Common Mistakes with Ontario Standard Leases

Ontario's Standard Form Lease is the official rental agreement for most homes. Since April 30, 2018, all new private rental agreements, like houses, condos, and apartments, must use this form.

As a property manager or new landlord, you might face difficulties with legal steps. This is especially true when it comes to evictions and maintaining good relationships with tenants.

This article will explain common mistakes with Ontario standard leases. We will simplify complex legal steps. This will help you handle property management confidently and avoid potential issues. It will also show you how to manage landlord-tenant relations in a legal way.

Understanding the Ontario Standard Lease Agreement  

The Ontario standard lease agreement is an important tool for landlords and property managers. The government requires it for most rental situations. This document sets clear guidelines for the rights and duties of both landlords and tenants.

Using this standard lease helps protect both landlords and tenants. It reduces conflicts by clearly stating the terms. If landlords do not use it, they could face serious legal problems.

The lease is structured into several key sections, which include:

• Names and addresses of landlord and tenant

• Rent amount and payment frequency

• Information about utilities and other fees

Not filling out these sections correctly can cause problems later on. It’s important to make sure all necessary parts are filled out correctly.

Knowing the lease document well is key to keeping a good relationship between landlords and tenants. This knowledge can help avoid many common issues that landlords face.

Legal Significance and Mandatory Fields  

The Ontario standard lease is very important. It is a legal agreement between the tenant and the landlord. Landlords must pay close attention to every required section of this lease.

If information is missing in these required fields, it can make the lease invalid or cause problems. It is important to fill in each detail correctly to make sure the lease is valid.

You must include the length of the tenancy and the rules for renewal or ending the lease. Filling in these details correctly is important to prevent legal problems.

Knowing these legal details helps landlords follow the rules of the Residential Tenancies Act. This knowledge is crucial for a good property management plan.

The Risks of Illegal Clauses and Terms  

Including illegal terms in a lease agreement can lead to serious problems. Any terms that go against the Residential Tenancies Act are not valid. This can hurt a landlord's case in disputes.

Illegal terms often try to ignore tenant rights. For example, you can't stop pets if the building allows them, and you can't evict someone without a good reason. These terms break the law and can expose landlords to lawsuits.

To protect against these risks, landlords should get help when writing lease terms. Legal advice or consultation with property management experts can be very helpful.

Making sure all terms follow the law protects both the tenant's rights and the landlord's investment. By using a standard lease, landlords can avoid expensive legal issues.

Top Mistakes Property Managers and Landlords Make  

Using the Wrong or Outdated Lease Form  

Some landlords may try to use old templates or add extra clauses instead of the official lease. In Ontario, the new standard lease has been required for all new agreements since March 2021.

Using an outdated version or a non-official form can leave out important legal details or break the law. Always get the latest standard lease from an official source, like the Ontario government's forms website, to make sure you are following the rules.

Adding Illegal or Unenforceable Clauses  

The Residential Tenancies Act (RTA) does not allow any lease rules that go against provincial laws. Common errors include rules that ban pets, guests, or additional people living in the unit. For example, clauses that say "no pets" or "no roommates" are not valid under the RTA.

The standard lease does not allow landlords to ban reasonable overnight guests. If a lease has a clause that tries to do this, it cannot be enforced, which can cause conflicts. Both landlords and tenants should avoid agreeing to or signing leases with these unwanted terms.

Omitting Required Details  

Fill in every blank in the standard lease. Be sure to include the exact rent amount, the payment due date, the lease start date, the names of all tenants, and the full address of the unit. Also, make it clear which utilities or services, like heat, water, internet, or parking, are included or extra.

If you leave these sections blank or unclear, it can create confusion and may make parts of the contract invalid. The new form is meant to help both parties know where to find the total rent and what is included or excluded. Please use it as it is meant to be used and do not skip any lines.

Misunderstanding Key Lease Rules  

Landlords and tenants sometimes misunderstand Ontario's rules about notices and rent increases. For instance, a tenant can end a fixed-term or monthly lease by giving at least 60 days' written notice. The end date must be on the last day of the rental period.

A common mistake is ending a lease early without giving proper notice, which is against the law. Also, rent increases are strictly controlled. A landlord can only raise the rent once every 12 months. They must also give 90 days' notice in writing using the correct form from the Landlord and Tenant Board.

If you skip the required form or notice period, the rent increase is not valid. Misunderstanding these rules can cause tenants to stop paying rent or lead to penalties for landlords.

Overlooking Maintenance Responsibilities  

The standard lease outlines the responsibilities of both landlords and tenants regarding repairs. Landlords must keep the rental unit in good condition and follow health and safety rules.

Tenants are responsible for keeping the place clean and fixing any damage they cause. It's important to note that a lease cannot require the tenant to take on all repair responsibilities, as this is not permitted.

Another mistake is when a tenant withholds rent for needed repairs. The lease clearly warns against this. Ensure the lease and any building rules clearly state who is responsible for what repairs. If not, disputes may come up over things like leaky faucets or broken appliances.

Failing to Give the Tenant a Signed Copy  

After everyone signs the lease, landlords need to quickly give the tenant a copy. If the tenant asks for the signed lease and does not receive it within 21 days, they can legally hold back one month's rent. If the lease is not provided even after 30 days, the tenant may have the right to end the tenancy.

It is important to remember to give the lease to the tenant. If you don’t, the tenant might leave or stop paying rent. Always make sure to print or email a signed copy to each tenant right after the contract is signed. Keep one copy for yourself as well.

Practical Tips to Avoid These Mistakes  

Use the Official, Latest Lease Form  

Always download the latest standard lease from the Ontario government website or the Central Forms Repository. The version from December 2020 is necessary for any lease that starts in March 2021 or later. Make sure to avoid using old versions or unofficial templates.

Fill In Every Section Carefully  

Make sure you include the rent amount, due date, lease term dates, and the names of all tenants.

Clearly list the utilities and services that are included or not included, such as heat, water, and parking. Don’t make assumptions or leave any blanks; even common terms should be clearly stated.

Leave Out Banned Clauses  

You should avoid using terms that the Residential Tenancies Act (RTA) does not allow. For example, you cannot legally ban pets, guests, or new occupants. If you want to set specific rules, like a pet policy, you can use building bylaws or include them as separate "Additional Terms" in the lease. Make sure these rules do not conflict with the 15 standard clauses in the lease.

Know the Laws on Notice and Rent  

Before signing, ensure that both parties know the rules about notice periods and rent. Tenants usually need to give 60 days' notice before leaving at the end of their lease. They should use the correct form from the Landlord and Tenant Board (LTB).

Landlords, on the other hand, must provide 90 days' notice for any rent increase and must also use LTB-approved forms. If you have questions, check LTB resources or ask a professional for help.

Keep the Tenant Informed  

Give the tenant a copy of the signed lease right away. If the tenant asks for it in writing and you don't provide it, they can take legal action, like withholding rent or ending the lease. By giving them the lease upfront, you can prevent these issues from happening.

The Role of Property Management Companies  

Property management companies are important for making lease management easier. They have the knowledge and experience that can really help landlords, especially if they are new to this area.

These companies make sure to follow the Ontario standard lease. They know the details and legal rules, which helps landlords avoid common mistakes. Their expertise can save landlords from expensive legal problems and disagreements.

In addition to making sure all laws are followed, property management companies offer help with daily tasks. They handle tenant communications, keep records, and collect rent. This allows landlords to focus on other parts of their investments.

Also, property management companies have connections to various professionals. They can reach out to legal experts and maintenance teams, making it easier to solve problems. This support system is very helpful for landlords who want to manage their properties effectively.

Benefits of Professional Lease Management  

Professional lease management has many benefits. First, it lowers the chance of legal problems. By making sure leases follow the rules, landlords can prevent conflicts.

It also gives landlords peace of mind. When experts manage tenant communications and lease terms, landlords can feel more relaxed. This benefit is especially attractive for those who own multiple properties.

Professional management can increase tenant satisfaction. Good service and quick communication create a positive atmosphere. When tenants are happy, they are more likely to renew their leases, which helps landlords maintain stable income.

Royal York Property Management's Approach  

Royal York Property Management is a leader in managing leases. They customize their services to fit the specific needs of each landlord. They make sure that every lease follows Ontario's laws, which helps reduce risks.

Royal York offers more than just regular management. By focusing on being open and honest with landlords, they build trust and keep landlords updated about their properties.

Furthermore, the extensive experience sets them apart. With a deep understanding of the rental market, they can handle complex issues effectively. Landlords partnering with Royal York Property Management benefit from a worry-free property management experience.

Final Thoughts  

A correct and complete Ontario Standard Lease protects everyone. By using the right form, filling in all details, and avoiding illegal clauses, landlords and tenants minimize future disputes.

To provide extra peace of mind, professional property managers such as Royal York Property Management can take care of the paperwork and explain the law for you. The experts at Royal York keep updated on leasing rules and carefully review each agreement. This means you can trust that your lease meets all legal requirements.