The five most important things to know about renting in Canada

The five most important things to know about renting in Canada

Newcomers may be unfamiliar with important information about renting in Canada.

For example, tenants can enjoy many protections under some provincial rental regulations, but may fail to take advantage these protections if they haven’t learned about them.

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To give you the tools to navigate this foreign rental market, CIC News has compiled a short list of the most important things you need to know before renting a property in Canada.

Rent control

Some provinces have rent control regulations.

Such regulations limit when a landlord can raise the rent of a property, and by how much.

You may be able to save money by taking into account rent control regulations in choosing a property.

If rent control does not apply to your property, you might benefit from budgeting for larger increases on renewal.

The following table provides some detail on rent control in the applicable provinces:

Province Rent increase caps (2024, 2025) Additional restrictions Exemptions to rent control
British Columbia 2024 rent increase limit: 3.5%

2025 rent increase limit: 3%

Rent can be increased once every 12 months

Landlords must provide 3 months’ notice

Utilities and other fees can only be increased with tenant’s agreement

Manitoba 2024 rent increase guideline: 3%

2025 rent increase guideline: 1.1% economic adjustment factor

Rent increase guideline applies to most rental units Units exempt from the guideline include high-rent units and government-owned properties
Ontario 2024 rent increase guideline: 2.5%

2025 rent increase guideline: 2.5%

Note: Rent control policies only apply to residential buildings first built or occupied before November 15, 2018

Rent can be increased once every 12 months

Proper written notice of at least 90 days required

Exceptions include new buildings and most new basement apartments
Prince Edward Island 2024 rent increase guideline: 3%

2025 rent increase guideline: To be set annually by the Director of Residential Tenancy

Rent increases can occur once a year

Landlords must provide 3 months’ notice

Increase above the allowable amount requires application to Rental Office

No other provinces or territories have rent control policies at this time. Landlords in non-rent-controlled jurisdictions can generally raise rent to whatever amount they wish once your lease ends or comes up for renewal.

End of the lease/evictions

You should consider several factors prior to entering into a lease:

  • Whether your lease will auto-renew or is renewable, versus whether you will have to vacate at the end of your lease.
  • The length of notice you must give to terminate your lease (for a month-to-month lease).
  • Wrongdoings for which your landlord might be able to evict you.
  • The situations in which your landlord can evict you without any wrongdoing on your part.

The above factors will be determined by a combination of your lease agreement, and the applicable provincial regulations.

For a fixed term lease, you will be expected to vacate the property at the end of the lease.

There are exceptions to this, such as Ontario, where your lease will automatically transition to a month to month at the end of the fixed term, unless you notify the landlord you will be vacating.

For month-to-month leases you will generally be expected to give a months’ notice before terminating your lease.

In Prince Edward Island and Ontario, you must give 2 months’ or 60 days’ notice (whichever is longer).

Under certain circumstances, you could be evicted from a property, which is when the landlord terminates your lease regardless of whether you want to move out.

The situations in which a landlord can terminate your lease will vary based on the provincial jurisdiction and/or your lease agreement. But in general, landlords can evict you for failing to adhere to your obligations as a tenant, or for bad behaviour, such as

  • non-payment of rent;
  • property damage;
  • breach of lease terms;
  • health and safety violations; or
  • interfering with the enjoyment of other occupants.

There may also be reasons a landlord can evict you that are out of your control. Once again this varies by province, but here are some common examples.

  • The landlord desires to sell the home.
  • The landlord requires the property for personal use.
  • The building is to be demolished.
  • The building is no longer safe to occupy.

Landlords will have to provide written notice with the date they will evict you. Tenants across Canada have the right to dispute lease terminations through local tenancy boards or tribunals. The process for this will vary based on the province and local housing authority.

How much should I expect to spend?

This will depend heavily on the property and its location.

The table below shows the median monthly rent for some major cities for bachelor, 1-bedroom, and 2-bedroom apartments (source: zumper.com rent research portal).

City Bachelor/Studio apartment (median rent in Canadian dollars) 1-bedroom apartment (median rent in Canadian dollars) 2-bedroom apartment (median rent in Canadian dollars)
Toronto (ON) $1,900 $2,335 $2,969
Vancouver (BC) $2,315 $2,650 $3,650
Calgary (AB) $1,599 $1,790 $2,297
Edmonton (AB) $1,154 $1,389 $1,650
Winnipeg (MB) $931 $1,325 $1,725
Montréal (QC) $1,487 $1,700 $2,195

Beware condo by-laws

A unique type of property often found in Canada is the condominium, or condo. These are privately owned units within residential buildings.

Condos have different rules than other residential properties.

Tenants looking into renting a condo should ensure they are aware of applicable bylaws specific to that property.

Condo bylaws can place much greater restrictions on occupants, such as

  • Restrictions on pets; and
  • Restrictions on the number of occupants.

Either of the above restrictions would be prohibited by the Residential Tenancies Act in Ontario but are perfectly legal when it comes to condos.

Tenants should also keep in mind that condo regulations are not set in stone—there is always the possibility that the condo board may change regulations and/or implement new regulations, which could have a significant impact on the day-to-day lives of condo tenants.

Avoiding rental scams

Newcomers should be wary of potential rental scams, which are unfortunately all too common.

Falling for a scam could jeopardize your personal funds, your data, or even your physical safety.

A typical rental scam would work as follows. The “landlord” or “leasing agent” shows you a unit and it’s a great deal. You sign a lease with them and pay either a deposit, or something like first and last month’s rent (in Ontario).

Later, you find out that the person who showed you the property was not actually the landlord or leasing agent – they were never authorized to rent you the property and have simply pocketed your funds and run off.

Another rental scam could be simple identity theft – the “leasing agent” asks for your ID and other personal information, makes copies of it, and then impersonates you to take out a loan.

The best way to protect yourself from rental scams is to ensure that the person you are dealing with is a bone fide landlord or leasing agent.

The Canadian Mortgage and Housing Corporation (CMHC) provides examples of warning signs to watch out for:

  • The rent is far below the current market rate.
  • You’re asked to leave a deposit without any formal rental agreement or lease in place.
  • You’re asked to send a security deposit to a landlord outside the country.
  • You’re offered a rental unit without a background check.
  • When you ask about the rental unit, you get an email that sends you to a website asking for personal or financial information.
  • Ads show pictures of the outside of the unit only, or pictures that don’t match the actual property.