Lease Agreement Explained: Every Section Decoded
What does your lease actually say — and what does it mean? Here's every standard section of a residential lease, translated from legalese into plain English.
Parties to the Agreement
Also called: Lessor / Lessee
This section identifies who the landlord is (the lessor) and who the tenant is (the lessee). Both parties must be correctly named. In Ontario, the standard lease also requires the landlord's address for service of notice.
What to watch for
Verify your full legal name and the landlord's full name. A corporation renting property should have the corporation's legal name, not just the property manager's name.
Premises / Rental Unit
Also called: Demised Premises
Describes the exact rental unit — the address, unit number, and sometimes a list of what is included (parking space, storage locker, appliances). This is your legal description of what you are renting.
What to watch for
Make sure every amenity included in your rental is listed here. If you negotiated parking or a storage locker, it should be explicitly included.
Term of Tenancy
Also called: Lease Term / Tenancy Period
Specifies whether the lease is fixed-term (e.g., one year) or month-to-month. For fixed-term leases, states the start and end dates. Most Ontario leases automatically become month-to-month after the initial term, unless either party gives notice.
What to watch for
Note the exact end date and understand that in Ontario, failing to give proper notice before the end of a fixed term means the tenancy continues — it doesn't end automatically.
Rent
Also called: Consideration / Rental Amount
States the monthly rent amount, the day it's due (usually the 1st), the payment method accepted, and whether any utilities or services are included. May also specify the NSF fee for returned payments.
What to watch for
Confirm the total monthly amount matches what you agreed verbally. Check that included utilities are listed explicitly, not implied.
Security Deposit / Last Month's Rent
Also called: Rental Deposit
In Ontario, this is legally limited to the last month's rent — not a damage deposit. The deposit must earn interest annually at the provincial guideline rate and be applied to your final month of tenancy.
What to watch for
Any deposit above one month's rent is illegal in Ontario. A 'damage deposit' separate from last month's rent is also illegal.
Rules and Restrictions
Also called: Covenants / Restrictions
The rules governing how you can use the unit: pets, guests, smoking, noise, alterations, parking, garbage disposal, and more. This section defines your day-to-day obligations as a tenant.
What to watch for
Read every rule carefully. Vague rules ('no excessive noise') give landlords wide discretion. Pet restrictions may be enforceable even if your landlord said verbally that pets were fine.
Maintenance and Repairs
Also called: Repair Obligations / Property Standards
Outlines who is responsible for maintaining the unit. In Ontario, the landlord is legally required to maintain the unit in good repair — this cannot be contracted away. You are responsible for damage you cause.
What to watch for
Watch for clauses that try to transfer landlord maintenance duties to you — such as making tenants responsible for appliance repair or plumbing maintenance.
Entry by Landlord
Also called: Right of Entry / Access
Sets out when and how the landlord may enter the unit. In Ontario, the law requires at least 24 hours written notice, entry between 8am and 8pm, and entry for specific permitted purposes only.
What to watch for
Any clause permitting entry without notice (except in emergencies) conflicts with Ontario law. Such clauses are void.
Termination
Also called: Notice to Terminate / Surrender
Specifies how either party can end the tenancy — including notice periods and the method of giving notice. For month-to-month tenancies in Ontario, tenants must give 60 days notice.
What to watch for
Watch for penalty clauses that impose large fees for leaving early. The landlord's remedy for early departure is to seek compensation through the LTB — not to automatically pocket a large flat fee.
Additional Terms
Also called: Schedule / Rider / Addendum
Extra clauses added by the landlord beyond the standard lease. This is the most variable section and where problematic clauses most commonly appear.
What to watch for
Read every additional term carefully. Clauses that conflict with the Ontario RTA are void — but you need to know they're there. Ask your landlord to explain any clause you don't understand before signing.