The Importance of Additional Clauses in Your Ontario Lease Agreement
When it comes to renting out a property in Ontario, having a comprehensive lease agreement is crucial for both landlords and tenants. While the Standard Form of Lease covers the basics, there are additional clauses that can provide further protection and clarity for landlords. In this blog post, we'll discuss some of these essential clauses that you might consider adding to your lease agreement.
Note: The clauses discussed here are for informational purposes only. For the full versions of these clauses, please reach out to us directly. It's also advisable to consult with a legal advisor to ensure your lease agreement is compliant with Ontario and federal laws.
1. Delayed Possession
The "Delayed Possession" clause protects landlords in case they are unable to provide possession of the property by the agreed-upon date. This can happen due to renovations, previous tenant holdovers, or other unforeseen circumstances. The clause stipulates that the landlord is not liable for damages arising out of the delay and that the rent will abate until possession is given.
2. Lease Void Without Compliance
This clause ensures that the tenant meets certain conditions before the lease commences. These conditions can include the payment of the first month's rent and last month's deposit, transferring utilities to the tenant's name, and providing proof of insurance. Failure to meet these conditions can render the lease null and void, protecting the landlord from potential issues down the line.
3. Rent and Rent Discounts
The "Rent, Rent Discounts" clause specifies the acceptable methods of rent payment and how payments will be applied to the tenant's account. For example, it can state that rent may not be paid in cash and that any payment will first be applied to the oldest outstanding debt.
4. Use of Premises - Description of Rented Space & Shared Use Space
This clause clearly defines what areas of the property are included in the lease and which are excluded or shared. For instance, if you're renting out a semi-detached home and plan to develop the basement into a separate unit, this clause can specify that the basement is not included in the rental agreement.
5. Exclusions and Restrictions
This section can include any restrictions on the use of the property, such as not using it for illegal activities or short-term rentals like Airbnb. It can also specify that the property is for residential use only, and no other type of business can be operated out of the unit.
6. Responsibility for Services, Utilities, and Appliances
This clause outlines the tenant's responsibility to contract directly with utility providers and to maintain these contracts throughout the tenancy. It also specifies the consequences if the tenant removes themselves from a utility contract.
8. Landlord’s Covenants and Obligations
This section outlines the landlord's responsibilities, such as maintaining the property in a good state of repair and providing a habitable environment. It also specifies the landlord's obligations regarding rent receipts and any alterations to the property.
9. Tenant’s Covenants and Obligations
This comprehensive section covers a wide range of tenant responsibilities, from maintaining the unit's cleanliness to following specific protocols for repairs and maintenance. It also outlines the tenant's obligations regarding insurance, parking, and even the procedure for moving out.
10. Insurance
This clause emphasizes the importance of the tenant obtaining liability and property damage insurance. It outlines the minimum coverage amounts and specifies the consequences if the tenant fails to maintain adequate insurance.
11. Entry Into The Unit
This clause outlines the conditions under which a landlord may enter a rental unit. It covers scenarios like showing the unit to prospective tenants, taking marketing pictures, and conducting maintenance inspections. This clause is particularly useful for realtors who may need to enter the unit for valuation or listing purposes.
12. Termination of Tenancy, Disposal of Property, Abandonment
This section deals with the procedures and liabilities in case a tenant vacates or abandons the property. It outlines the tenant's responsibilities and the landlord's rights, including the right to re-rent the unit and dispose of abandoned property.
13. Disposition by the Landlord
This clause states that if the landlord transfers the property, they are relieved of all liabilities under the agreement from the date of transfer forward. This is crucial for landlords who may sell the property during a tenancy.
14. Death of a Tenant
This clause outlines what happens if a tenant passes away, specifying the responsibilities of the remaining tenants and the estate of the deceased. This is a sensitive but necessary clause to include.
15. General Provisions
This section includes various terms and conditions that apply to the lease agreement, such as the interpretation of singular and plural terms, and what happens in the event of natural disasters or bankruptcy. It also specifies that the lease agreement contains the entire understanding between the parties.
16. Privacy, Consent and Disclosure
This clause is particularly important in the age of data privacy. It outlines what personal information the landlord can collect and share, and for what purposes. It also specifies the tenant's rights regarding their personal information.
17. Care of the Unit
This section outlines the tenant's responsibilities for maintaining the unit. It covers everything from wall decorations to plumbing and electrical fixtures. These clauses are crucial for landlords to ensure that the property is well-maintained and for tenants to understand their maintenance obligations.
18. Rodents
This clause is particularly important for multi-unit buildings where a pest problem in one unit can quickly spread to others. It outlines the tenant's responsibility for keeping the unit free from vermin and the procedures for pest control treatments.
19. Pets
Pet clauses are common in many leases. This section outlines the tenant's responsibilities for any damage caused by pets and the rules for keeping pets in common areas. It also specifies the grounds for terminating the tenancy if the pet causes issues.
20. Smoking
Given the health risks associated with second-hand smoke and the potential for increased maintenance costs, many landlords include a no-smoking clause. This section outlines the areas where smoking is prohibited and defines what constitutes "smoking."
21. Cannabis
With the legalization of cannabis in Canada, landlords and tenants need clarity on its use and cultivation in rental units. This clause outlines the restrictions on smoking, growing, or cultivating cannabis in the unit or common areas.
22. Water Devices/Appliances
This section outlines the rules for bringing in water-based devices like waterbeds or aquariums, as well as other appliances. It aims to prevent potential damage to the property due to leaks or electrical overloads.
23. Garbage
Proper garbage disposal is essential for maintaining a clean and healthy living environment. This clause outlines the tenant's responsibilities for garbage disposal in accordance with municipal or provincial guidelines.
The Importance of Additional Clauses in Your Ontario Lease Agreement
When it comes to renting a property in Ontario, the Standard Form of Lease provides a solid foundation. However, the complexities of modern living and the unique circumstances of each rental situation often require additional clauses for comprehensive protection. These clauses serve as a safety net for both landlords and tenants, offering clarity and setting expectations for a variety of scenarios that may not be covered in a standard agreement.
From delayed possession and rent payment protocols to pet policies and garbage disposal, these additional clauses can save both parties significant time, money, and stress in the long run. They also provide a framework for resolving disputes, should they arise, and set the stage for a more harmonious landlord-tenant relationship.
As a realtor, understanding these clauses not only makes you more knowledgeable but also adds value to your client relationships. Whether you're a landlord looking to safeguard your investment or a tenant wanting to understand your rights and responsibilities, these additional clauses are indispensable.
For the full versions of these clauses and personalized advice tailored to your situation, feel free to reach out to us directly. Always remember, a well-crafted lease agreement is the cornerstone of a successful rental experience.
Additional Links
Delayed Possession
Ontario Landlord and Tenant Law on Delayed Possession:
Lease Void Without Compliance
Ontario Tenant Act on Lease Conditions:
Rent and Rent Discounts
Ontario Guidelines on Rent Increase:
Use of Premises
Exclusions and Restrictions
Ontario Laws on Short-Term Rentals:
Responsibility for Services, Utilities, and Appliances
Ontario Utility Responsibilities:
Landlord’s Covenants and Obligations
Ontario Maintenance and Repairs Guidelines:
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