How to Manage a Rental Property in Ontario: Landlord Guide
By Summitly Editorial·Reviewed by Coldwell Banker Summit Realty, a RECO-registered Ontario brokerage
Quick answer
Managing a rental property in Ontario means pricing it competitively, marketing it well, screening tenants legally under the Ontario Human Rights Code, and using the mandatory Residential Tenancies Act standard lease. As a landlord you can collect first and last month's rent (but not a damage deposit), must keep the unit in good repair, can raise rent only once a year within the provincial guideline for most units, and must follow the Landlord and Tenant Board (LTB) process to end a tenancy. Summitly's rental tools help you handle listing, screening and ongoing management in one place.
Pricing your rental for the Ontario market
The first decision in managing a rental property is setting the right rent. Price too high and your unit sits vacant, eroding your return with every week it stays empty; price too low and you leave money on the table that is hard to recover, because Ontario's rules generally limit how much and how often you can raise rent later. The goal is a number that reflects genuine local market value on the day you list.
Build your price from comparable units in the same area: similar bedroom and bathroom counts, similar square footage, comparable condition and finishes, and similar access to transit, parking and amenities. Factor in what is included in the rent, such as utilities, heat, water, internet or a parking spot, since an all-inclusive unit commands a higher headline rent than one where the tenant pays everything separately. Seasonality matters too; demand in many Ontario markets is stronger in late spring and summer than in the depths of winter.
Because the rent you set at the start of a tenancy effectively anchors what you can charge that tenant for years, it is worth getting it right rather than guessing. Summitly's rental pricing tools draw on local rental activity so you can benchmark your unit against current comparables instead of relying on a stale number from a friend or a neighbour.
- Compare bedroom/bathroom count, size, condition and location
- Adjust for what is included: utilities, parking, internet, appliances
- Account for seasonality and current vacancy in your area
- Remember the starting rent anchors future increases under the guideline
Listing and marketing your unit
A strong listing fills your unit faster and attracts better-qualified applicants. Lead with clean, well-lit photos of every room, plus the kitchen, bathroom and any outdoor space or parking. A short video walkthrough or floor plan helps serious renters self-select before they ever book a viewing, which saves you time on no-shows and unqualified leads.
Write a description that is specific and honest: the neighbourhood and nearby transit, the number of bedrooms and bathrooms, what is included in rent, laundry arrangements, pet policy, and the available move-in date. Avoid any wording that could screen people out based on protected grounds under the Ontario Human Rights Code, such as language implying a preference about family status, religion, ethnic origin or disability. Stick to the objective features of the unit and the legitimate financial criteria you apply equally to every applicant.
Summitly lets you list your rental and reach renters browsing for homes in your area. You can publish your unit through /landlords/list-your-rental, and prospective tenants can discover it alongside other available rentals at /rentals.
- Use bright, comprehensive photos and a floor plan or video
- State inclusions, laundry, pets and move-in date clearly
- Avoid wording that screens on Human Rights Code grounds
- Publish through /landlords/list-your-rental and reach renters at /rentals
Screening tenants legally: what you can and cannot ask
Tenant screening in Ontario must respect the Ontario Human Rights Code. You are entitled to assess whether an applicant can reasonably afford and care for the unit, but you cannot reject or treat applicants differently on protected grounds including race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, age, marital status, family status, disability or receipt of public assistance.
What you can do is apply consistent, business-related criteria to everyone. You may ask for a rental application, request a credit check with the applicant's written consent, verify income and employment, and contact current and former landlords for references. Provincial guidance recognizes that landlords can consider income information, credit references and rental history, and may consider these together, but you must not use income alone as an automatic cut-off in a way that effectively discriminates. The safest approach is a written, uniform process that every applicant goes through identically.
Summitly's tenant screening tools at /landlords/tenant-screening help you collect applications and run consent-based checks in a structured, repeatable way, which both speeds up your decision and creates a consistent paper trail that supports compliance.
- You may verify income, employment, credit (with consent) and references
- You cannot discriminate on Human Rights Code protected grounds
- Apply identical criteria to every applicant and document the process
- Do not use income as a rigid sole cut-off that discriminates in effect
Using the Ontario standard lease
For most private residential tenancies in Ontario, landlords are required to use the government's standard lease, also called the standard form of lease, when entering into a new tenancy. The standard lease sets out the names of the parties, the rent amount and due date, what is included, rules and any additional terms, in plain language designed to reduce disputes.
If you do not provide the standard lease, the tenant has the right to ask for it in writing, and there are specific consequences under the Residential Tenancies Act if you fail to provide it within the required timeframe, which can include the tenant's right to withhold rent or end the tenancy early in certain circumstances. Because the exact rules and any exemptions can change, confirm the current requirements and download the latest version of the standard lease from Ontario.ca before you sign anyone.
Any custom rules you add must not conflict with the Residential Tenancies Act. A term that tries to waive a tenant's legal rights, such as a blanket 'no pets' clause used to evict, is generally unenforceable, so it is worth understanding which of your house rules actually hold up.
- Most new tenancies require the official Ontario standard lease
- Tenants can demand it in writing if it was not provided
- Added terms cannot override the Residential Tenancies Act
- Always download the current version from Ontario.ca
Rent, last month's rent and why there are no damage deposits
Ontario rules on deposits surprise many new landlords. You may collect a rent deposit equal to no more than one rental period's rent, which for a monthly tenancy is one month and is applied to the last month of the tenancy, commonly called last month's rent. You are required to pay the tenant interest on that deposit each year, at a rate tied to the rent-increase guideline; confirm the current rate with the LTB or Ontario.ca rather than assuming a figure.
Crucially, damage deposits are not permitted in Ontario. You cannot collect a separate security or 'damage' deposit, a cleaning deposit, or key deposits beyond the actual replacement cost of the keys. If a tenant causes damage beyond normal wear and tear, your remedy is to apply to the Landlord and Tenant Board, not to seize a deposit you were never allowed to hold.
Collect rent through a consistent, documented method and keep clear records of every payment and the last-month-rent deposit and its interest. Summitly's rental management tools help you track rent, deposits and payment history so your records are clean if a dispute ever reaches the LTB.
- Last month's rent deposit is capped at one rental period's rent
- You must pay annual interest on the deposit at the prescribed rate
- Damage, cleaning and inflated key deposits are not allowed
- Recover damage through the LTB, not by withholding a deposit
Maintenance and repair responsibilities
Under the Residential Tenancies Act, the landlord is responsible for keeping the rental unit and the building in a good state of repair, fit for habitation, and compliant with health, safety, housing and maintenance standards, even if the tenant knew about an issue before moving in. This duty covers structural elements, heating, plumbing, electrical systems, and appliances you supplied as part of the tenancy.
Tenants are responsible for ordinary cleanliness and for repairing or paying for damage they or their guests cause through wilful or negligent conduct, as distinct from normal wear and tear. Building a simple system for tenants to report issues, and responding promptly, prevents small problems from becoming expensive emergencies and reduces the risk of a tenant applying to the LTB over maintenance.
Keep dated records of every repair request and what you did about it. A documented maintenance trail protects you if a tenant later claims the unit was not properly maintained, and it makes turnover between tenancies far smoother.
- Landlords must keep the unit fit for habitation and to code
- Tenants cover damage they cause beyond normal wear and tear
- Respond to repair requests promptly and in writing
- Document every request and resolution with dates
Rent increases and the guideline
In Ontario, for most existing tenancies you can raise the rent only once every twelve months, and you must give the tenant proper written notice using the official rent-increase notice form, generally at least 90 days before the increase takes effect. For units covered by the rules, the increase is limited to the annual rent-increase guideline set by the province.
The guideline percentage changes each year and some units, such as certain newer buildings first occupied after a cut-off date, may be exempt from the guideline cap, though the once-a-year and notice rules still apply. Because both the guideline figure and the exemption rules can change, never quote a fixed percentage from memory; check the current guideline and whether your unit is exempt on the LTB or Ontario.ca before issuing any increase.
Above-guideline increases are possible only in specific situations, such as certain capital expenditures, and require an application to and an order from the Landlord and Tenant Board. You cannot simply charge more because the market has moved.
- Generally one increase per 12 months with at least 90 days' notice
- Most units are capped at the provincial guideline percentage
- Some newer units are exempt from the cap but not the notice rules
- Verify the current guideline and exemptions on the LTB/Ontario.ca
Ending a tenancy, N-forms and the LTB process
Ontario does not allow 'no-fault, no-reason' evictions. To end a tenancy you must have a lawful ground and use the correct official notice. For non-payment of rent you serve the N4; for other tenant conduct issues there are forms such as the N5; and where the landlord, a purchaser or a family member genuinely intends to move in, the N12 applies, often with a required compensation payment. Each form has its own notice period and rules, so use the right one for the situation.
Serving a notice does not by itself end the tenancy or remove the tenant. If the tenant does not comply or move out, the landlord must apply to the Landlord and Tenant Board, and only the LTB can issue an order; only the Sheriff can enforce an eviction. Self-help measures such as changing the locks, removing the tenant's belongings or shutting off utilities are illegal and can expose you to serious penalties.
Because forms, timelines and fees change and the consequences of getting it wrong are severe, confirm the current N-forms and procedures with the LTB before acting, and consider professional advice for contested matters.
- Use the correct N-form for the specific lawful ground
- Notice alone does not evict; you must apply to the LTB
- Only the LTB can order, and only the Sheriff can enforce, an eviction
- Lockouts, utility shut-offs and self-help evictions are illegal
Self-managing versus using Summitly's rental tools
Self-managing gives you full control and saves on fees, but it means handling pricing, marketing, screening, leases, rent collection, maintenance coordination and compliance yourself, and staying current as the rules evolve. For a single unit with a stable tenant this can be manageable; as your portfolio grows, the administrative load and compliance risk grow with it.
Summitly is a technology platform built to make self-managing far easier. You can price and list your rental, screen applicants with consent-based checks, organize lease and tenant information, and track rent and maintenance in one place, while still keeping control of every decision. Start at /landlords, screen tenants at /landlords/tenant-screening, and publish your unit at /landlords/list-your-rental.
Whichever route you choose, the fundamentals are the same: price to the real market, screen consistently and lawfully, use the standard lease, follow the deposit and rent-increase rules, maintain the unit, and go through the LTB for any dispute. Get those right and rental management becomes a repeatable system rather than a series of emergencies.
- Self-managing saves fees but concentrates all the work and risk on you
- Summitly centralizes pricing, listing, screening and tracking
- You keep control while reducing administrative overhead
- Start at /landlords and screen at /landlords/tenant-screening
Key takeaways
- Price from current local comparables; the starting rent anchors future increases under the guideline.
- Screen consistently and lawfully: verify income, credit (with consent) and references, but never discriminate on Human Rights Code grounds.
- Use the Ontario standard lease, collect only last month's rent with interest, and never a damage deposit.
- You must keep the unit in good repair; raise rent only once a year with proper notice within the guideline for most units.
- End a tenancy only on lawful grounds using the right N-form, and go through the LTB. Never lock out a tenant.
- Verify current figures, guideline percentages and forms with the LTB or Ontario.ca, since they change.
Frequently asked
Can I collect a damage deposit in Ontario?+
No. Ontario does not permit damage, security or cleaning deposits. You may collect a rent deposit of no more than one rental period's rent, applied to the last month, and you must pay annual interest on it. To recover damage beyond normal wear and tear, you apply to the Landlord and Tenant Board.
How often can I raise the rent?+
For most tenancies you can increase rent only once every twelve months, with at least 90 days' written notice on the official form, and most units are capped at the annual provincial guideline. Some newer units may be exempt from the cap. Always confirm the current guideline and exemptions with the LTB or Ontario.ca.
Do I have to use the Ontario standard lease?+
For most new private residential tenancies, yes. If you do not provide the standard lease, the tenant can demand it in writing, and there are consequences under the Residential Tenancies Act for failing to provide it in time. Download the current version from Ontario.ca before signing.
What can I legally ask a prospective tenant?+
You can request a rental application, run a credit check with written consent, verify income and employment, and check landlord references, applied equally to every applicant. You cannot reject or treat applicants differently based on Human Rights Code grounds such as family status, disability, age or receipt of public assistance.
Can I evict a tenant on my own?+
No. You must have a lawful ground, serve the correct N-form, and, if the tenant does not comply, apply to the Landlord and Tenant Board. Only the LTB can order an eviction and only the Sheriff can enforce it. Changing locks or removing belongings yourself is illegal.