Are you planning to lease out your apartment or condominium in Ontario? Whether you own property in a bustling city like Toronto or a smaller town, finding the right tenant can be a time-consuming process. It involves setting the right price, advertising, screening potential tenants, and ensuring that all legal requirements are met.
Here’s a comprehensive guide to renting out your place in Ontario.
Ways to Look for Tenants
You have two main options when looking for tenants in Ontario: you can handle the process yourself or work with a licensed real estate agent.
- Finding Tenants on Your Own: If you choose to handle the search independently, platforms like Kijiji, Craigslist, and Viewit.ca can be useful for advertising your property. These websites have helped many landlords find tenants. However, caution is necessary when using sites like Craigslist, where scammers posing as “overseas tenants” may try to rent your apartment without viewing it. Remember, if an offer seems too good to be true, it often is. For a fee as low as $55 per month, you can advertise your property on platforms like Viewit.ca to reach more potential renters.
- Hiring a Real Estate Agent: If you prefer a more hands-off approach, you can hire a licensed real estate agent. An agent will take care of setting the rent, advertising, showing the property, screening tenants, and handling the paperwork. Typically, a real estate agent charges half of one month’s rent for their services. While this may add to your costs, it can save you time and effort, and agents often have access to a broader pool of potential tenants.
Legal Apartments in Ontario
Before renting out your apartment or condo, ensure that it meets Ontario’s legal standards for rental properties. These standards include:
- Zoning Requirements: Confirm that the property is zoned for residential use.
- Property Standards: The property must meet health and safety requirements as outlined by local municipalities.
- Occupancy Standards: Follow the guidelines regarding the number of tenants allowed per unit.
- Health, Fire, and Electrical Codes: Ensure the property complies with all applicable codes and regulations.
If you’re renting out a condominium, be aware of the rules set by your condominium corporation. For example, some condos have minimum lease term requirements and may require you to provide a copy of the lease to the property manager.
Timing: When to Advertise
In Ontario, rentals are typically advertised two months before they become available. For instance, if your apartment is available for rent starting July 1st, you would list it for rent around May 1st. This allows sufficient time to find the right tenant and complete the necessary paperwork.
Rental Costs in Ontario
Rental prices in Ontario vary significantly depending on the location. In major cities like Toronto, rents are generally higher. As of 2023, average rents for a one-bedroom unit in Toronto can range from $2,500 to $3,000, while rents in smaller towns or cities may be more affordable.
Before setting a rental price for your property, compare similar apartments in your area. You may also want to consult a real estate agent, as they have access to detailed market data to help you determine a competitive price.
The Ontario Rental Market
The rental market in Ontario has been highly active in recent years, especially in cities like Toronto, Ottawa, and Hamilton. Rent prices have risen steadily, and vacancy rates remain low, meaning landlords can often be selective when choosing tenants. The demand for rental units is expected to remain strong, particularly in larger urban areas.
The Lease Agreement
A lease is a legally binding document that outlines the terms of the rental arrangement between you and your tenant. The lease should include important details such as:
- Rent amount and due dates
- Lease duration (typically six months to one year)
- Rules regarding pets, smoking, and noise
In Ontario, leases automatically renew on a month-to-month basis after the initial term unless renewed for another fixed term. Tenants who wish to leave must provide at least 60 days’ notice before moving out.
Landlord’s Rights and Obligations in Ontario
As a landlord in Ontario, you have specific rights and responsibilities:
- Pets: If you prefer not to have pets in your property, you can choose not to rent to tenants with pets. However, once a tenant moves in, you cannot evict them for having a pet unless the building’s by-laws specifically prohibit pets.
- Rent Increases: Ontario has rent control policies that limit how much landlords can increase rent each year. For most residential properties built before November 15, 2018, landlords can only raise rent once per year by a percentage determined by the Consumer Price Index (CPI). Buildings constructed after this date are exempt from rent control.
- Entering the Unit: Landlords can enter the rental unit for repairs, maintenance, or showings with 24-hour written notice. In emergencies, landlords can enter without notice.
- Reclaiming Your Unit: If you or an immediate family member plans to move into the unit, you must provide the tenant with 60 days’ notice. Additionally, landlords are now required to compensate the tenant with one month’s rent or offer a similar unit if available. You must live in the unit for at least 12 months; failure to do so may result in fines of up to $25,000.
- Tenant Eviction: If you sell the property, and the tenant has a valid lease, the new owner must honor that lease. However, if the tenant is on a month-to-month lease, the new owner can give 60 days’ notice if they plan to move into the unit themselves.
By law, landlords in Ontario must provide tenants with a copy of the “Landlord and Tenant Board’s Information for New Tenants Brochure” at the start of the tenancy. This document outlines the rights and responsibilities of both parties.
Screening and Selecting a Tenant
Finding the right tenant is crucial for a successful rental experience. To screen potential tenants, you should ask for:
- First and last month’s rent upfront
- A recent credit check
- An employment letter or proof of income
- References from previous landlords
Additionally, ask prospective tenants to provide details about any other occupants, pets, and their rental history. Conduct thorough background checks to avoid future issues.
Renting out your apartment or condominium in Ontario can be a great source of income, but it comes with responsibilities. By following this guide, you’ll be well-prepared to find a reliable tenant and navigate the legal requirements of being a landlord in Ontario.
Step-by-Step Guide for Tenants Renting in Ontario
Renting a home or apartment in Ontario can be an exciting, yet sometimes overwhelming process. Whether you’re a first-time renter or moving to a new city, it’s important to understand the steps involved in securing a rental and what you’ll need to prepare before signing a lease. This step-by-step guide will help you navigate the rental process in Ontario smoothly.
1. Determine Your Budget
Before you begin searching for rental properties, it’s essential to figure out how much rent you can afford. A general rule of thumb is to allocate about 30% of your income to housing costs. In addition to rent, make sure you account for other expenses, including:
- Utilities: Some rentals include utilities like electricity, water, and heating, while others do not.
- Internet/Cable: Be sure to budget for your internet and cable services.
- Parking Fees: If you have a car, confirm if parking is included or if there is an additional fee.
- Renters Insurance: This insurance protects your belongings and provides liability coverage in case of accidents or damage.
2. Identify Your Must-Have Features
Make a list of what you need in a rental property. Some things to consider include:
- Location: Proximity to work, school, transit, grocery stores, and other amenities.
- Type of Property: Would you prefer an apartment, condo, or house?
- Number of Bedrooms/Bathrooms: Determine how much space you need.
- Pet-Friendly: If you have pets, ensure the property allows them.
- Laundry: Does the unit have in-suite laundry, or is there a shared facility?
3. Start Your Rental Search
Once you know your budget and requirements, start searching for rentals online or through rental agencies. Some popular websites to find rentals in Ontario include:
4. Prepare Required Documents
Landlords in Ontario typically ask for various documents during the application process to ensure you are a reliable tenant. Make sure to have the following ready:
- Government-issued ID: For verification purposes, you will need valid identification (driver’s license, passport, etc.).
- Proof of Income: Landlords often require proof that you can afford the rent. This may include recent pay stubs, a letter of employment, or bank statements.
- Credit Check: A good credit score shows landlords that you are financially responsible. Some landlords may conduct a credit check, or they may ask you to provide a recent copy of your credit report (available through Equifax or TransUnion).
- References: Landlords may ask for references from previous landlords or employers to assess your rental history and reliability.
- Rental Application Form: Many landlords will ask you to fill out a rental application. This typically includes personal details, employment information, and rental history.
5. Attend Viewings
Once you’ve found a few listings that meet your needs, schedule viewings. When attending a viewing, be sure to:
- Inspect the property carefully: Check for any visible damage, mold, or other issues.
- Ask about utilities and maintenance: Confirm what’s included in the rent (e.g., water, heat, electricity) and who is responsible for maintenance tasks like snow removal or lawn care.
- Check safety features: Ensure there are functioning smoke detectors, locks on windows and doors, and other safety measures in place.
- Clarify terms: Discuss the lease terms, rent price, parking availability, pet policies, and whether or not you can make changes (e.g., painting).
6. Submit Your Rental Application
Once you find a property you love, you’ll need to submit your rental application along with the required documents. The landlord or property manager will review your application, check references, and possibly conduct a credit check. If you’re applying in a competitive market, make sure to submit your application promptly.
7. Sign the Lease
If your rental application is approved, the next step is signing the lease agreement. This is a legally binding contract between you and the landlord. Before you sign, make sure you:
- Read the lease thoroughly: Ensure you understand all the terms, including the rent amount, due date, and lease duration (typically 12 months). Also, review any rules regarding pets, noise, subletting, and guests.
- Confirm rent payment details: Clarify how and when rent is paid (e.g., postdated cheques, e-transfers).
- Check for additional costs: Review any fees for parking, extra storage, or late rent payments.
- Understand your rights: Familiarize yourself with Ontario’s Residential Tenancies Act, which outlines tenant rights regarding rent increases, eviction procedures, and maintenance.
8. Submit First and Last Month’s Rent
In Ontario, it’s common for landlords to request the first and last month’s rent upon signing the lease. The last month’s rent will be held as a deposit and applied to your final month of tenancy. Ensure you keep a receipt for all payments.
9. Arrange Utilities and Internet
If utilities are not included in the rent, you’ll need to set up accounts with service providers for electricity, water, gas, and internet. Be sure to do this before your move-in date to avoid any interruptions in service.
10. Move In and Conduct a Walkthrough
Before moving in, arrange a final walkthrough of the property with your landlord. Use this opportunity to:
- Document any existing damages: Take photos of the property to record its condition upon move-in. This will protect you from being held responsible for damages when you move out.
- Confirm repairs: If the landlord agreed to any repairs or upgrades, ensure they are completed before you move in.
- Get keys and access codes: Make sure you receive all necessary keys and information for building access (e.g., garage, mailboxes).
11. Get Tenant Insurance
While not mandatory, tenant insurance is highly recommended. It covers your personal belongings in case of damage or theft and provides liability coverage if someone is injured in your rental unit.
12. Know Your Rights as a Tenant
As a tenant in Ontario, you have several rights under the Residential Tenancies Act, including:
- Protection against unreasonable rent increases: Rent can only be increased once every 12 months and must follow guidelines set by the provincial government.
- Right to a safe and well-maintained unit: The landlord must keep the rental property in good repair and ensure it meets safety standards.
- Right to privacy: Landlords must give 24 hours’ notice before entering your unit, except in emergencies.
For more information, you can visit the Landlord and Tenant Board’s website or download the “Information for New Tenants” guide.
Final Thoughts Renting a home in Ontario doesn’t have to be a daunting experience. By following these steps, preparing your documents in advance, and understanding your rights as a tenant, you can confidently find the perfect rental property. With thorough research and preparation, you’ll be well on your way to securing a great place to call home.
