy-Paste Template:

RENT CONTROL EXEMPTION NOTICE This rental unit was first occupied for residential purposes after November 15, 2018. In accordance with the Residential Tenancies Act, this unit is EXEMPT from the annual rent increase guideline. The Landlord is not limited to the guideline percentage when increasing rent. The Landlord must still provide 90 days written notice using Form N1 before any rent increase takes effect.

Grey Area Clauses: The Tricky Ones

Some clauses aren't clearly legal or illegal—they depend on HOW you implement them.

Illustrated comparison showing two paths: one path with checkmarks leading to a happy landlord-tenant handshake, another path with X marks leading to an LTB hearing room, clean modern illustration style with Ontario colors

1. Lawn Care / Snow Removal

The Rule: RTA Section 20 makes exterior maintenance the landlord's responsibility.

In the Lease: ❌ ILLEGAL

"Tenant responsible for lawn maintenance and snow removal"

Separate Contract: ✅ LEGAL

If you want the tenant to handle yard work, create a SEPARATE agreement (not attached to the lease) that offers compensation or rent reduction in exchange. This makes it a severable contract outside RTA jurisdiction.

2. Post-Dated Cheques

Cannot Require: ❌

"Tenant must provide 12 post-dated cheques as condition of lease"

Can Request: ✅

"The Landlord requests (but does not require) that the Tenant provide post-dated cheques for convenience."

3. Early Termination Provisions

Cannot Impose Penalties: ❌

"Early termination fee: 2 months rent"

Can Outline Process: ✅

"If the Tenant wishes to terminate the lease early, they must first request the Landlord's consent to assign the lease or, if refused, may give 30 days notice per RTA Section 95."

4. Condo Pet Rules

In Regular Rentals: ❌ Pet bans are VOID

In Condos: ✅ Condo corporation rules ARE enforceable

Copy-Paste Template (Condo):

CONDOMINIUM RULES The Tenant acknowledges that this rental unit is within a condominium corporation and agrees to comply with the Declaration, By-laws, and Rules of [Condo Corp Name]. A copy of relevant rules has been provided. The Tenant understands that condo rules regarding pets, noise, parking, and common areas are enforceable and violation may constitute grounds for an N5 notice.

Condo vs. Non-Condo: Different Rules Apply

In a typical apartment building, a "no pets" lease clause is void under RTA Section 14. But in a condominium, the condo corporation's declaration, bylaws, and rules CAN restrict or prohibit pets—and these ARE enforceable against tenants.

Side-by-side comparison chart showing Condo vs Non-Condo lease rules with icons representing pets, guests, deposits, and maintenance, using green checkmarks and red X marks to show what's enforceable in each scenario

Key Distinction

Scenario Pet Ban Enforceable?
Lease clause says "no pets" (non-condo) ❌ No
Lease clause says "no pets" (condo) ❌ No
Condo declaration prohibits pets ✅ Yes
Condo rules limit pet size/number ✅ Yes

The Enforcement Mechanism

  • Condo rules are enforced through the Condominium Authority Tribunal (CAT)
  • Tenants work through their landlord (the unit owner) for disputes
  • Violation of condo rules CAN lead to N5 notice for substantial interference

Best Practice for Condo Landlords

  1. Provide tenants with a copy of relevant condo rules
  2. Include acknowledgment clause in Section 15
  3. Specify which rules relate to pets, noise, parking, etc.
  4. Keep condo rule documents as part of the lease file

What Happens If You Try to Enforce an Illegal Clause

If your lease contains an illegal clause, the illegal clause is unenforceable (as if it doesn't exist), the rest of the lease remains valid, and you cannot evict or penalize based on the void clause.

"An unenforceable clause doesn't void the entire lease agreement." — Soccio Marandola LLP

LTB Outcomes

When tenants challenge illegal clauses at the LTB:

Illegal Deposit Cases:

  • Landlord ordered to return full deposit amount
  • Interest added from date of collection
  • Filing fees may be added
  • No "partial enforcement"

Illegal Restriction Cases (pets, guests, etc.):

  • Clause declared void
  • Tenant's rights affirmed
  • Landlord may face administrative fines for harassment if they attempted enforcement

Potential Penalties

Violation Consequence
Collecting illegal deposit Full refund + interest ordered
Attempting to enforce void clause Clause ignored by LTB
Harassment over void clause Up to $35,000 administrative fine
Bad faith eviction Up to 12 months rent + differential
Illegal eviction (individual) Up to $50,000 fine
Illegal eviction (corporation) Up to $250,000 fine
⚠️ Warning: Including illegal clauses doesn't just waste paper—it signals to informed tenants that you may not understand the RTA. This can lead to contentious tenancies and increased LTB applications.

Pre-Signing Compliance Checklist

Before Every Lease Signing, Verify:

  • ☐ Using official December 2020 Standard Lease form
  • ☐ All 15 mandatory sections completed correctly
  • ☐ No alterations to pre-printed sections
  • ☐ Section 15 terms written in plain language (10+ point font)
  • ☐ NO "no pets" clauses (unless condo with rules attached)
  • ☐ NO damage/security/pet deposit clauses
  • ☐ Key deposit = actual replacement cost only
  • ☐ Last month rent deposit = max 1 month rent
  • ☐ NO post-dated cheques required (request only)
  • ☐ NO roommate/guest restrictions
  • ☐ NO repair deductibles or maintenance transfers
  • ☐ Rent control exemption documented (if applicable)
  • ☐ Condo rules attached (if applicable)
Square format checklist graphic titled Section 15 Compliance Checklist with 5-6 key items and checkboxes, Tenon10 branding, dark navy blue background with white and gold text

Quick Wins (Implement Today)

  1. Add a no-smoking clause to every new lease
  2. Require tenant insurance with proof within 10 days
  3. Add maintenance reporting requirements (48-hour rule)
  4. Document move-in/out procedures to prevent disputes
  5. For condos: Always attach corporation rules

Long-Term Strategy

  1. Audit existing leases for illegal clauses
  2. Create a Section 15 template with your standard legal terms
  3. Build a separate lawn care contract if you want tenant to maintain exterior
  4. Review condo rules annually for changes affecting tenants
  5. Use Tenon10's Lease Builder to generate compliant leases automatically
📋

Section 15 Compliance Checklist: Legal vs Illegal Clauses

Pre-signing checklist to verify your Ontario Standard Lease is compliant. Includes 15+ illegal clauses to avoid and 10+ legal clauses to include.

Get Free PDF →

Key Takeaways

Ontario's Standard Lease limits your customization to Section 15—but that one section can make or break your landlord experience.

The key principles:

  • Any clause that contradicts the RTA is automatically void, even if signed
  • You CANNOT ban pets, restrict guests, or collect damage deposits
  • You CAN require no-smoking, tenant insurance, and clear maintenance reporting
  • Condo rules ARE enforceable—but only through the condo declaration, not your lease

The landlords who succeed in Ontario aren't those who try to sneak illegal clauses past tenants. They're the ones who maximize the legal protections available in Section 15 while building clear, professional tenant relationships.

Ready to Build Bulletproof Lease Agreements?

Tenon10's Lease Builder automatically generates Ontario-compliant Standard Leases with customizable Section 15 terms—no legal expertise required.

Try the Lease Builder Free →

Free • No signup required • Bill 60 compliant

Frequently Asked Questions

Can a tenant break their lease if I included an illegal clause?

No. An illegal clause is simply void—it doesn't invalidate the entire lease. The tenant remains bound by all legal provisions. However, if the clause relates to deposits, the tenant can demand their money back and potentially file with the LTB for interest and costs.

What if my tenant agreed to a "no pets" clause and signed it?

The clause is still unenforceable. RTA Section 14 makes all pet prohibition clauses void "regardless of any agreement to the contrary." If the tenant later gets a pet, you cannot evict them solely for having it. You CAN take action if the pet causes damage or substantially interferes with other tenants.

Can I add new rules during an existing tenancy?

Not without the tenant's written consent. You cannot unilaterally add restrictions mid-tenancy. At lease renewal, you can offer a new lease with additional terms, but the tenant can refuse and continue on a month-to-month basis under the original terms.

Is there a limit to how many additional terms I can include in Section 15?

There's no legal limit, but practical wisdom suggests keeping it reasonable. A 30-page addendum may scare away quality tenants who will assume you're difficult to work with. Focus on the most important protections: smoking, insurance, maintenance reporting, and property-specific rules.

Do post-November 2018 buildings still need to use the Standard Lease?

Yes. The Standard Lease is required for all residential tenancies regardless of when the building was constructed. Post-November 15, 2018 buildings are only exempt from RENT CONTROL (the annual guideline limit), not from the lease form itself. You can note the rent control exemption in Section 15.

Can I require tenants to pay for professional cleaning at move-out?

No. You cannot require tenants to pay for cleaning or use specific cleaning services. Tenants must return the unit in "ordinary cleanliness" considering normal wear and tear. You CAN charge for damage beyond normal wear, but only through an LTB application—not as a lease requirement or deposit deduction.

Tenon10 Research Team

Written by

Tenon10 Research Team

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Our research team delivers timely, accurate real estate insights.

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