Tips for tenants and landlords. Things to consider when looking for rental housing and evaluating costs.

As a general rule, housing costs should be less than 30% of before-tax household income. This includes:

• Utilities (electricity, heat and water)
• Rent
• Municipal services (if applicable)

Below are other considerations to take into account before renting:

TIPS FOR TENANTS…

While there are no perfect rentals, there is a perfect rental for you.

While you might have to compromise on a few of your wants, finding a place to rent becomes a lot easier when you know what you will and won’t settle for, including how much you want to spend.

TIPS FOR LANDLORDS…

Before deciding how much to charge for rent, find out what a comparable price would be for a similar unit in your area. Some provinces keep rental registries with information on prices over several years, or you can check our annual Rental Market Reports.

Types of housing for rent in Canada

Types of rentals

Apartment

Apartments vary from walk-up units in low-rise buildings to units located in buildings with elevator access. Amenities can vary from a single onsite washer and dryer, to full laundry rooms, common rooms and fitness facilities. Some of the advantages of apartment living include secured access and no maintenance of external grounds.

House

House rentals include townhouses, duplexes, semi-detached and single-detached houses. A basement apartment in a house is often considered an apartment. House rentals provide more space than most apartments and provide the advantage of having access to some outside spaces including patios, lawns, garden and parking.

Rooming House

Rooming houses are shared accommodations with both short-term (week-to-week) and longer-term rental options. Many rooms have their own refrigerator for a tenant’s personal use.

What do you need in a rental?

• Affordability: How much can you afford each month and still have money left over for your other bills (property insurance, cable, telephone service, Internet connection, parking, etc.)?
• Location: How close do you want to be to work, school or family and friends?
• Parking and public transportation: If you have a car, how accessible is parking? If you don’t have a car, how easy is it to go grocery shopping or to get to appointments?
• Surroundings: Do you want to be at the centre of activity, or in the quiet suburbs?
• Availability: Some rental properties are harder to find during certain months of the year. Can you wait to move for a few months so you have more variety to choose from?
• Safety: Are there a lot of break-ins or crime in the area that you need to consider?

Finding or advertising a rental property

Looking to find or advertise a rental property in Canada? Be sure to check:

• Local, community and ethnic newspapers in the area where you want to search.
• Free publications that publish rental accommodation ads are often found at local retail stores.
• Physical bulletin board postings at:
  • Libraries
  • Community centres
  • Grocery stores
  • Laundromats
  • Places of worship
• With friends, family and acquaintances in your community.
• With your campus housing office if you are a student.
• Local real estate offices found in the Yellow Pages.
• The neighbourhood where you want to live. A For Rent/For Lease sign might catch your eye.
• With a local community organization that offers housing assistance and settlement services.
• Online. Search for electronic bulletin board postings, specialized websites, online newspaper classified ads, and Canadian apartment listing websites.

New to Canada? Visit Citizenship and Immigration Canada to find an organization that might be able to help you with settlement services, including: consulting and assistance through the immigration process, as well as locating suitable housing and employment.

TIPS FOR TENANTS…

Always review new rental postings quickly and visit properties early to make sure someone else doesn’t select a prime rental before you do. This is especially important in tight rental markets when few options are available.

We’ve compiled a worksheet to help you compare rental properties so that you can find the right one for you.

TIPS FOR LANDLORDS…

Many community papers publish online classified advertising for free. This can help you avoid paying for web postings from for-profit ventures. If you do choose to pay for an online ad, find out how many unique users visit the relevant section of the website each day, and how many page-views you can expect per month. These numbers are more significant than the often inflated or misleading numbers generated from “hits” alone.

In your ad, don’t forget to highlight key features that make your property different from others in the area — newer, bigger, cleaner, safer, new appliances etc.

Visiting the rental property

Things to discuss when visiting a rental property for the first time

1. Are utilities such as heat, electricity, water, cable television, or Internet included in the monthly rental fee, or are the costs shared with other tenants? If the costs are shared, not everyone has the same usage or requirements.
2. What type of heating is used – natural gas, oil or electric? Be aware that some energy sources cost more than others (e.g. electric baseboard heaters might cost more than forced air natural gas)
3. Which utility companies service the unit? On average, how much did tenants pay before for utilities each month? Use this as a guideline only since the previous tenants’ could have had different energy needs than your own.
4. Is there parking? How much does it cost? What about additional vehicles? ,including guest parking?
5. Is there additional storage? Is this included in the rental cost? Does this include bicycle storage?
6. Is parking or laundry extra? If so, how much does it cost?
7. Is there rent control in place? If not, how will future rent increases be handled?
8. Who handles installing or moving telephone jacks, satellite dishes, or television cables?
9. Is there high speed Internet available?
10. Can changes be made to the premises, including painting?
11. Why are the current tenants are leaving?
12. If pets are allowed, what kind? Does the property need to be professionally cleaned at the end of the lease?
13. Is smoking permitted?
14. What are the neighbourhood and other tenants like?
15. What makes the property unique?
16. What security systems are in place? Have the locks been changed recently? Are there parts of the building that require key access?
17. Are there policies on overnight guests or long-term visitors?
18. Can vehicles be maintained or repaired on the property? (If applicable)

What to expect during your visit

A visit to a rental property is as much about getting to know the prospective tenant or landlord as it is about touring the space.

This will help both landlord and tenant decide if they would like to enter into a lease agreement together.

For this reason, landlords can legally ask:

• About income and where the prospective tenant works.
• How many people will be living in the home, and if there are any pets.
• If anyone who will be living there smokes.
• For written permission to run a credit check.
• For references and contact information, including from previous landlords.

Fact: It is illegal for a landlord to refuse to rent to people with children. A B.C. woman who was refused rental accommodation 5 times by landlords took her complaints to the B.C. Human Rights Commission and won compensation in each case.

Landlords cannot legally ask:

• Questions that infringe on a tenant’s Human Rights as outlined in the Code for their province.
• If there are plans to have (more) children.
• About a tenant’s ethnic background, religion, or sexual preference.
• If family will be visiting.
• For a Social Insurance Number.
• If the tenant is married, single or divorced.

If you feel that your human rights with respect to rental accommodation have been infringed upon, or if you need more information, discuss the situation with an advocacy agency or your provincial / territorial human rights office.

Safety & healthy living considerations

Safety, security and healthy living are also important considerations when looking for a place to live. Before deciding to rent, make sure to:

• Consider the nearest transit stop and parking areas if you have a vehicle. Are they isolated, or are there enough people around to walk to and from safely?
• Scan the local news for any reports of crime in the area, or call the local police station to ask.
• Look for added security beyond what you would expect for the area as this could signal a higher crime rate.
• Check the locks on the windows and doors, and ask the landlord to change them at their expense before you move in. (They are, however, not legally obligated to do so.)
• Examine sliding glass doors, like patio doors, for a reinforcement rod in the track that prevents them from being forced open.
• Check for working smoke detectors, fire exits and/or fire escapes, and fire extinguishers. For basement units, make sure the windows are large enough to crawl through.
• Look for properly vented space heaters and fireplaces with plenty of room around each for furniture to be placed safely.
• Look for the presence of mould (stains on the walls, musty smells, or rotting wood) to make sure the air you are breathing is clean.

Looking for a rental property in a rural area?

Rural districts have their own unique situations to consider, such as:

• Wells, septic systems and hard water might need more hands-on management than in the city.
• Well water will need to be tested before moving into a property and at regular intervals after.
• Large barns, sheds or outbuildings might be included in the rent and might need to be maintained by both you and the landlord.
• Road conditions vary depending on the season.
• Well water requires frequent testing for potability.
• Proximity to a fire department and hospital.
• Cell phone reception and Internet may not be as strong.

Always take detailed notes when visiting properties and interviewing prospective landlords. To help with your search, we’ve prepared a tool for you to download and take to your appointments.

TIPS FOR TENANTS

Always take detailed notes when visiting properties and interviewing prospective landlords. To help with your search, we’ve prepared a tool for you to download and take to your appointments.

Rental unit evaluation worksheet

Be on time and neatly dressed. View the property alone or with those who will be renting with you. Make sure you bring: a pen, your cheque book to make a deposit, rental history, credit references, guarantor information (if applicable) and a letter from your current employer stating your annual salary and/or a recent pay stub.

TIPS FOR LANDLORDS…

Choosing the right tenant can take extra time, but if you can afford to wait it might save you possible damages and disputes in the future.

Be sure to have all candidates complete a rental application so that they can be properly screened and verified. You can check: credit bureau, tenancy history/evictions, court records (if available) and their employment situation.

Credit reports are only provided to members of a credit bureau. Your province might also have order registries and landlord advocacy groups that can help you find out about unlawful tenants ahead of time.

Lease and rental agreements

Rental agreements between a landlord and tenant are commonly referred to as a “lease”.

In Canada, there are two types of rental agreements:

• Written lease
• Verbal rental agreement

A written lease is a good idea because it clearly specifies what a landlord and tenant are agreeing to when renting a property.

It outlines terms for:

• The rent.
• Parties responsible.
• What is included and what is not.
• Conditions for terminating the lease.

Both written and oral rental agreements define the legal rights and responsibilities for both the landlord and the tenant. This is important as they can be referred to if a conflict arises between either. Note, however, that verbal consent makes it much more difficult to refer to in the event of a dispute as each party might remember things differently.

It’s important to note that the types of dwellings covered by tenancy legislation varies by province and territory. In some provinces mobile home park residents, for instance, are protected under the provincial tenancy legislation, while in others they are excluded.

For information on Rental rights by province or territory please consult with those agencies.

TIPS FOR LANDLORDS…

Want to rent a commercial space, such a warehouse or industrial unit, and convert it to a living space? Be aware that you most likely won’t be covered by the landlord-tenant legislation in your province or territory. Space intended for commercial use offers tenants much less protection.

TIPS FOR TENANTS…

Check with your province or territory to see if you are required to provide a tenant with a copy of the legislation governing landlord and tenant relationships before entering into a rental agreement.

Signing the lease

A lease should always outline the:

• terms
• conditions, and
• duration

of the rental agreement.

It is important to review all 3 before signing.

Some leases may contain unexpected requirements.

It is important to consult a lawyer before signing if you do not understand everything in the lease, or if you are creating a lease that you want customized to your terms.

The lease should stipulate the following:

• The names of the landlord and tenant(s)
• The address of the rental property
• The agreed-upon monthly rent, with or without utilities, parking, cable, etc.
• When rent is due each month
• The amount and terms of the deposit (if applicable)
• Which repairs are your responsibility if requested by the landlord
• The term of the rental period, typically one year (but may be month-to-month or week-to-week)
• The notice period required to terminate the lease (usually this is 60 days)
• Subletting rules
• Allowable rent increases
• Restrictions such as no boarders, pets, smoking, waterbeds, etc.
• When and how a landlord can enter the residential premises
• Conditions for termination of a lease
• Terms for dispute resolution: late payment, damage and repairs, eviction, etc.
• Emergency contact information for both the tenant and landlord (including phone, fax and email)

If you are sharing accommodations, consider the following:

• The person or persons who sign(s) the lease is/are legally responsible for any other roommates.
• If 2 or more tenants sign the lease, they are responsible for paying the whole rent, and the landlord can enforce the terms against either person or both people
• If each person has a separate lease, that individual is only responsible for what is contained in theirs.

Credit checks and bad credit

In some provinces and territories, landlords can conduct a credit check to assess a tenant’s credit worthiness in order to determine if they will pay the rent on time.

Knowing your credit rating before visiting the rental property will help you to know ahead of time if a landlord will see you as a good potential tenant.

For this reason, it’s always a good idea to check your file from time to time since mistakes sometimes get recorded.

Find out your credit score

By mail (for free)

• Download Credit Report Request Form (PDF) from Equifax Canada
• Visit Trans Union Canada

Online (pay-per-use)

• Visit Equifax Canada

How credit ratings are calculated

Your credit rating is a numerical score that reflects responsible credit use. It is calculated each time a lender or potential landlord requests it.

Every time you borrow money and pay it back, your credit file is updated and is used to calculate your credit rating or credit score. Your file also contains information on:

• How you use your credit
• When you make payments
• Where you have lived
• Previous employers

Learn more about Credit Reports, Credit Scores and Credit Ratings

What happens if you don’t have a credit history?

If you have never had a loan or credit card, a landlord will have little or no information to review in your credit file. This makes it harder for them to know the financial risks of renting to you.

If you can, always establish a good credit file before looking to rent by:

• Applying for a credit card (if you don’t already have one). To find out more about how to use a credit card responsibly, visit the Financial Consumer Agency of Canada
• Making loan and bill payments on time.
• Paying the minimum balance on credit cards each month.

Remember, credit ratings will change over time but it can take months or years of demonstrating good credit to fix damages to your credit rating. On average, both positive and negative information will remain on your file for at least 6 years.

TIPS FOR TENANTS…

First time renter? Credit problems? No credit rating?

Landlords will accept a letter from someone else, called a guarantor, stating that they will assume the risk if you fail to pay rent. A guarantor can be a parent or a close friend. 

Bad credit doesn’t have to keep you from being able to rent however. Always get a receipt from your previous landlord as confirmation of your rent payments. Be up front and honest with prospective landlords and show them this history. Knowing that you pay your rent on time is becoming more important to landlords than credit in other areas.

TIPS FOR LANDLORDS…

You will need to become a member of a credit bureau in order to have access to a prospective tenant’s credit reports.

Rental payments and deposits

Deposits

Deposit amounts vary by province and territory. In most places, it is equal to the last month’s rent. Please consult with the provincial/territorial office where you will be renting to find out more.

Deposits collected have interest payments applied to them for the length of the tenancy.

When you move out, the deposit money can be used to pay for the last month’s rent. Any interest incurred will be applied to the difference in rent increase if applicable. If there hasn’t been a rent increase, only the interest will be repaid.

However, in some areas (not Ontario), the landlord may use some or all of the money to cover:

• Unpaid rent
• Cleaning the unit
• Repairs to the unit

You are not legally required to pay a deposit for a rental property in Quebec.

Landlords who accept deposit cheques, should issue receipts that clearly state the:

• Amount of the cheque
• Address of the rental property or unit
• Landlord’s name and phone number
• Name of the person who accepted the cheque

Paying rent

Rent is due on the actual day listed in the lease — e.g. September 1st. Payment received even a day later, is considered late — e.g. September 2nd. 

Late payments are treated differently by province or territory. Depending on where you live, landlords can:

• Impose a reasonable penalty
• Offer a grace period of up to 3 days
• Provide a notice to terminate the rental agreement due to arrears. The notice would no longer be valid as soon as you pay the rent owing.

Rent can be paid by cheque, electronic bank transfer or, in some cases, cash. Ask your landlord how they would like to receive payment. While post-dated cheques are convenient, it is illegal for the landlord to demand this form of payment in some provinces.

What happens if I can’t afford to pay?

TIPS FOR RENTERS…

Always pay your rent on time. Frequent late payments can prevent you from being able to renew your lease at the end of the rental agreement period.

When you can’t pay rent.

TIPS FOR LANDLORDS…

Make sure you know who is responsible for saving the security deposit. In some provinces, the Rentalsman Office holds the deposit for you and the tenant. Please consult with the local Provincial\Territorial office for any questions you may have about who is responsible for saving your security deposit.

Under no circumstance can you keep a tenant’s deposit or charge for additional repairs to the rental premises. You must negotiate additional payment with your tenant, and if they disagree you’ll have to formally apply to the local rental authority to keep the deposit or charge the tenant for damages costing more than the deposit and interest.

Roommates and pets

Here are a few things to consider before moving in with a roommate or deciding to share your accommodation.

1. Do you communicate well? You’ll want to establish guidelines for:
   • Household chores
   • Personal property
   • Keys
   • Privacy
   • Paying rent and bills
   • Handling shared expenses
   • Additional roommates
   • Overnight guests
   • Smoking
   • Food
   • Quiet time
   • Drug and alcohol use
   • Who gets the larger bedroom or better view, and if that person will be charged extra for the privilege
2. Which roommate will assume legal obligations in the case of:
   • Property damages
   • Paying rent on time
   • Having bills in their name

Rights and responsibilities vary somewhat across the country, as defined in the provincial and territorial laws. Please consult with your local provincial/territorial office if you have any questions. 

You’ll want to know these before signing the lease.

Rules about pets and smoking

The exact rules for pets and smoking depend on the legislation of each province and territory.

Generally, landlords can refuse to rent to a pet owner if they are: 

• Located in most provinces and territories in Canada.
• In Nunavut and have a private landlord.

Public housing landlords cannot refuse to rent to tenants with pets.

If you choose to violate a “no pets” clause in your lease, your landlord can evict you unless you are located in Ontario. However, breaches are treated differently by province and territory with some giving warnings before issuing a final written notice.

“No smoking” clauses in a lease are treated differently by province or territory. In some cases, it is up to the landlord to decide how they want to enforce it. However, all landlords must follow the same legal eviction procedures outlined in the province or territory’s legislation. 

TIPS FOR TENANTS…

Keep your credit rating intact. Make sure you collect your roommate’s portion of the bills on time if your name is on the phone bill, utility bill or lease. If the account is in your name, you are responsible for any late or missing payments.