Five Important Tips About Renting in Canada

Renting in Canada

Five Important Tips About Renting in Canada

 Newcomers may not be familiar with important information about renting in Canada.

For example, tenants can enjoy a lot of protections under some provincial tenancy regulations, but they may not take advantage of these protections if they haven't learned about them.

Rent Control

Some provinces have rent control regulations.

Such regulations limit the time that a landlord can increase the rent of the property and to what extent.

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

If rental control doesn't apply to your property, you may benefit from budgeting for a further increase in renovations.

The following table provides details about rent control in the relevant provinces:

Province

Rent Increase Cap (2024, 2025)

Additional Restrictions

Rent Control Exemption

British Columbia

Rent increase limit in 2024: 3.5%

Rent increase limit in 2025: 3%

The rent can be increased every 12 months.The

landlord must give 3 months' notice.

Utilities and other charges can only be increased with the tenant's agreement.

Manitoba

2024 Rent Increase Directive: 3%

Rent Increase Directive in 2025: Economic Adjustment Factor 1.1%

The rent increase directive applies to most rental units

Units exempt from this directive include high-rent units and government properties

Ontario

Rent Increase Directive in 2024: 2.5%

Rent Increase Directive in 2025: 2.5%

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

.


Exceptions include new buildings and most new basement apartments

Prince Edward Island

Rent Increase Directive in 2024: 3%

Rent Increase Directive in 2025: Determined annually by the Housing Rental Manager.

Rent increases can happen once a year


An increase in excess of the allowed amount requires an application at the rental office

No other province or territory currently has a rent control policy. Landlords in non-lease-controlled jurisdictions can typically increase rents by any amount they want after the lease ends or the lease is renewed.

End of Lease/Eviction

Before signing a rental agreement, you need to consider several factors:

  • Whether your lease  will automatically renew or  can be extended, versus whether you will have to vacate your lease at the end.
  • The notice period  you need to give to terminate your lease (for month-to-month rentals).
  • Wrong things your landlord may be able to kick you out.
  • Situations  where your landlord can evict you from your position without any wrongdoing.

The above factors are determined by a combination of your rental agreement and applicable provincial regulations.

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

There are exceptions to this, such as Ontario, where your lease automatically converts to a month-to-month lease at the end of a given term unless you notify your landlord that you want to vacate.

For month-to-month rentals, you're generally expected to give one month's notice before terminating your lease.

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

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

The circumstances in which a landlord can terminate your tenancy vary based on the jurisdiction of your province and/or your tenancy agreement. But in general, your landlord can hold you accountable for failing to meet your obligations as a tenant or for bad behavior, such as:

  • Non-payment of rent;
  • Financial losses;
  • Violation of the terms of the lease;
  • Violation of health and safety; or
  • Interfering with the pleasure of other passengers

There may also be reasons why your landlord could evict you that is out of your control. Again, this varies by province, but here are some common examples:

  • The landlord wants to sell the house.
  • The landlord needs the property for personal use.
  • The building is going to be demolished.
  • The building is no longer safe to live in.

Your landlord must provide written notice of your eviction date. Tenants across Canada have the right to  appeal the termination of the lease through local rental boards or courts. The process for this will vary by province and local housing authority.

How much should I expect to spend?

It depends heavily on the property and its location.

The table below shows the average monthly rents for bachelor's, 1-bedroom, and 2-bedroom apartments in some major cities (Source: zumper.com Rental Research Portal ):

City

Bachelor/Studio Apartment (Average Rent in Canadian Dollars)

1 Bedroom Apartment (Average Rent in Canadian Dollars)

2 Bedroom Apartment (Average Rent in Canadian Dollars)

Toronto (ON)

1900 USD

2,335 USD

2969 USD

Vancouver (BC)

2,315 USD

$2650

$3650

Calgary (AB)

1599 USD

1790 USD

2297 USD

Edmonton (AB)

1154 USD

1389 USD

1650 USD

Winnipeg (MB)

931 USD

1325 USD

1725 USD

Montreal (QC)

1487 USD

1700 USD

2195 USD

Beware of condo rules

The common type of property often found in Canada is condominiums or condos. These are private units in residential buildings.

Condos have different rules than other residential properties.

Tenants looking to rent a condo should ensure that they are aware of the laws and regulations regarding that property.

Condo rules can create many more restrictions for residents, such as:

  • Restrictions for pets ; and
  • Limitation on the number of passengers.

Any of the above restrictions are prohibited by the Housing Rental Act in Ontario, but in the case of condos, they are perfectly legal.

Tenants should also keep in mind that condo regulations are not fully regulated – there is always the possibility that the apartment board may change the regulations and/or implement new regulations that could have a significant impact on condo daily life. Tenants

Avoiding rental scams

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

Scams  can compromise your personal capital, your data, or even your physical security.

A typical rental scam works as follows. The "homeowner" or "leasing agent" will show you a unit and it's great. You sign a lease agreement with them or pay a deposit or something like the first and last month's rent (in Ontario).

Later, you find out that the person who showed you the property wasn't actually the landlord or leasing agent – they were never allowed to rent the property to you and simply pocketed your funds and ran away.

Another rental scam can be simple identity theft – a "leasing agent" asks for your ID and other personal information, copies it, and then impersonates you to get a loan.

The best way to protect yourself from rental scams is to ensure that the person you're dealing with is a well-intentioned landlord or rental agent.

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

  • The rent is much lower than the current market rate.
  • You will be asked to make a deposit without any formal rental or lease agreements.
  • You will be asked to submit a security deposit to an overseas landlord.
  • You will be offered a rental unit without a background check.
  • When you ask about a rental unit, you get an email that sends you to a website asking for personal or financial information.
  • The ads only show images from the outside of the unit or images that don't match the actual feature.