Residential lease in Canada: deposits, notice and standard forms

Deposits differ sharply by province

Ontario allows only a rent deposit of no more than one rent period, applied to the last month's rent, and prohibits damage deposits outright (Residential Tenancies Act, ss.105-106). Key deposits are permitted but limited to the actual replacement cost.

British Columbia allows a security deposit of up to half a month's rent, plus a separate pet damage deposit of the same amount. Alberta allows a security deposit of up to one month's rent held in an interest-bearing trust account.

Because the rules diverge, a lease that simply says two months' deposit is unenforceable in most of the country.

1. 1.Identify the province and use its mandatory form where one exists.
2. 2.Name every tenant and the rental unit, including parking and storage.
3. 3.State rent, due date, and what services and utilities are included.
4. 4.Apply the provincial deposit rules rather than a generic amount.
5. 5.Complete a move-in inspection with dated photographs.
6. 6.Give the tenant a signed copy within the statutory deadline.

Notice and ending the tenancy

In Ontario a tenant ending a monthly tenancy gives 60 days' notice ending on the last day of a rental period, and a fixed-term tenancy converts automatically to month-to-month rather than ending. A landlord must use the prescribed forms and, for most no-fault grounds, apply to the Landlord and Tenant Board.

Personal-use terminations carry compensation and good-faith requirements, and a landlord who acts in bad faith can be ordered to pay substantial penalties.

In British Columbia and Alberta the periods and forms differ again, but the principle is identical: notice must be on the prescribed form and for a permitted reason.

Clauses that do not survive

No-pet clauses are void in Ontario, though a tenant can still be evicted for damage or serious disturbance. Clauses that waive maintenance obligations, charge illegal fees, permit lockouts, or shorten statutory notice periods are unenforceable everywhere.

Rent increases are regulated: most provinces set an annual guideline and require a prescribed notice period, commonly 90 days, with limits on frequency.