Ontario Standard Lease: Fixed-Term vs Month-to-Month

Since April 30, 2018, almost every Ontario residential lease must use the government-issued Ontario Standard Lease. The form is short, but the choices you make on it — fixed-term vs. month-to-month, addendum content, deposit handling — shape your rights and obligations for years.

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The Standard Lease form

The Ontario Standard Lease (Form 2229) covers the essentials: parties, premises, term, rent, included services and utilities, last month's rent deposit, and signatures. It's a fillable PDF available free from the Ministry of Municipal Affairs and Housing.

If the tenant requests the Standard Lease and the landlord fails to provide it within 21 days, the tenant may withhold one month's rent. Use the Standard Lease.

Fixed-term vs. month-to-month

A fixed-term lease (typically one year) commits both parties to the term. After expiry, if no new lease is signed, the tenancy automatically continues on a month-to-month basis under the same terms. The tenant doesn't have to sign anything to stay; they just keep paying.

Month-to-month tenancies have no fixed end date. Either party can terminate with proper notice (60 days from the tenant; specific cause-based notices from the landlord).

Addendum: what you can add

The Standard Lease addendum allows additional terms that don't conflict with the RTA. Common, enforceable additions:

• Pet rules and any pet deposit (note: Ontario doesn’t allow refundable pet deposits in most cases)
• Smoking restrictions
• Tenant insurance requirement
• Building rules and condo by-laws by reference
• Parking and locker assignments
• Internet/cable handling specifics
• Move-in / move-out condition documentation requirements
• Quiet enjoyment clauses (within RTA limits)

What you cannot add

Clauses that conflict with the RTA are unenforceable, even if signed. Examples:

• Bans on children, marriage, or gender expression
• Excessive penalty fees
• Right to enter without notice (24 hours minimum, 8am–8pm)
• Late payment penalties beyond the prescribed limits
• Forced electronic service of legal notices without explicit written consent

Deposits: last month’s rent only

Ontario law allows landlords to collect a last month's rent deposit (LMR), and only that. Damage deposits, security deposits, key deposits beyond actual cost — all are unlawful. The LMR must be held for the tenant and returned with interest at lease end.

Interest on the LMR accrues at the annual rent increase guideline rate (2.5% for 2026). Owners often forget to credit this interest — a small but compounding compliance risk.

Renewals

Renewals don't require a new Standard Lease. The tenant can stay on month-to-month indefinitely after the fixed term expires, on the same terms. If you want to formalize a new fixed term, prepare a fresh Standard Lease; the tenant must agree to sign — they can't be compelled.

Most CentreKey owners default to year-one fixed-term then month-to-month, with rent guideline increases applied annually via N1. It's clean, low-friction, and aligns with how most tenants want to operate.

Key Takeaways

- Use the Ontario Standard Lease (Form 2229) — it’s required for almost every residential lease
- Fixed-term automatically continues on month-to-month after expiry
- Addendum can include enforceable additional terms; conflicts with RTA are unenforceable
- Only the last month’s rent deposit is allowed — other deposits are unlawful
- LMR earns interest at the rent guideline rate; remember to credit it