Lease Agreement
Understand how lease agreements work in Canadian real estate, what they must include, and how they protect tenants and landlords alike.
May 22, 2025
What is a Lease Agreement?
A lease agreement is a legally binding contract between a landlord and a tenant outlining the terms and conditions under which the tenant may occupy and use a property.
Why Lease Agreements Matter in Real Estate
In Canadian real estate, lease agreements are critical for defining the rights and responsibilities of both landlords and tenants.
A standard lease includes:- Monthly rent amount and payment schedule
- Term of lease (fixed-term or month-to-month)
- Security deposit details
- Rules for pets, smoking, guests, and repairs
- Termination and renewal clauses
Some provinces, like Ontario, require landlords to use a standard government-issued lease form. Both parties must sign the agreement, and landlords must provide a copy to the tenant.
Lease agreements protect both sides: landlords gain legal recourse in case of non-payment or damage, and tenants secure housing and tenancy rights. Clarity in the lease prevents disputes and ensures compliance with provincial tenancy laws.
Understanding lease agreements is vital for anyone renting out or moving into a residential property.
Example of a Lease Agreement
A tenant signs a one-year lease at $2,000/month, with rules prohibiting subletting without the landlord’s written permission and requiring 60 days’ notice before vacating.
Key Takeaways
- Legal contract between tenant and landlord.
- Defines rent, terms, and responsibilities.
- Required in all residential rental situations.
- Regulated by provincial tenancy laws.
- Must be clear to avoid disputes.
Related Terms
- Tenancy Agreement
- Landlord and Tenant Board
- Rental Rights
- Security Deposit
- Residential Lease
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
5680 Oak Street in Vancouver and its surrounding context. (MCMP Architects)
Ground-level renderings of the tower proposed for 5680 Oak Street in Vancouver. (MCMP Architects)
