The Newcomer’s Guide to Renting in Ontario
Moving to a new place can be both exciting and daunting, especially when it comes to finding a place to live. Here are some essential tips to help you navigate the rental market and find your new rental home.
Note that this information only applies to rentals, not “room and board” or “shared housing” situations.
What Can My Landlord Ask For?
As part of your application for the rental, your landlord can ask for:
Proof of income
Copy of Government issued ID
Personal &/or Business references (and reference letters)
Credit report (full report and score)
If you haven’t established a credit history in Canada yet, the landlord will often ask for you to provide a guarantor on the lease. However, if you have a cellphone in your own name, you may have started to establish credit history! You can check your credit history here.
Your landlord will ask you to sign a lease (the formal rental contract) for your new home. By law, the only lease that is legal in Ontario is the Residential Tenancy Agreement (Standard Form of Lease). The Province of Ontario has produced guides for tenants in multiple languages. Read that guide before you sign anything.
By law, the only security deposit that can be requested of you should be limited/equivalent to the cost of key replacements. For most properties, this would be $25-$50 but for some condominium homes may be higher due to electronic key fobs etc.
It is normal (and expected) to pay the first month’s rent and the last month’s rent when signing a lease. For example, if you are signing a one-year lease starting January 1st, the “first month’s rent” would apply to January and the “last month’s rent” would apply to December (or a later month if you are staying longer than the year). If the monthly rent is $2500, you would need $5000.
You may be asked to purchase Tenant’s Insurance.
There may be rules about smoking in the unit.
The landlord must maintain the rental unit and property, but you must repair or pay for any undue damage caused by you or your guests.
You can install decorative items, such as pictures or window coverings, but you must have the landlord’s permission to make other changes to the rental unit. Before you paint that wall, ask the landlord for permission!
What Can My Landlord Not Ask For?
The landlord and tenant can agree to additional terms that are specific to the tenancy. If agreed to, these additional rules or terms must be attached to the lease agreement. These additional terms should be written in plain language and clearly set out what the landlord or tenant must or must not do to comply with the term. If typed, the additional terms should be in a font size that is at least 10 points.
Additional terms may set out rules that are very specific to the rental unit or property, such as rules about the use of common spaces, amenities, lawn maintenance or snow clearing.
Any extra term which attempts to take away a right or responsibility under the act is void (not valid or legally binding) and cannot be enforced. Some examples of void and unenforceable terms include those that:
do not allow pets (however, the landlord can require the tenant to comply with condominium rules, which may prohibit certain pets)
do not allow guests, roommates, any additional occupants
require the tenant to pay deposits, fees, or penalties that are not permitted under the act (e.g., damage or pet deposits, interest on rent arrears)
require the tenant to pay for all or part of the repairs that are the responsibility of the landlord
The landlord and tenant may want to get legal advice before agreeing to any additional terms.
What Happens at the End of My Lease?
The end of an agreement does not mean the tenant has to move out or sign a renewal or new agreement in order to stay.
The rules of the agreement will still apply and the tenant still has the right to stay on a month-to-month basis.
What Happens if the Landlord Wants to Sell the Property?
The Landlord cannot force you to move out or evict you during the first twelve months of your tenancy even if they want to sell the property, allow an immediate family member to move in, or move in themselves. Your first twelve months of tenancy are protected by law.
If the property is sold during the first twelve months, the new owner has to honour the existing lease and let you to continue to live there and the terms of the lease do not change.
After the first twelve months of your tenancy are over (and you are now on a month-to-month lease) and the current owner, a new purchaser, or an immediate member of their family plans to move into the property, they are required to give you 60 days notice and pay you a minimum of one-months rent to move-out.
How Can I Avoid Scams?
Occasionally, dishonest people will attempt to take advantage of people looking for a rental unit and cheat them out of money. They will often use addresses and photos from legitimate listings and then post “fake listings” on social media. You might even drive by the property and see a “For Rent” sign. If you do, call the number on the sign. Be very, very cautious of renting from strangers on social media.
The Waterloo Region Police Service recently reported on an incident in Kitchener where multiple people lost money on a rental scam using social media. Always visit the property in person and meet with the landlord. Never give them money until the lease is signed and never agree to anything other than what is in the Residential Tenancy Agreement (Standard Form of Lease).
A Big Decision
Choosing the right rental accommodation for you and your family is very big decision. Many people rely on the advice of Realtors to guide them. Normally, these Realtors do not charge you, the tenant, for any assistance they provide - their fee is often paid by the landlords who appreciate the fact that the Realtor will ensure that all of the paperwork is in order. It’s always a good idea to have a professional working with you.
