Lease clauses that don’t hold up: What Ontario agents need to know

We’ve all seen lease clauses inserted with good intentions that don’t actually hold up under Ontario law. The “no pets” clause. Excessive key deposits. Mandatory professional cleaning requirements. They sound reasonable on paper, but are they enforceable?

When drafting a lease or advising clients, whether you’re representing the landlord or the tenant, it’s important to understand not just what a client wants, but what is legally permitted under the Residential Tenancies Act. Our role as real estate agents is not only to lease our clients’ homes within a specific timeframe and for top dollar — it’s to protect them. And that starts with knowing the rules.

I’ve had landlords say, “I want the listing to say no pets.” Of course, we listen to our clients but we also have a responsibility to educate them. In Ontario, “no pets” clauses are generally void and unenforceable, except in limited situations such as certain condo declarations or legitimate health and safety restrictions. Even if a tenant moves in without a pet and acquires one later, that alone is not grounds for eviction.

The next response is usually, “Then I want a $1,000 pet deposit.” Again, this is where education matters: pet deposits are not legal in Ontario.

These are the conversations that should be happening before a property is listed for lease — and well before any clauses are inserted into an agreement.

The dos: what a solid lease looks like

Here’s what landlords and their representatives can and should do:

✔Use the Ontario Standard Lease for most residential tenancies. 

✔Request a reasonable, refundable key or fob deposit — limited to the actual replacement cost.

✔Include lawful clauses outlining agreed terms such as utilities, smoking restrictions where applicable and occupancy provisions. 

✔Advise landlords that maintenance and repairs are generally their responsibility. 

✔Clarify to tenants that they are responsible for cleanliness and for damage beyond normal wear and tear caused by them or their guests. 

✔Review condo declarations and bylaws, as condominium rules may affect pet restrictions and other conditions.

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

These are among the most common clauses found in leases and also among the least enforceable:

• Ask for upfront rent beyond what the Residential Tenancies Act allows (first and last month only).
• Charge pet deposits — they are not legal in Ontario.
• Rely on “no pets” clauses in standard residential leases — they are generally unenforceable. 
• Demand damage or security deposits. 
• Request excessive key deposits beyond actual replacement cost. 
• Require mandatory professional cleaning that exceeds normal cleanliness expectations. 
• Insert clauses shifting all repairs or capital maintenance to tenants. 
• Attempt to charge tenants for normal wear and tear as “damage.” 
• Include clauses requiring tenants to cover the first portion of every repair (e.g., $100 to $200).
• Demand post-dated cheques as a condition of tenancy — they may be requested, not required.
• Require pre-authorized debit as a mandatory condition of tenancy. \
• Include automatic penalties, late fees or interest charges not permitted under the Act. If a clause contradicts the law, it won’t stand regardless of what both parties agree to.

Why this side of the business deserves more attention

Longstanding practice does not make something lawful and that distinction is exactly where professional guidance becomes critical.

Some of the most common clauses in leases are also the least enforceable. Agents who understand the Residential Tenancies Act aren’t just protecting their clients; they’re demonstrating the kind of expertise that separates professionals from people who simply fill in forms.

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