Guide to Renting in Toronto
It’s not easy to navigate the hot Toronto rental market when it comes to finding a place to live. Vacancy rates are at an all time low, hovering around 1% meaning that landlords can be very selective when choosing who they want to rent to, and for how much. Rents have increased significantly over the last five years and they are not decreasing anytime soon.
Here is what you should know as a Tenant
Rent Increases : Toronto Landlords can only increase rent by the maximum allowed by the province. In 2019, that amount was 1.8%.
Rent Pre-Payment: Landlords aren’t allowed to ask you to pre-pay a year’s rent, no matter what your employment or credit situation is. Of course, they can refuse to rent to you – but not for a reason that’s protected under the Ontario Human Rights Code.
Damage Deposits: Landlords aren’t allowed to ask for a damage deposit and they can’t use the last month’s rent to cover the damage. Refundable deposits for keys are acceptable.
Pets: The Residential Tenancies Act allows tenants to have pets – even if a tenant signed a lease saying they wouldn’t have pets (technically, landlords can’t ask tenants to contract out of their basic rights). BUT: landlords can refuse to rent to you if you have a pet – they just can’t kick you out for having one once you’ve become a tenant. Some condos restrict pets – and the Condominium Act generally takes precedence over the Residential Tenancies Act (meaning the condo rules are more important than the tenancy rules).
The lease: You will have to sign a lease with the landlord summarizing rent due, dates, rules, and what happens at the end of your lease, etc. Leases are typically for one year and automatically transfers (unless a new lease is signed) to a ‘month-to-month’ agreement. As such the tenant will have to give 60 days notice (from the 1st of the month) before moving out. After 12 months, landlords are permitted to increase the rent.
Selling a Tenanted Condo or House Owners may sell a tenanted property but if there is a valid lease in place, the new Buyer must assume the lease and tenant which means they can’t increase your rent kick or kick you out when they take possession. If the new owner wants to move into the unit you occupy, they can only do so at the end of your lease.
Entry by the Landlord Tenants must be given 24 hours written notice before a landlord may enter the unit – unless it’s for an emergency. And yes, if a landlord is selling the condo or house, tenants have to provide access if the 24 hour notice was followed.
No Notice of Entry Required If a tenant has given notice of termination, the landlord may show the unit to prospective tenants between 8 am and 8 pm – although no notice is required, the landlord must try to tell the tenant before entering.
Toronto’s rental market is super competitive and bidding wars are common place. If a place comes up for rent on Tuesday, chances are it will be gone by the weekend. You must act fast and be prepared.
Real estate agents can help. We have access to a ton of rental listings. Here are a few reasons why you should work with a real estate agent to help you find the rental home:
- It’s free! When you work with an agent you don’t pay anything. The landlord usually pays commission to your agent, which covers the work.
- A good agent has a wealth of knowledge about the neighbourhoods, buildings and condo rules. If a building has a history of mould, or other issues, you’ll want to know about that.
- You will save a lot of time researching your options. Once you talk to your agent about your preferences, your budget etc. he/she will start looking and compiling the list of properties and start booking viewings.
- Your agent will help you understand and sign your lease. Rental agreements require a lot more paperwork than when purchasing a property. Your lease has a lot of important details, and you want to make sure you are not signing anything that will set you up for a financial risk or violates your rights.
The key to renting in a hot rental market is to be prepared. Have these things ready so you can act fast when a suitable rental becomes available
- Deposit: You will need to provide first and last month’s rent within 24 hours of an offer being accepted, and most landlords will require it to be a certified cheque or bank draft.
- Confirmation of Employment letter: The landlord will want proof that you’re employed or otherwise financially able to rent in Toronto. (Make sure you keep the original and send copies, you many need quite a few)
- References: Most good landlords will check your references before agreeing to rent their unit to you. Cell numbers are always best for easy reference checking!
- Credit Check: Most landlords will require a credit check, and it is best to know what they will find. Available online at Equifax.
Other Tips for finding the right rental.
- Be flexible Keep an open mind and be prepared to make compromises. You likely won’t get it all—location + size + cheap rent.
- Be decisive: The Toronto rental market is super-competitive. When you find a place you like, there is no time to hesitate as it is most likely to be gone tomorrow.
- Be Truthful: Don’t lie on your application as tempting as it is, why risk it. Instead focus on making a great first impression with the landlord.
Click here for a complete guide to the Residential Tenancies Act .
Click here to download the Landlord and Tenant Board’s Information for New Tenants guide with a summary of landlord and tenant rights & responsibilities.