Renting a property in Ontario is a significant decision that requires careful consideration and knowledge of your rights and responsibilities as a tenant. This comprehensive guide is designed to help tenants navigate the process of renting properties in Ontario, ensuring a smooth and informed rental experience.
1. Understanding Ontario’s Rental Laws:
- Familiarize yourself with the Residential Tenancies Act, which is the law that governs most aspects of residential
tenancies in Ontario.
- Understand that disputes between landlords and tenants are heard by the Landlord and Tenant Board, a tribunal in
the province of Ontario designated under the Residential Tenancies Act.
- Stay informed about any updates or changes in rental laws, as they may impact your responsibilities and rights as
a tenant.
2. Determine Your Budget:
- Establish a clear budget to understand how much you can afford in monthly rent, considering other expenses like
utilities, transportation, and groceries.
- Ontario offers a diverse range of neighborhoods and communities. Take the time to explore different areas and find
the one that suits your needs, budget, preferences, and lifestyle.
- Research local rental prices to ensure that your budget aligns with the prevailing market rates in your chosen
area. Working with a REALTOR® can greatly assist in this process.
3. Seek Representation:
- Ask your REALTOR® about a Tenant Representation Agreement, required under the Trust in Real Estate Services Act to
be signed at the outset of a REALTOR® providing their knowledge, advice and services to you.
- In addition to services, this agreement extends several protections and duties to you as a tenant, including the
duty of conscientious care, obedience, loyalty, good faith and confidentiality and ensures that your interests come
first.
4. Start Your Search:
- Work with your REALTOR® in your search for rental properties. They will scour the market using various resources,
including the Multiple Listing Service System, online rental platforms, real estate websites, classified ads, and
social media groups.
- Your REALTOR® will book appointments and attend viewing appointments with you, sharing their opinions and
experiences with you along the way.
- During these viewings, pay close attention to the property’s condition, safety features, and available
amenities.
- Prepare a list of questions that your REALTOR® will ask the landlord or property manager after the viewing,
covering topics such as maintenance procedures, lease terms, and any specific rules or restrictions.
5. Proof of Income and Credit Report:
- As you search for a suitable property, you’ll need to gather some documentation for review by the landlord of the
property you choose to submit an offer on.
- You will be required to provide proof of employment, which may include submitting an employment confirmation
letter, recent paystubs, Notice of Assessment and/or bank statements. Get these documents ready ahead of time so
that you are not scrambling when ready to submit an offer.
- You will also be required to include a credit score and report when submitting an offer. Many landlords prefer
that prospective tenants submit an Equifax Credit Score and Report. You can get yours through the link below.
6. Submitting an Offer
- Once you decide on a suitable property you will submit an offer to lease it. This offer includes your credit report
and proof of income; as well as several documents prepared by your REALTOR®.
- The Residential Tenancies Act specifies that all Ontario residential tenancies must be drafted on the Ontario
Residential Tenancy Agreement (Standard Form), which can be accessed through the link below:
- Another document required to be submitted with an offer is a rental application, which outlines your residence history, employment history and provides personal references to a prospective landlord. Get a head start on completing our online rental application by clicking the link below:
- Offers to lease are oftentimes made irrevocable for a fixed period of time, over which a landlord is afforded some
time to review your supplemental documentation and make a decision as to whether you are a suitable tenant. This
timeframe can range, but usually falls between 24 and 48 hours.
- A landlord will respond to your offer with one of three decisions: they may accept your offer, reject your offer
or submit a counter-offer with modified terms and conditions.
- Landlords oftentimes counter-offers to lease for many reasons, to modify terms and conditions, to change the start
date of the lease or to request a higher rent.
7. Lease Agreement & Deposits:
- Carefully review the lease agreement before signing. Ensure you understand all the terms and conditions, including
the rent amount, lease duration, and maintenance responsibilities.
- Seek clarification from your REALTOR® on any clauses or language that you find unclear or concerning. It’s
essential to have a clear understanding of your obligations and rights as a tenant.
- Once both parties have affixed their signatures and the accepting party has confirmed acceptance of an offer or
counteroffer, then the agreement is binding, and you will be required to submit a deposit usually equal to last
month’s rent plus first month’s rent.
- If the landlord is working with a REALTOR®, the deposit is oftentimes deposited in their brokerage’s trust
account.
8. Closing Procedures:
- Prepare any deliverables required under your lease, which may include post-dated cheques, tenant insurance, key
deposit cheque and/or utility transfer confirmations, whichever applicable and submit them to your landlord.
- Upon moving in, conduct a thorough inspection of the property and document its condition. Make note of any
pre-existing damage or issues and take photographs if necessary.
- Report any problems or concerns to the landlord or property manager in writing, and keep copies of all
communication for your records.
- On the start date of the lease, your landlord will provide you a set of keys and garage or entry remotes (if
applicable), ensure that you take good care not to lose or damage them over the term of your lease.
9. Ongoing Obligations:
- As a tenant you have several rights and responsibilities to your landlord prescribed under the Residential
Tenancies Act, the most important of which is paying your agreed-upon rent on time and in advance of the first day
of each new month of your lease.
- You are also required to keep the property in a good state of cleanliness and to promptly report any and all
repairs that arise in your rental unit to the landlord.
- Keep detailed records of all communications related to repairs, including dates, descriptions of the issue, and
any follow-up actions taken.
10. Evictions, Terminations and Disputes:
- When it’s time to move out, comply with the notice period specified in your lease agreement. Typically, this
notice period is 60 days, but it can vary.
- Before leaving, request a move-out inspection with the landlord or property manager to ensure any necessary
repairs or deductions from your security deposit are discussed and agreed upon.
- Understand that you can be evicted by your landlord with an order of the Landlord and Tenant Board for non-payment
of rent, conducting illegal activities, willful damage to the rental unit among several other grounds. Be cautious
and follow the terms of your lease and the rules prescribed by the Residential Tenancies Act.
- In case disputes arise between you and your landlord, it’s essential to be aware of the dispute resolution process
through the Landlord and Tenant Board in Ontario. This process is in place to help resolve conflicts fairly and
efficiently.
Renting a property in Ontario can be a rewarding experience when approached with knowledge and preparation. By
following this guide, you can make informed decisions, safeguard your rights, and establish a successful and
respectful relationship with your landlord, ensuring a satisfying and hassle-free rental experience. Whether you’re
a first-time renter or have rented before, staying informed and proactive will help you navigate the rental market
effectively. Please note this guide is intended for informational and educational purposes only and is not intended
to be a comprehensive instruction to landlords or tenants.
Working with a REALTOR® as a tenant in Ontario can provide several significant benefits that enhance your property
search and rental experience. First and foremost, REALTORS® have access to a diverse range of listings, including
properties that may not be readily available through public sources or online listings. This broad access can save
you time and effort in your property search, ensuring you have a more extensive pool of options to choose from.
Beyond access to listings, REALTORS® possess in-depth knowledge of the local rental market, including trends,
neighborhoods, and pricing. They can provide valuable insights and guidance to help you find a rental property that
aligns with your budget and preferences. REALTORS® take the time to understand your specific requirements, such as
location, size, amenities, and budget. They then tailor their search to match your criteria, saving you from sifting
through irrelevant listings and making your property search more efficient.
Time efficiency is another significant advantage of working with a REALTOR®. Property hunting can be a
time-consuming process, involving researching listings, scheduling viewings, and negotiating lease terms. REALTORS®
streamline this process by presenting you with suitable options, arranging viewings, and handling negotiations on
your behalf. This allows you to focus on other aspects of your life while they do the legwork to find your ideal
rental property.
REALTORS® also bring their negotiation skills to the table, which can be invaluable in securing favorable lease
terms and rental agreements. They advocate on your behalf, ensuring you get the best deal possible. Additionally,
REALTORS® can provide you with comprehensive market analysis, helping you understand whether the asking rent is
competitive and whether there is room for negotiation. This ensures you make informed decisions throughout the
rental process.
An important note for tenants in Ontario is that, in most cases, working with a REALTOR® does not incur any
additional costs. REALTOR® commission is typically paid by the property owner or landlord, making it a
cost-effective option for tenants seeking professional guidance during their property search.
Partnering with a REALTOR® during your property search in Ontario can simplify the process, save you time, and
ensure that you secure the most suitable rental property while protecting your rights as a tenant. REALTORS® bring
expertise, market knowledge, negotiation skills, and legal compliance to the table, making your rental journey more
efficient and less stressful.
