Residential Lease Agreements Ontario

Residential Lease Agreements Ontario

Please note that the information provided herein is not legal advice and is provided for informational and educational purposes only. It may not be up to date. Laws change often and without notice. If you need legal advice with respect to a residential lease agreement or sublease contract, you should seek professional assistance (e.g. make a post on Dynamic Legal Forms).

Looking for a Residential Lease Agreement Ontario?
If you’re a Landlord in Ontario and you want to lease out your house, apartment, condo, etc., then you can use our Lease-O-Matic Wizard to create a custom-tailored residential lease agreement. This Residential Lease Agreement also includes a 2 page tenant application which takes into consideration the types of questions you can LEGALLY ask a prospective tenant (under the Ontario Human Rights Code and the Residential Tenancies Act, 2006). Finally, the Residential Lease Agreement includes an eBook about residential leases in Ontario:

Rental Agreement Ontario

Pre-Authorized debiting

In this blog, I’ll be discussing the Landlord’s ability to use pre-authorized debit as a means of collecting the rent. Some Landlords are busy professionals and don’t want to be bothered with having to deposit cheques, etc. The question then comes up: can a Landlord require a prospective Tenant or Tenant to enter into a pre-authorized debit arrangement (i.e. where their bank account is automatically charged for the rent)?

Section 108 of the Residential Tenancies Act, 2006 states that a Landlord or a tenancy agreement CANNOT require a tenant or prospective tenant to provide post-dated cheques or permit automatic debiting of their bank account (or automatic charging of their credit card). These ways of paying the rent can be suggested, but a Tenant CANNOT be refused a rental unit or evicted for refusing to give them. If you insist on having this provision in your agreement, if they are ever challenged by the Tenant in the Landlord and Tenant Board, they will not be enforceable (but rather deemed void). In any event, if you insist on having these provisions, you will want to have a severability clause inserted in your agreement, which provides that if a provision in the lease agreement is held to be invalid, then the rest of the agreement shall still remain valid and that one offending provision shall be severed.

You should also note that if a Landlord asks for or requires automatic debiting of the Tenant’s bank account, there may be implications on the ability to collect fees arising from NSF charges. Normally, NSF charges can be passed-through to the Tenant if they are actually charged by the financial institution: section 87(5) of the RTA, 2006 (see also the decision in SWL-09268-10 (Re), 2010 CanLII 67986 (ON L.T.B.). If a Landlord uses pre-authorized electronic debit, however, they will NOT be entitled to charge any NSF fee or any administration fee related to NSF charges: see section 87(5) of the RTA, 2006 and the decision in SWL-10653-10 (Re), 2010 CanLII 48756 (ON L.T.B.).

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