A Canadian Room Rental Agreement is a legal contract between a homeowner (or primary tenant) and a tenant who is renting a single room within a shared residential property. Unlike a standard residential lease where the tenant has exclusive possession of an entire dwelling, a room rental arrangement involves shared living spaces — the tenant occupies a private bedroom but shares common areas such as the kitchen, bathroom, living room, and laundry facilities with the homeowner or other occupants.

The legal framework governing room rentals in Canada is significantly different from standard residential leases. The critical distinction is whether the provincial Residential Tenancy Act (RTA) applies. In Ontario, the Residential Tenancies Act, 2006 (S.O. 2006, c. 17, s. 5(i)) explicitly exempts living accommodations where the tenant is required to share a kitchen or bathroom with the owner, the owner’s spouse, child, or parent, or a child or parent of the owner’s spouse. In British Columbia, the Residential Tenancy Act (S.B.C. 2002, c. 78, s. 4(c)) similarly exempts living accommodation in which the tenant shares a kitchen or bathroom with the owner of the accommodation. Alberta’s Residential Tenancies Act (S.A. 2004, c. R-17.1) generally applies to room rentals unless the tenant shares the landlord’s personal living quarters.

When the RTA does not apply, the room rental relationship is governed by common law contract principles. This means the parties have greater contractual freedom — they can agree to notice periods, deposit amounts, and termination conditions that might not be permitted under the RTA. However, it also means the tenant has fewer statutory protections: there is no access to the provincial tenant tribunal (such as Ontario’s Landlord and Tenant Board or BC’s Residential Tenancy Branch), no mandatory maintenance standards beyond municipal by-laws, and no protection against above-guideline rent increases. A well-drafted Room Rental Agreement is therefore essential to protect both parties by clearly defining their respective rights and obligations.

A Canadian Room Rental Agreement is needed whenever a homeowner or primary tenant rents out a room in their home to another person. This is one of the most common rental arrangements in Canada, particularly in high-cost housing markets such as Toronto, Vancouver, and Ottawa, where room rentals provide an affordable housing option for students, young professionals, temporary workers, and newcomers to Canada.

The agreement is essential for establishing the terms before the tenant moves in. Without a written agreement, disputes about rent amounts, shared space usage, guest policies, quiet hours, and cleaning responsibilities can quickly escalate. Because many room rentals fall outside the RTA (when the tenant shares a kitchen or bathroom with the homeowner), there is no statutory framework to fall back on — the written contract IS the governing document. Canadian courts have consistently held that where the RTA does not apply, the rights of the parties are determined by the terms of their agreement and common law principles.

A Room Rental Agreement is particularly important for defining expectations around shared living. Unlike a standard lease where boundaries are clear, room rentals require explicit rules about kitchen use, bathroom schedules, food storage, laundry access, guest policies, noise levels, and cleaning responsibilities. The agreement should also address the security deposit (if any), since provincial deposit rules differ dramatically depending on whether the RTA applies. In Ontario where the RTA applies, the only lawful deposit is a last month’s rent deposit that must be applied to the last month’s rent — damage deposits are prohibited. In BC where the RTA applies, the maximum security deposit is one half of one month’s rent. But when the RTA does not apply, the parties have contractual freedom to agree on a reasonable deposit amount and conditions for its return.

A comprehensive Canadian Room Rental Agreement must clearly identify both parties by full legal name and provide complete contact information. The agreement must describe the rental property by full address and identify the specific room being rented — including its location within the home, approximate dimensions, whether it has a locking door, and whether it is furnished. The agreement must clearly distinguish between the tenant’s private space (the bedroom) and the shared common areas (kitchen, bathroom, living room, laundry room, yard).

The rental term (month-to-month or fixed-term), monthly rent amount in Canadian dollars, payment due date, and accepted payment methods must be stated. Interac e-Transfer is the most common payment method for room rentals in Canada. The agreement should specify whether a security deposit is required, the amount, and the conditions for return — with a clear statement about whether the provincial RTA applies and how the deposit rules are affected. The tenant’s obligations regarding utilities should be clearly stated: which utilities are included in the rent and which the tenant pays separately.

House rules are the most distinctive element of a room rental agreement. The agreement should address quiet hours, smoking policy, guest and overnight visitor policies (including frequency and advance notice requirements), pet policy, kitchen and bathroom usage rules, laundry schedule, cleaning responsibilities for shared spaces, food storage arrangements, and any parking provisions. The notice period for termination must be specified — 30 days is standard for room rentals outside the RTA, but statutory minimums apply where the RTA governs. The agreement should include a clear statement about whether the provincial RTA applies to the arrangement, based on whether the tenant shares a kitchen or bathroom with the homeowner. Entry and privacy provisions should state that the homeowner will provide at least 24 hours’ notice before entering the tenant’s room (except in emergencies), and the governing law clause should reference the province where the property is located.