Lease Clauses That Don’t Hold Up: What Ontario Real Estate Agents Must Know

We’ve all seen lease clauses drafted with good intentions that ultimately don’t hold up under Ontario law: “no pets” rules, excessive key deposits, and mandatory professional cleaning clauses are common examples. They may sound reasonable on paper, but whether they are legally enforceable under the Residential Tenancies Act (RTA) is a different question.

When drafting a lease or advising clients—whether you represent the landlord or the tenant—it’s essential to understand not just what a client wants, but what the law allows. Real estate professionals do more than secure a tenant quickly and for the best possible rent; they must also protect their clients by ensuring lease terms comply with the RTA. That begins with knowing the legal boundaries.

For example, many landlords ask to advertise a property as “no pets.” While it’s important to respect a landlord’s preferences, agents have an obligation to educate clients: in Ontario, blanket “no pets” clauses in standard residential tenancies are generally void and unenforceable, except in limited cases such as specific condominium declarations or narrow health and safety restrictions. A tenant who moves in without a pet and later acquires one is not automatically subject to eviction for that reason alone.

The typical follow-up from landlords is often, “Then I want a $1,000 pet deposit.” This is another area where clear advice matters: pet deposits are not permitted in Ontario.

These conversations should take place before a property is listed and long before dispute-prone clauses are inserted into a tenancy agreement. Preparing compliant leases up front prevents misunderstandings and reduces the risk of invalid provisions causing problems later.

The dos: what a solid lease looks like

A compliant, practical lease balances the landlord’s need to protect the property and the tenant’s statutory rights. Consider these best practices:

  • Use the Ontario Standard Lease for most residential tenancies — it aligns with RTA requirements and reduces the risk of unenforceable terms.
  • Request a reasonable, refundable key or fob deposit capped at the actual replacement cost.
  • Include lawful, clearly worded clauses covering agreed terms such as utilities, smoking restrictions where applicable, and occupancy limits.
  • Advise landlords that maintenance and repairs are generally their responsibility under the RTA.
  • Clarify tenant responsibilities for keeping the unit reasonably clean and for repairing or compensating for damage beyond normal wear and tear caused by them or their guests.
  • Review condominium declarations and bylaws where applicable, since condo rules can legitimately affect pet restrictions and other conditions.

The don’ts: clauses that won’t hold up

Some of the most common lease clauses are also the most likely to be unenforceable. Avoid including or relying on these:

  • Asking for upfront rent beyond what the RTA permits (only first and last month’s rent are allowed).
  • Charging pet deposits — these are not legal in Ontario.
  • Relying on blanket “no pets” clauses in standard residential leases, which are generally unenforceable.
  • Demanding damage or security deposits that go beyond lawful options.
  • Requesting excessive key deposits above the actual replacement cost.
  • Requiring mandatory professional cleaning that exceeds reasonable cleanliness expectations on move-out.
  • Inserting clauses that shift all repairs or capital maintenance responsibilities to tenants.
  • Attempting to charge tenants for normal wear and tear by labeling it “damage.”
  • Including clauses that require tenants to cover a fixed portion of every repair (for example, $100–$200) regardless of circumstance.
  • Making post-dated cheques a mandatory condition of tenancy—post-dated cheques may be requested but cannot be required in all cases.
  • Requiring pre-authorized debit as a mandatory condition of tenancy.
  • Including automatic penalties, late fees, or interest charges not permitted under the RTA; contractual terms that contradict the law will not be enforceable even if both parties agreed to them.

Why this side of the business deserves more attention

Just because a clause has been commonly used for years doesn’t make it lawful. That distinction highlights why professional guidance is essential. Many standard clauses that appear in leases are among the least enforceable under Ontario law.

Agents who understand the Residential Tenancies Act do more than fill in forms: they protect their clients, reduce legal risk, and demonstrate the expertise that distinguishes true professionals. Taking the time to draft lawful, clear leases and to educate clients up front pays dividends by preventing disputes and ensuring tenancy agreements stand up to scrutiny.