How to set up a rental property in Ontario
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Facts checked September 2026 · See what changed · How we check
A step-by-step guide for first-time landlords in Ontario, mandatory lease form requirements, deposit rules, inspection obligations, licensing, and rent-increase rules. Free downloadable checklist included.
Important: read this first
Ontario does NOT allow a security or damage deposit: only Last Month's Rent (max 1 month). You must pay annual interest on the LMR at the rent increase guideline rate.
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Ontario at a glance
Open this section ↓Official LTB website →↑ Close this sectionMandatory lease form
Standard Form of Lease (Form 2229E)
Move-in inspection
Not required
Deposit
Last Month's Rent only
Rent control
Yes
Tribunal
Landlord and Tenant Board (LTB)
Legislation
Residential Tenancies Act, 2006
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Step 1: Written lease
Open this section ↓↑ Close this sectionMandatoryStandard Form of Lease (Form 2229E)
Required for most private residential tenancies since April 30, 2018. If you do not provide it within 21 days of a tenant request, the tenant may withhold one month's rent.
Exemptions: care homes, mobile-home parks, most social housing, and co-operatives.
Download the form →3
Step 2: Landlord insurance
Open this section ↓↑ Close this sectionGet a rental-dwelling policy before the tenancy starts
A standard homeowner policy typically excludes rental income and damage caused by tenants. Rental properties are covered by a rental-dwelling (landlord) policy instead.
Partner · Guidepost earns a commissionSquare One quotes landlord insurance online in Ontario.
Consider requiring your tenant to carry liability insurance as a condition of the lease. This is not required by law in Ontario but is common practice.
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Step 3: Municipal licensing
Open this section ↓↑ Close this sectionNo provincial licence required in Ontario
There is no provincial landlord registration or licence anywhere in Canada. However, some cities and municipalities require a rental or business licence before you can rent a property. Check with your city or municipality before putting a tenant in.
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Step 4: Move-in condition report
Open this section ↓↑ Close this sectionNot requiredNo provincially required move-in inspection form in Ontario. A written record of the unit's condition is still recommended as evidence for any future deposit dispute.
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Step 5: Security deposit
Open this section ↓↑ Close this sectionLast Month's Rent only: no security or damage deposit
Only Last Month's Rent (LMR) is allowed. No security deposit, no damage deposit.
Interest: Interest must be paid annually at the rent increase guideline rate: verify the current guideline at ontario.ca.
Verify current rate →7
Step 6: Rent increases and notice rules
Open this section ↓↑ Close this sectionNotice required for a rent increase
90 days' written notice before effective date using Form N1
Full notice & rent rules for Ontario →Rent control
Rent increase guideline applies to units first occupied before November 15, 2018. Units built after that date are exempt.
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Step 7: Records and receipts
Must give rent receipts free on request (Residential Tenancies Act s.109).Open this section ↓↑ Close this sectionMust give rent receipts free on request (Residential Tenancies Act s.109).
Keep copies of: the signed lease, deposit receipt, condition report(s), rent payment records, notice letters, and all correspondence with your tenant.
Tribunal: Landlord and Tenant Board. https://tribunalsontario.ca/ltb/
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Your Ontario landlord setup checklist
Open this section ↓↑ Close this sectionOntario: New Landlord Setup Checklist 8 steps to set up your first rental property correctly
Read this first
Ontario does NOT allow a security or damage deposit: only Last Month's Rent (max 1 month). You must pay annual interest on the LMR at the rent increase guideline rate.Step 1: Written lease
Use the mandatory Standard Form of Lease (Form 2229E).Download: https://www.ontario.ca/page/guide-ontarios-standard-leaseBoth parties sign and keep a copy.Step 2: Landlord insurance
Get a rental-dwelling policy (NOT a homeowner policy) before the tenancy starts.Homeowner policies typically exclude rental income and tenant-caused damage.Consider requiring tenant liability insurance as a lease term.Step 3: Municipal licensing
No provincial landlord licence required in Ontario.Check with your city or municipality: some require a rental or business licence.Step 4: Tenant screening
Run a credit check and reference check with written consent from the tenant.Handle personal information per privacy law (PIPEDA or provincial equivalent).Human rights law applies: you may not discriminate on protected grounds.Step 5: Move-in condition report
No provincially required move-in inspection form in Ontario. A written record of the unit's condition is still recommended as evidence for any future deposit dispute.Both parties sign and date. Each keeps a copy. Attach dated photos.Step 6: Security deposit
Only Last Month's Rent (LMR) is allowed. No security deposit, no damage deposit.Interest: Interest must be paid annually at the rent increase guideline rate: verify the current guideline at ontario.ca.Step 7: Rent increases & notice rules
Notice required: 90 days' written notice before effective date using Form N1Rent increase guideline applies to units first occupied before November 15, 2018. Units built after that date are exempt.Landlord and Tenant Board: https://tribunalsontario.ca/ltb/Step 8: Records & receipts
Must give rent receipts free on request (Residential Tenancies Act s.109).Keep: signed lease, deposit receipt, condition report(s), rent payment records, all correspondence.Dispute body: Landlord and Tenant Board, https://tribunalsontario.ca/ltb/General information only, not legal advice. Verify all requirements with your province's Landlord and Tenant Board.
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Frequently asked questions
Open this section ↓Do I need to use a specific lease form in Ontario?
Yes. Ontario requires the Standard Form of Lease (Form 2229E). Required for most private residential tenancies since April 30, 2018. If you do not provide it within 21 days of a tenant request, the tenant may withhold one month's rent.
What deposit can I collect in Ontario?
In Ontario, only a Last Month's Rent deposit is allowed: no security or damage deposit. Only Last Month's Rent (LMR) is allowed. No security deposit, no damage deposit.
Is a move-in inspection report required in Ontario?
No provincially required move-in inspection form in Ontario. A written record of the unit's condition is still recommended as evidence for any future deposit dispute.
Do I need a landlord licence in Ontario?
There is no provincial landlord licence required in Ontario. However, some municipalities require a rental or business licence. Check with your city or municipality.
What are the rent-increase rules in Ontario?
Notice required: 90 days' written notice before effective date using Form N1. Rent increase guideline applies to units first occupied before November 15, 2018. Units built after that date are exempt.
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Related guides
Open this section ↓
Facts checked September 2026
More than one unit? The Landlord Pass
Prepare the rent increase notices on this page for every property you hold, with the dates checked against the province rule that governs each one, and an alert when one of them moves.
$16 a month or $149 a year. Single documents stay available without an account.
What the Pass doesGuidepost is not a law firm. This guide is for general information only. Full disclaimer
Informational guide only. Guidepost is not a law firm. This guide explains the typical process and is not legal advice. Requirements can change. Verify current rules with the relevant government authority or a qualified professional before you act.