Operating rental properties in Toronto requires compliance with a complex web of provincial and municipal regulations. The Residential Tenancies Act, 2006 (RTA) governs the landlord-tenant relationship across Ontario, but Toronto adds its own layer of municipal bylaws and requirements that landlords must understand. Violations can result in fines, void eviction applications, and expose you to liability. This guide covers every law that Toronto landlords need to know in 2026.
Whether you own a single condo in Downtown Core, a multi-unit building in Scarborough, or a single-family rental in The Annex, these laws apply to you. Understanding them is the foundation for successful property management and effective eviction proceedings when necessary.
The Residential Tenancies Act — Ontario's Core Landlord-Tenant Law
The RTA is the primary legislation governing all residential tenancies in Ontario, including every rental property in Toronto. Here are the key provisions that affect Toronto landlords daily:
Tenancy Continuation (Section 38)
When a lease term expires, the tenancy does not end — it automatically continues on a month-to-month basis under the same terms. You cannot evict a tenant simply because a lease has expired. This catches many Toronto landlords off guard, particularly those used to commercial real estate where leases have definitive end dates.
Rent Deposits (Section 106)
You may collect a rent deposit equal to one month's rent at the beginning of the tenancy. This deposit can only be applied to the last month's rent — it is not a damage deposit. The deposit must earn interest at the guideline rate each year. At Toronto's average rents of $2,350 for a one-bedroom, this represents a significant amount that must be properly managed.
Maintenance Obligations (Section 20)
Landlords must maintain the rental unit in a good state of repair, comply with all health, safety, and housing standards, and ensure the property meets the municipality's property standards bylaw. In Toronto, this includes compliance with toronto has additional municipal licensing for multi-tenant houses (chapter 629).
Entry Rules (Section 25-27)
You can only enter a tenant's unit with 24 hours written notice, between 8 AM and 8 PM, for specific reasons outlined in the RTA (inspections, repairs, showing the unit to prospective tenants or buyers). Emergency entries do not require notice.
Rent Control in Toronto — What Applies to Your Property
Rent control in Ontario is determined by when the unit was first occupied for residential purposes:
| Property Category | Rent Control Status | 2026 Maximum Increase | Toronto Impact |
|---|---|---|---|
| Units first occupied before Nov 15, 2018 | Rent controlled | 2.5% (guideline rate) | Majority of Toronto's older rental stock in North York, Yorkville, and established neighbourhoods |
| Units first occupied Nov 15, 2018 or later | Not rent controlled | No cap — landlord sets increase | Newer condos and purpose-built rentals in Downtown Core and developing areas |
| Community housing / non-profit | Separate rules apply | Varies | Non-profit housing providers in Toronto follow specific regulations |
| Above-guideline increase (AGI) | Requires LTB approval | Up to 3% above guideline per year (max 9% over 3 years) | Available for Toronto landlords with qualifying capital expenditures or tax/utility increases |
To increase rent, you must provide 90 days written notice using the N1 form (for rent-controlled units) or N2 form (for non-controlled units). Only one increase is permitted per 12-month period. The increase can only take effect on the anniversary of the tenancy or when 12 months have passed since the last increase.
Bill 60 — Strengthening Accountability for Landlords and Tenants (2024)
Bill 60, the Helping Homebuyers, Protecting Tenants Act, 2024, introduced several changes that affect Toronto landlords:
- Increased penalties for bad-faith evictions: Landlords who evict tenants in bad faith (such as filing an N12 for personal use without genuinely intending to occupy) now face fines of up to $100,000 for individuals and $500,000 for corporations — a significant increase from previous levels.
- Extended right of first refusal: Tenants evicted under N13 (renovation) now have enhanced rights to return to the unit at the same rent after renovations are complete.
- LTB process improvements: The Act directed additional resources to the LTB to reduce wait times, though the impact on Toronto's hearing timelines has been gradual.
- Tenant compensation requirements: Strengthened requirements for landlord compensation to tenants in N12 and N13 evictions.
Toronto Municipal Bylaws Affecting Landlords
Beyond the provincial RTA, Toronto has its own municipal regulations that landlords must comply with:
Toronto has additional municipal licensing for multi-tenant houses (Chapter 629), RentSafeTO program requiring building evaluations for apartments with 3+ storeys and 10+ units, and strict short-term rental bylaws.
Property Standards
Toronto's property standards bylaw sets minimum maintenance requirements for all properties, including rental units. Violations can result in orders to comply and fines. Common issues include:
- Exterior maintenance (roof, siding, windows, porches, stairs)
- Interior conditions (heating, plumbing, electrical, pest control)
- Yard maintenance and debris removal
- Structural integrity and fire safety
Fire Code Compliance
All rental units in Toronto must comply with the Ontario Fire Code. This is particularly important for basement apartments and multi-unit conversions, which must have proper egress windows, interconnected smoke alarms, carbon monoxide detectors, and fire separations. Non-compliant units can be ordered closed by the Fire Marshal, creating immediate housing and financial challenges for both landlords and tenants.
Key Laws Every Toronto Landlord Must Know — Summary Table
| Law / Regulation | Key Requirement | Penalty for Non-Compliance |
|---|---|---|
| RTA Section 233 — Illegal eviction | No self-help evictions (lock changes, utility shutoffs) | $50,000 individual / $250,000 corporate |
| RTA Section 106 — Rent deposits | Maximum one month's rent; last month only | T1 application; repayment + interest |
| RTA Section 20 — Maintenance | Maintain unit in good repair; meet all standards | T6 application; rent reduction; compliance order |
| RTA Section 25-27 — Entry | 24 hours written notice; 8am-8pm only | T2 application; potential harassment finding |
| Bill 60 — Bad faith eviction | Genuine intent required for N12/N13 | $100,000 individual / $500,000 corporate |
| Toronto property standards bylaw | Meet minimum maintenance standards | Municipal fines; orders to comply |
| Ontario Fire Code | Smoke alarms, CO detectors, egress, fire separations | Closure order; fines; criminal liability |
Illegal Charges and Practices in Toronto
The following are prohibited under the RTA, and Toronto landlords who engage in them face penalties:
- Security/damage deposits: Only a last month's rent deposit is permitted. No damage deposits, key deposits (beyond actual replacement cost), or pet deposits.
- Requiring post-dated cheques: You can request them, but you cannot require them as a condition of the tenancy.
- No-pet clauses: These are void under the RTA. You can only restrict animals if they cause damage, allergies to other tenants, or are of a dangerous breed prohibited by municipal bylaw.
- Guest restrictions: Tenants have the right to have guests. Clauses limiting guests are generally unenforceable.
- Lease provisions that contradict the RTA: Any lease clause that violates the RTA is void and unenforceable, even if the tenant signed it.
Staying Compliant as a Toronto Landlord
Compliance with both provincial and municipal laws protects you in two ways: it avoids fines and penalties, and it strengthens your position in any LTB proceedings. A tenant who can demonstrate landlord bylaw violations may receive favourable treatment from an adjudicator under section 83 discretion. Conversely, a landlord with a clean compliance record demonstrates good faith that supports their applications.
For a comprehensive understanding of the Toronto rental market context, see our Toronto rental market 2026 analysis. For step-by-step guidance on the eviction process, consult our guide to evicting a tenant in Toronto.
Frequently Asked Questions
Are Toronto rental properties subject to rent control?
It depends on when the unit was first occupied. Units first occupied before November 15, 2018 are subject to Ontario's rent increase guideline (2.5% for 2026). Units first occupied on or after November 15, 2018 are exempt from rent control, meaning landlords can increase rent by any amount with 90 days written notice once per 12-month period.
What municipal bylaws affect Toronto landlords?
Toronto has additional municipal licensing for multi-tenant houses (Chapter 629), RentSafeTO program requiring building evaluations for apartments with 3+ storeys and 10+ units, and strict short-term rental bylaws. Non-compliance with municipal regulations can result in fines and may undermine your position in LTB proceedings.
Can I require a Toronto tenant to pay a damage deposit?
No. Under the RTA, landlords in Toronto can only collect a rent deposit equal to one month's rent, applied to the last month of the tenancy. Security deposits, damage deposits, key deposits beyond replacement cost, and pet deposits are all illegal.
Questions About Toronto Rental Laws?
Ontario Eviction Services helps Toronto landlords understand and comply with provincial and municipal regulations. Whether you need help with an eviction notice, LTB application, or regulatory compliance, our team provides expert guidance.
Call (416) 555-0199Free consultation for Toronto landlords