A Complete Guide to Renting Out Your Apartment or Condominium in Ontario

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.