Before you hand over the keys to your tenants, it’s your responsibility as a landlord to make sure your property is safe, legal, and compliant with Ontario’s housing standards. Here’s a checklist of what you need to have in order before leasing your investment property.

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1. Meet All Health, Safety, and Maintenance Standards

Under the Ontario Residential Tenancies Act (RTA) and local property standards bylaws, every rental unit must be safe, clean, and fit for occupancy.

That means:

• All essential systems (heating, plumbing, and electrical) must work properly.
• Smoke and carbon monoxide detectors are installed and tested.
• The property meets local fire code, building code, and occupancy standards.
• Windows and doors open easily and lock securely.
• There are no leaks, mould, or pest infestations.

If the unit doesn’t meet standards, it can’t legally be rented until deficiencies are corrected.

2. Verify Zoning and Licensing Requirements

Before listing your property, confirm that your intended use is permitted under local zoning bylaws.
This is especially important for:

• Duplexes or secondary suites (must be legally registered or compliant)
• Student rentals (some cities require rental housing licenses)
• Short-term rentals (like Airbnb — may have restrictions or separate permits)

Check with your municipality before purchasing the property to confirm what’s allowed in this area, and get any necessary inspections or fire safety approvals.

3. Ensure Proper Fire Safety Compliance

Rental properties must meet Ontario Fire Code standards, including:

• Working smoke and CO detectors on every level and outside all sleeping areas.
• Clear, unobstructed exit routes.
• Fire-rated doors and drywall (for multi-unit dwellings).
• Fire extinguishers in common areas (if applicable).

It’s good practice to keep records of annual inspections and detector replacements.

4. Handle Utilities and Essential Services Properly

Landlords are legally responsible for ensuring heat, water, and electricity remain available even if tenants pay for utilities directly.
If any essential service is interrupted, it’s still the landlord’s duty to fix it promptly.

Before leasing:

• Set up or transfer utility accounts correctly.
• Clearly outline who pays for each service in the lease.
• Include meter reading information in the move-in inspection.

5. Prepare the Standard Ontario Lease Agreement

As of 2018, Ontario requires landlords to use the Standard Ontario Lease form for most residential tenancies.
You can download it directly from the provincial website.

This form ensures both parties understand their rights and responsibilities, and it protects you from missing required terms.
You can attach custom addendums for things like parking, utilities, pets, or maintenance, as long as they don’t contradict the RTA.

Click here to download the Standard Ontario Lease Agreement!

6. Collect Deposits and Rent Legally

Ontario law allows you to collect a rent deposit equal to one month’s rent (applied to the last month of tenancy).
You can also collect key deposits, but only if the amount is reasonable and refundable when keys are returned.

You cannot collect:

• Damage deposits
• Cleaning fees
• Non-refundable pet deposits (unless covered under a specific lease clause and permitted by law)

Always provide receipts for any funds received.

7. Document the Property’s Condition

Before move-in, do a complete inspection of the unit with photos or video documentation.
This protects both you and your tenant if there are disputes later.

Include:

• Wall and flooring condition
• Appliances and fixtures
• Smoke/CO detector test results
• Meter readings and key handover notes

8. Confirm Insurance Coverage

Landlord insurance is different from homeowner’s insurance. It should include:

• Property coverage (structure and systems)
• Liability coverage (in case a tenant or visitor is injured)
• Loss of rent coverage (if the property becomes uninhabitable)

Encourage tenants to carry renter’s insurance (contents and liability) – this protects both sides.

The Bottom Line

Doing things right before tenants move in saves you time, stress, and potential legal trouble down the road.
A compliant property not only protects you as a landlord but also attracts better tenants and supports your reputation as a professional investor.