The Ultimate Guide for Landlords in Toronto

Owning a rental property in Toronto can be a rewarding experience—but let’s be honest, it’s not always a walk in High Park. Between navigating the competitive Toronto rental market, finding great tenants, dealing with maintenance requests, and staying compliant with landlord-tenant laws, it’s a lot.

That’s where this guide comes in! Whether you’re a seasoned landlord or just exploring the Toronto real estate market, this comprehensive guide for Toronto landlords will walk you through everything you need to know to succeed.

Table of Contents

• How and Where to Post Your Rental
• Where to Advertise
• What is a Legal Apartment?
• How Much to List For
• What is Part of a Lease?
• Landlord Rights and Responsibilities
• How to Screen a Tenant and What to Ask For
• Landlord’s Rental Agent: Roles and Responsibilities
• DIY vs. Agent: What’s Best for You?
• Agent Fees: What to Expect
• Final Thoughts

How and Where to Post Your Rental

So, you’ve decided to rent out your property—congrats! Now comes the fun part: making sure potential tenants can actually find it. The right listing can make all the difference in finding a great tenant.

When it’s time to rent out your property, visibility is key in the Toronto rental market. Start by preparing your property: clean, declutter, and make any necessary repairs. Next, decide where to advertise and how to make your listing stand out.

Where to Advertise

Gone are the days of simply sticking a “For Rent” sign on the lawn. The best way to attract tenants in Toronto is to advertise on the right platforms. These days, you’ve got plenty of online options to make your property shine. :

• Kijiji: Free but requires vigilance against scams.
• Craigslist: A widely used option, though outdated for some demographics.
• Viewit.ca: Paid option (~$55/month) with enhanced visibility.
• Facebook Marketplace: Great for reaching local renters quickly.
• PadMapper: Maps out your listing for renters searching by location.
• Zumper: Popular with younger renters and integrated with PadMapper.

Want maximum exposure? An agent can list your property on the MLS and connect with vetted renters through professional networks.

What is a Legal Apartment?

Renting out a property is great, but first, you need to make sure you’re playing by the rules. Nobody wants to end up in hot water over zoning issues! Before listing your property, ensure it’s legal. Here’s what that means:

• Zoning Compliance: Adhere to city bylaws for apartments in houses. For example, basement apartments need proper entrances, windows, and fire safety measures.
• Condo Rules: If you’re renting out a condo, make sure the condo board allows rentals and that you’re following their policies.
• Proper Licensing: Depending on your property type, you may need a landlord license or adhere to registration requirements.

Getting these details right upfront will save you from headaches (and fines) later.

How Much to List For

Ah, pricing—this is where landlords often stumble. Go too high, and your listing will sit there collecting dust. Go too low, and you’ll be leaving money on the table. So how do you strike the perfect balance?

Setting the right rental price is key to attracting the right tenants:

• Research Comparable Listings: Look at similar properties in your area.
• Use a CMA (Comparative Market Analysis): A real estate agent can provide one to help you determine a fair market price.
• Avoid Overpricing: This can deter potential tenants.

Remember, the Toronto market moves fast—price it right, and you’ll have tenants lining up in no time.

What is Part of a Lease?

A lease isn’t just paperwork; it’s your property’s rulebook. Get it right, and you’ll set the stage for a smooth landlord-tenant relationship.

A lease agreement is a legally binding document that outlines::

• Rent Amount and Due Dates: Spell out how much and when rent is due each month.
• Lease Duration: Whether it’s a fixed term (like a year) or month-to-month, make sure it’s clear.
• Responsibilities: Who handles utilities? What about lawn care or snow removal? Get it in writing!

Ontario’s Standard Lease Agreement is a great starting point and legally required for most rentals. Use it as your blueprint. You can access it here.

Landlord Rights and Responsibilities

Being a landlord isn’t just about collecting rent—it comes with rights and responsibilities. Know yours, and you’ll save yourself a ton of headaches.

Your Rights

• Collect Rent: On time and as agreed in the lease.
• Access the Property: With 24-hour notice for repairs or showings.
• Enforce Lease Terms: Such as rules on smoking or pets (where applicable).

Your Responsibilities

• Maintain the Property: Ensure it’s safe and liveable.
• Respect Tenant Privacy: Provide proper notice before entering.
• Follow Rent Control Laws: For properties built before November 15, 2018, rent increases are capped annually by the Ontario government.

Helpful Resource: Ontario Landlord and Tenant Board (LTB)

How to Screen a Tenant and What to Ask For

A good tenant can make your life easy, while a bad one can turn it into a nightmare. Screening is your best defense.

Screening tenants thoroughly can save you headaches down the road. Here’s what to do:

1. Request Documents: Credit check, employment letter, and references from past landlords.
2. Interview the Tenant: Ask about their rental history, pets, and other important factors. Conduct the interview via Zoom or a video app. Get a sense of their personality, communication style, and whether they are a good fit.  Afterall, this is essentially a stranger you are letting live in your home. Take your time and learn about them.  

As a real estate agent, I always do this for my landlord clients. If landlords prefer not to attend, I record the session and share it for their review.

Based on experience, I know what to ask, but if landlords have specific questions,  I recommend including them too.  

Pro Tip: If the prospective tenant, doesn’t want to do a video call, consider that a red flag and move on.  

1. Verify the Information: Call references and double-check employment details.  Google the business that employs them, double check the address, the phone number. Is there a company website? LinkedIn Profile?  There are many fake professional-looking employment letters with even fake HR phone numbers from a simple app on your phone.

Pro Tip: Other red flags include vague answers, refusal to provide documents, or a history of late payments. It’s worth taking your time here—it’s better to have a vacant unit than a nightmare tenant.

For more tips on avoiding scams, check out my blog about tenant scams.

Helpful Resources:

• Equifax Canada
• TransUnion Canada
• Ontario Residential Tenancies Act

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DIY vs. Agent: What’s Best for You?

Should you go it alone or hire a pro? Let’s break it down:

• DIY Landlords: If you have the time, experience, and patience to manage everything, this can save you money. Just remember—you’re on the hook for advertising, screening, and handling paperwork.
• Using an Agent: A Toronto rental agent handles everything, from crafting your listing to screening tenants and managing lease agreements. It’s a hassle-free option for busy landlords. Plus, agents bring market expertise and access to MLS listings, which can attract top-notch tenants.

If you value your time or aren’t familiar with the ins and outs of renting, an agent can be worth every penny.

Landlord’s Rental Agent: Roles and Responsibilities

A rental agent isn’t just someone who posts your listing and hopes for the best. We’re your partner in the leasing process, offering:

• Expert Vetting: Agents use professional apps and tools to verify documents, screen tenants, and flag scams.
• Legal Knowledge: They know the laws inside and out, so you won’t miss any compliance details.
• Experience: Agents know what to look for—good and bad—in potential tenants.
• Professional Marketing: From high-quality photos to listing on the MLS, agents can maximize your property’s visibility.
• Market Knowledge: They’ll help you price your property competitively.
• Time-Saving: Let someone else handle the legwork.
• Ongoing Support: Not all agents do this, and it’s more in the ball park of a proerpty mangement company but some agents like me can offer continued (and FREE) advice and assistance throughout the duration lease.  Having someone in your corner when you need it is huge, but remember, most agents don’t do this, so be sure to ask beforehand or just call me! ;)

Having a trusted professional on your side takes the stress out of being a landlord and helps you maximize your investment.

Agent Fees: What to Expect

Wondering how much hiring a professional will cost? Here’s a quick breakdown.

In Toronto, agent fees are typically paid by the landlord and amount to one month’s rent plus HST. This fee is split between the listing agent and the tenant’s agent.

You only pay the fee if your property gets successfully rented, and it is paid on moving day.  

It’s essentially like the agent works on consignment for you and your home.  

When you think about it like that, it’s a pretty darn good deal for you!

Final Thoughts

Ready to take the stress out of renting your Toronto property? Whether you’re looking for expert guidance or just have questions, I’m here to help.   Reach out and let's chat!

Thanks for reading and have a great day! 👋 - Tyson CR

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