Residential Tenancies Act (RTA) Essentials for Ontario Realtors

What the RTA is and what it covers

The Residential Tenancies Act, 2006 (RTA) is Ontario's law governing most residential landlord-and-tenant relationships. It sets the rules for rent, deposits, maintenance, entry, notices, and ending a tenancy, and it establishes the Landlord and Tenant Board (LTB) as the tribunal that resolves disputes and orders remedies (including eviction).

The RTA applies to most private residential rentals — houses, apartments, condominium units rented to tenants, secondary/basement units, care homes, mobile homes, and land-lease communities.

Common exemptions

Some living arrangements fall outside the RTA (or outside parts of it). These commonly include:

Accommodation where the tenant shares a kitchen or bathroom with the owner (or the owner's close family) who also lives there.
Most commercial tenancies.
Certain social/supportive housing, co-operative housing units, and some institutional/transitional settings that are handled under different rules.

Because exemptions are fact-specific and can determine whether the LTB even has jurisdiction, treat any borderline situation as one for a lawyer or paralegal to confirm. Do not tell a client a unit is "RTA-exempt" without that confirmation.

Rent rules and the annual rent increase guideline

How often and how much rent can go up

For a continuing tenant, rent can generally be increased only once every 12 months, and at least 12 months must have passed since the tenancy began or since the last increase. The landlord must give written notice at least 90 days before the increase takes effect, using the LTB's proper form (Form N1 for guideline increases).

Ontario sets an annual rent increase guideline — the maximum percentage a landlord can raise rent for most existing tenants without LTB approval.

Guideline figures (verify current at ontario.ca/page/residential-rent-increases):

2025: 2.5%
2026: 2.1%
2027: 1.9%

Ontario announces each year's guideline the preceding year, so confirm the number for the year the increase actually takes effect. The guideline is tied to the Ontario Consumer Price Index and is capped by legislation.

Units the guideline does NOT cover

The guideline does not apply to new buildings, additions, and most new basement/secondary units first occupied for residential purposes after November 15, 2018. It also does not restrict the rent a landlord and a new tenant negotiate on turnover (Ontario has vacancy decontrol — rent can be reset for a new tenancy, then guideline rules apply going forward).

Above-guideline increases (AGI)

A landlord can apply to the LTB for an above-guideline increase in limited circumstances (for example, significant eligible capital work or large municipal tax/utility cost increases). AGIs require LTB approval; a landlord cannot simply charge more than the guideline. The exact caps and qualifying grounds are set by regulation — verify current rules before advising.

Deposits: what a landlord may and may not collect

Ontario is strict here, and it is a frequent source of confusion. Under the RTA a landlord may collect only:

A rent deposit — equal to at most one month's rent (or one rental period). By law this deposit can be used only for the last month's rent of the tenancy. It cannot be applied to damage, cleaning, or arrears during the tenancy.
A refundable key deposit — allowed only if it is refundable and no more than the actual replacement cost of the keys/fobs. It must be returned when the keys are returned.

Not permitted in Ontario: separate damage deposits, security deposits, pet deposits, cleaning deposits, or non-refundable "last month plus damage" charges. A landlord asking for these is offside the RTA. This is a key point for realtors preparing or reviewing leases — the common practice in some other provinces (a damage/security deposit) is illegal here.

Interest on the rent deposit

The landlord must pay the tenant interest on the rent deposit every year. The interest rate equals the rent increase guideline for that year (verify current). In practice this is often applied by topping up the deposit so it stays equal to current rent, or by paying the interest to the tenant.

The Ontario Standard Lease (Form 2229E)

The requirement

Since April 30, 2018, landlords of most private residential units must use Ontario's Standard Lease — the Residential Tenancy Agreement (Standard Form of Lease), Form 2229E, published by the Ministry of Public and Business Service Delivery (available through the Ontario Central Forms Repository, forms.mgcs.gov.on.ca). The mandatory sections cannot be altered to remove RTA rights, and any additional terms cannot conflict with the RTA.

The Standard Lease does not apply to certain tenancies, including care homes, mobile-home parks and land-lease communities, most social/supportive housing, co-operative housing, and some other special tenancies. For those, other rules govern the written agreement.

Consequences of not providing the Standard Lease

If a tenancy requires the Standard Lease and the landlord did not give one, the tenant can request it in writing. Then:

The landlord has 21 days to provide the Standard Lease.
If the landlord does not provide it within those 21 days, the tenant may withhold one month's rent.
If the landlord still does not provide it within another 30 days, the tenant is not required to repay that withheld month.
The tenant may never withhold more than one month's rent, and must keep paying rent otherwise.
In addition, if the Standard Lease is not provided after a written request, the tenant may have the right to end a fixed-term tenancy early on 60 days' notice.

For a realtor, the takeaway is simple: use Form 2229E for covered residential tenancies and deliver it promptly. Failing to do so creates real financial and tenancy-stability exposure for the landlord client.

Landlord and Tenant Board (LTB) basics

The LTB, part of Tribunals Ontario, is the body that resolves RTA disputes and can order rent abatements, repairs, payment of arrears, and eviction. It is generally the exclusive forum for residential landlord-tenant matters — parties usually cannot go straight to court.

How a typical matter flows

Notices come first. To end a tenancy or claim arrears, the landlord serves the correct notice form on the tenant (for example, N4 — Notice to End your Tenancy Early for Non-payment of Rent). Each ground has its own notice and timeline.
Then an application. If the tenant does not resolve the issue (e.g., pay the arrears in the N4), the landlord files an application with the LTB (for example, L1 to evict for non-payment and collect arrears). Tenants have their own application forms (e.g., T2, T6) for their claims.
Hearing. The LTB holds a hearing before an adjudicator (a Member); many hearings are held by videoconference (Zoom). Each side presents evidence; the Member issues an order.
Enforcement. Only the LTB can order an eviction, and only the Court Enforcement Office (Sheriff) can physically enforce it — a landlord cannot lawfully change locks or remove a tenant on their own ("self-help" eviction is prohibited).

Forms, filing, and current fees are on the Tribunals Ontario website (tribunalsontario.ca/ltb) and the Tribunals Ontario Portal. Fee amounts and processing timelines change — verify current at tribunalsontario.ca.

Quick reference for realtors

Rent up once/12 months, 90 days' notice, Form N1, capped at the guideline (2025: 2.5% / 2026: 2.1% / 2027: 1.9% — verify current).
Only legal deposits: last month's rent (max one month, used only for last month) + refundable key deposit (at cost). No damage/security/pet deposits.
Interest owed yearly on the rent deposit (rate = the guideline — verify current).
Form 2229E Standard Lease is mandatory for most tenancies; not providing it can let the tenant withhold and ultimately keep a month's rent.
LTB is the forum; notice → application → hearing → order; no self-help evictions.

Always confirm any figure, form number, or timeline against the live ontario.ca / tribunalsontario.ca pages before relying on it, as these are updated periodically.