Quick Answer: Most private residential leases in Ontario must use the government's Standard Lease (Form 2229E). A landlord may collect a rent deposit (applied to the last month) and a key deposit, but not a damage/security deposit. Rent increases for most units are capped by the annual provincial rent increase guideline with proper notice, and the tenancy is governed by the Residential Tenancies Act (RTA) via the Landlord and Tenant Board (LTB). Read the whole lease before you sign.
The Ontario Standard Lease is mandatory
For most residential tenancies, landlords must provide the Ontario Standard Lease (Form 2229E). If you ask in writing and the landlord doesn't provide it within the required timeframe, you may have specific remedies under the RTA. The Standard Lease spells out rent, term, services included, rules, and both parties' responsibilities in plain language.
Deposits: what's legal in Ontario
- ✅ Rent deposit — usually last month's rent, must be applied to the final month.
- ✅ Key deposit — refundable, limited to the reasonable cost of replacement.
- ❌ Damage/security deposit — not permitted in Ontario.
- The rent deposit must earn interest annually at the rent-increase guideline rate.
Fixed-term vs month-to-month
- A fixed-term lease (commonly 12 months) locks the rate for the term.
- At the end of a fixed term, the tenancy usually continues month-to-month automatically — you don't have to sign a new lease to stay.
- Confirm renewal and notice rules in the lease before signing.
Rent increases
For most units first occupied before the provincial cut-off, increases are limited to the annual rent increase guideline and require proper written notice (typically 90 days, once every 12 months). Some newer units may be exempt from the guideline — ask before you sign and budget accordingly.
Furnished vs unfurnished
| Furnished | Unfurnished | |
|---|---|---|
| Monthly cost | Higher | Lower |
| Best for | Short/medium stays, relocations | Long-term, you own furniture |
| Watch for | Inventory list, damage terms | Move-in/move-out logistics |
If furnished, get a written inventory and photos at move-in to avoid disputes later.
Tenant move-in checklist
- Read the full Standard Lease; keep a signed copy.
- Confirm what's included (utilities, parking, appliances, internet).
- Document the unit's condition with dated photos.
- Set up tenant insurance (often required).
- Confirm how/when rent is paid and how maintenance requests are handled.
- Know your LTB rights for repairs, entry notice, and disputes.
Your rights, in brief
- Protection from eviction except through proper RTA processes and the LTB.
- 24-hour written notice for most landlord entry.
- Protection under the Ontario Human Rights Code — landlords can't discriminate on protected grounds, including source of income.
Leasing in the GTA
Looking for a lease in Milton or nearby? Start with the Milton lease page or compare rentals across the GTA.
FAQ
Can a landlord ask for first and last plus a damage deposit? First and last (the rent deposit) is allowed; a separate damage deposit is not legal in Ontario.
Do I have to sign a new lease after 12 months? No — most tenancies continue month-to-month automatically on the same terms.
Where do I go if there's a dispute? The Landlord and Tenant Board (LTB) handles residential tenancy disputes in Ontario.
Need help leasing with confidence? Browse homes for lease in Milton or talk to a ClickHomes AI expert.
ClickHomes AI Research Team
Real estate market research and analysis team at ClickHomes AI, covering Toronto and the Greater Toronto Area with daily TREB/MLS data insights.
