Renting in Toronto is governed by Ontario’s Residential Tenancies Act, which covers most apartments, houses, and rooms. For a standard monthly tenancy, a landlord may ask for a deposit of no more than one month’s rent, and that money can only be applied to the last rental period. Disputes go to the province’s Landlord and Tenant Board.
What the Residential Tenancies Act covers
According to the Landlord and Tenant Board’s guide to the Act, the law applies to most rental units, including apartments, houses, and rooms in rooming or boarding houses. It does not apply where a tenant must share a kitchen or bathroom with the landlord. Some rent rules are relaxed for non-profit and public housing and for university and college residences, but rules on maintenance and eviction still apply to them.
Any term in a lease that conflicts with the Act cannot be enforced by the Board. That is the main reason to read a lease before signing it: a clause that sounds firm may have no legal effect.
The standard lease
For most tenancies that began on or after April 30, 2018, landlords must use the province’s standard Residential Tenancy Agreement form. If the landlord does not, the tenant can ask for it. A landlord must give the tenant a copy of any written lease within 21 days of the tenant signing it. If the standard form is not used, the landlord must provide the Board’s “Information for New Tenants” brochure on or before the start of the tenancy.
Deposits and rent increases
Ontario allows a rent deposit but not a damage deposit. The deposit is capped at one month’s rent for monthly payers, or one week’s rent for weekly payers, and it can only be applied to the last rental period before the tenant moves out. Landlords must pay the tenant interest on it every year, at the rate of the rent increase guideline.
Rent generally cannot go up until 12 months after a tenant moved in or after the last increase, and the landlord must give at least 90 days’ written notice on the proper Board form. An increase up to the yearly guideline needs no approval from the Board. According to Ontario.ca, the guideline is 2.1 percent for 2026 and 1.9 percent for 2027. It does not cover units first occupied for residential purposes after November 15, 2018, which includes most new buildings and many newer basement apartments, and it does not limit the rent a landlord and a new tenant agree on at turnover.
| Topic | Rule summarized from the official guide |
|---|---|
| Deposit | One rental period (month), applied only to the last period |
| Written lease copy | Within 21 days of signing |
| Rent increase interval | Not before 12 months |
| Notice of increase | At least 90 days, in writing, on the Board’s form |
| Guideline, 2026 | 2.1 percent (1.9 percent for 2027) |
What rents look like
Canada Mortgage and Housing Corporation (CMHC) publishes the standard measure for purpose-built rental buildings. Its 2025 Rental Market Report lists an average two-bedroom rent of $2,034 CAD in the Toronto area, up 3.5 percent, with a vacancy rate of 3.0 percent. These figures describe purpose-built apartments only. They do not cover condominium units rented out by investors or basement apartments, which are priced differently, and the report’s own tables should be read for the exact survey date and geography.
Searching for a rental
The practical steps are plain. Decide on a monthly budget, compare it against the CMHC averages, and view the unit in person or through a live video tour before sending any money. Ask who the landlord is and get the name in writing. Request the standard lease and read it. Keep the receipt for the rent deposit. Photograph the condition of the unit on the day of the move-in. A listing that asks for a damage deposit, or for several months of rent in advance, is asking for something the Act does not allow for a standard tenancy.
Property managers often end their listings with a stock call to action. Treat it as an invitation to ask questions rather than as a promise, and get the lease, the landlord’s name and the full monthly cost in writing before paying anything.
Where disputes are decided
The Landlord and Tenant Board resolves disputes between tenants and landlords in a way similar to a court. It offers mediation, where a Board mediator helps both sides reach an agreement, and adjudication, where a member holds a hearing and issues a binding order. The Board also publishes plain-language brochures. This article is general information, not legal advice. Questions about a specific lease should go to the Board or a legal clinic.
Frequently asked questions
Can a Toronto landlord ask for a damage deposit?
Under the Landlord and Tenant Board’s guide, the only deposit permitted is a rent deposit of up to one month’s rent, which is applied to the last rental period. A damage deposit is not part of that scheme.
How much can rent go up in one year?
For most units, the 2026 guideline is 2.1 percent, according to Ontario.ca. Units first occupied after November 15, 2018 are exempt from the guideline.
Does a lease have to be written?
A written lease is the norm, and for most tenancies since April 30, 2018 the landlord must use the standard form. The Act also protects tenants whose agreement is only oral.
Who handles a dispute with a landlord?
The Landlord and Tenant Board, which offers mediation and hearings.
Last verified: October 2026
Sources
- Ontario Ministry of Municipal Affairs and Housing, Rent increase guideline, Ontario.ca
- Landlord and Tenant Board, A Guide to the Residential Tenancies Act, Tribunals Ontario
- Canada Mortgage and Housing Corporation, Rental Market Reports, Major Centres, 2025 report
Related reading
- How Toronto and Ontario differ as places and governments
- The city’s street needs assessment and housing pressure
- Toronto compared with other Canadian cities in the census
- Toronto in numbers
- Living in Toronto: the hub
Cite this page
APA: History of Toronto. (2026, October 27). Renting in Toronto: Ontario’s Rules, Deposits, and Rent Limits. http://localhost:8210/blog/renting-an-apartment-in-toronto-canada-find-your-dream-home-in-the-heart-of-the-city
MLA: “Renting in Toronto: Ontario’s Rules, Deposits, and Rent Limits.” History of Toronto, 27 Oct. 2026, http://localhost:8210/blog/renting-an-apartment-in-toronto-canada-find-your-dream-home-in-the-heart-of-the-city. Accessed .
Chicago: History of Toronto. “Renting in Toronto: Ontario’s Rules, Deposits, and Rent Limits.” Last modified October 27, 2026. http://localhost:8210/blog/renting-an-apartment-in-toronto-canada-find-your-dream-home-in-the-heart-of-the-city.
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