15 Lease Red Flags Every Tenant Should Know
These are the most common problematic clauses found in residential leases — what each one means, whether it's actually enforceable, and what you should do if you see it in your lease.
Damage deposit or cleaning deposit
In Ontario, landlords can only collect a last month's rent deposit. Any deposit labeled as a 'damage deposit,' 'cleaning deposit,' or 'pet deposit' is illegal under the RTA.
What to do
Refuse to pay it. If you've already paid, file a T1 application with the LTB.
Deposit exceeding one month's rent
Even if called 'last month's rent,' a deposit greater than exactly one month's rent is unlawful in Ontario.
What to do
Pay only one month's rent as the deposit. Document any amount the landlord tries to collect above that.
"Subletting strictly prohibited"
A blanket prohibition on subletting is unenforceable in Ontario. Tenants have the right to sublet or assign — landlords cannot unreasonably withhold consent.
What to do
Understand the clause is void. You still need landlord consent, but it cannot be unreasonably refused.
Large flat-fee early termination penalty
Clauses that impose a fixed fee (e.g., two months' rent) for breaking a lease early are generally unenforceable. Landlords must mitigate losses and can only claim actual damages.
What to do
Know you likely don't owe the full penalty. Get legal advice before leaving early.
Late fees for overdue rent
Ontario law does not permit late fee charges for overdue rent. The landlord's remedy is the N4 process — not additional fees. Only NSF charges up to $20 are permitted.
What to do
Do not pay late fees. If forced to, file a T1 application with the LTB.
Landlord can enter without notice
Ontario law requires at least 24 hours written notice before a landlord enters — except in genuine emergencies. A clause permitting otherwise is void.
What to do
Know your right to 24-hour notice. If a landlord enters without notice repeatedly, document it and file a T2 with the LTB.
Rent increase without guideline or proper notice
Any rent increase must follow the annual guideline (unless exempt), occur no more than once every 12 months, and be preceded by at least 90 days written notice on Form N1.
What to do
Do not pay any rent increase that doesn't comply with these requirements. File a T1 if an illegal increase has already been charged.
"Tenant is responsible for all repairs"
This clause attempts to shift your landlord's maintenance obligations onto you. Under the RTA, landlords must maintain the property in good repair regardless of what the lease says.
What to do
Know the clause is void in so far as it conflicts with the RTA. Document maintenance requests in writing.
Vague or unlimited landlord entry rights
Clauses like "landlord may enter at any time for inspection" conflict with the 24-hour written notice requirement. Vague entry rights can facilitate harassment.
What to do
Know the clause cannot override your statutory rights. Track all entries with dates.
Automatic rent increase on renewal
Some leases contain clauses specifying that rent will automatically increase by a fixed amount or percentage upon renewal. These must still comply with proper notice and guideline requirements.
What to do
Verify any automatic increase complies with the guideline and that 90 days notice is still required.
"Tenant waives right to LTB proceedings"
You cannot waive your right to the LTB process — any clause attempting to do so is void under the RTA. Both parties retain access to the tribunal.
What to do
Know this clause is unenforceable and your LTB rights remain intact.
Responsibility for appliances the landlord owns
If the landlord provides appliances as part of the rental, they are generally responsible for maintaining them. Clauses that make you responsible for landlord-owned appliances are suspect.
What to do
Clarify in writing before signing which appliances are your responsibility and which are the landlord's.
NSF fee exceeding $20
Ontario permits landlords to charge up to $20 for a returned cheque or failed payment. Any higher fee is unlawful.
What to do
Refuse to pay NSF fees above $20. Request the excess be refunded.
No move-in inspection clause
A lease that doesn't address the condition of the unit at move-in creates risk for you. Without a documented inspection, you could be held responsible for pre-existing damage.
What to do
Request a written move-in inspection report signed by both parties. Take timestamped photos regardless.
"Landlord not responsible for injuries or loss"
Blanket liability waivers in leases have limited enforceability, especially for injuries caused by the landlord's negligence or failure to maintain the property.
What to do
Note the clause but understand it doesn't protect a negligent landlord. Maintain tenant insurance for your own protection.