July 7, 2020
Rental Prices in Ontario- What Every Landlord Must Know

If you’re a landlord in Ontario, there are many things that you should know. Renting involves a lot of rules and regulations; plus, every state has its own set of rules.

If you’re a landlord in Ontario, there are many things that you should know. Renting involves a lot of rules and regulations; plus, every state has its own set of rules. As a property owner, you must apply the right rent payment rules in compliance with the law, otherwise, you could get into trouble. Here are some of the things you should know:

Landlords and Security Deposits

Landlords are not allowed to charge a security deposit or any amount of money even if it’s refundable. The only deposit that landlords can collect is a deposit on the last month’s rent.

Rent Deposits

Landlords in Ontario can collect a deposit to cover the last month of rent, but it can’t be used to cover damages or for any other purposes. Should there be damages to the property, the landlord must file an application against the tenant to collect money for the damage.

Rent Deposits Interest

Landlords need to pay interest on rent deposits under the Ontario Residential Tenancies Act. The interest rate is the same as the rent increase guideline in the same year. Conversely, landlords may opt to apply the interest to last month’s rent deposit.

Post-Dated Cheques & Direct Debit

Landlords in Ontario are not allowed to demand post-dated cheques or direct debit from tenants. That said, how the rent is paid will rely on the agreement between the landlord and the tenant.

Rent Receipts

Landlords must provide rent receipts of any money that is paid as part of the rent. The landlord is not allowed to charge for receipts.

Rent Increase

If you own a rental property in Ontario, you can only increase the rent amount once a year. However, before you do so, you will need to provide 90 days of written notice following the form provided by the Ontario Landlord and Tenant Board before the increase takes effect. Should it come in the wrong format or the landlord provides less than 90 days written notice, the increase will not apply. Every year, Ontario landlords can increase the rent amount by up to 1.8 percent of the current rent.

Additionally, landlords in Ontario can increase the rent amount for repairs or renovations. However, landlords must go through the Landlord and Tenant Board or the landlord can discuss this with the tenant and put it in writing. This applies if the landlord provides the rental unit with specific improvements and services including cable or satellite TV, extra electricity for appliances, heat, and additional floor space.

The increase in rent should not exceed more than the Rent Increase Guideline plus 3 percent. If the tenant agrees with the increase, there is no need for the landlord to issue 90 days written notice.

Another thing to keep in mind when it comes to rental increase is that the landlord can’t increase the amount of rent if another person moves into the property. Landlords who charge for extra will be in violation of the tenant’s rights. There is an exception, though. When the unit becomes overcrowded, the landlord can terminate the tenancy.


If you are a landlord in Ontario, abiding by the rent payment rules is a must, while tenants must be mindful of these laws to ensure that they are paying the right rent amount. If you need additional assistance to exercise your rights or familiarize yourself with the guidelines, working with a property manager is a smart solution.

Need help with property rentals in Ontario? Trust a reliableproperty managementcompany such as Fahel & Co. Get in touch with us today so we can take care of your property!