The Ontario government has recently introduced a new rental agreement form that landlords and tenants will have to use starting April 30, 2018. The new standardized lease agreement aims to protect both landlords and tenants by clearly laying out their rights and obligations.
If you’re a landlord or tenant in Ontario, here’s what you need to know about the new rental agreement form:
Why is there a new rental agreement form?
The provincial government has heard complaints from tenants and advocacy groups that the current rental documents are confusing and hard to understand. Landlords are also concerned about the lack of standardization in the rental process, which has led to disputes and confusion between parties.
The new standardized lease agreement form aims to address these issues by creating clear and concise rental documents that landlords and tenants can easily understand.
What is included in the new rental agreement form?
The new rental agreement form covers all the essential elements of a rental agreement, including:
1. Contact Information: The landlord and tenant must include their full name, address, and contact information
2. Rental Premises: The lease must clearly state the address of the rental property
3. Rent and Deposit Information: The lease must include the rental amount, payment due date, and when the rent will increase (if applicable). The lease must also include information on any deposits or fees, such as key or pet deposits.
4. Tenancy Term: The lease must specify the term of the tenancy, including the start and end dates. If the tenancy is for a fixed term, the date of termination must also be included.
5. Maintenance and Repairs: The lease must specify who is responsible for maintaining and repairing the rental property.
6. Other Terms: The lease must also include any other terms agreed upon by both parties, such as restrictions on pets or smoking, or a requirement for tenant insurance.
What are the benefits of the new rental agreement form?
The new standardized lease agreement form has several benefits for both landlords and tenants, including:
1. Clear and concise documents that are easy to understand
2. Increased transparency in the rental process
3. Greater consistency in rental agreements, reducing the risk of disputes between parties
4. Improved protection for tenants against illegal terms or clauses in rental agreements
5. A stronger legal framework for landlords to protect their property and rights
What are the penalties for not using the new rental agreement form?
Starting April 30, 2018, landlords must use the new standardized lease agreement form for all new leases. If landlords fail to use the new form, they can face penalties and fines up to $25,000.
The new standardized lease agreement form is a positive change for both tenants and landlords in Ontario. By creating clear and concise rental documents, the new form will reduce confusion and disputes between parties, while also improving protection for both landlords and tenants. If you’re a landlord or tenant in Ontario, make sure you’re aware of the new rental agreement form and comply with its requirements to avoid penalties or fines.