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What Are the Key Considerations for Renting a Home in Canada?

What Are the Key Considerations for Renting a Home in Canada?

Posted by: Admin |10 Mar 2025 17:15

Renting a home can be an exciting yet complex experience for newcomers to Canada as they embark on a new journey. Before signing your lease, you must understand the crucial facts that can significantly enhance your rental experience and help you avoid common pitfalls.

Facts to consider before renting a property in Canada

Under specific rental regulations in Canada, foreigners renting a property can get many benefits and protections. With proper insight into the provincial rental regulations governing the rental market, foreigners must ensure that they

  • follow the rental policies
  • know their rights
  • are aware of the rent control in the provinces
  • know what to consider when entering into a lease agreement
  • understand the terms of evictions
  • know how much rent to expect
  • are familiar with the condo by-laws
  • do not fall into rental scams

How do Rent Control Policies vary across Canadian Provinces?

Rent control regulations in some provinces have definite rent rise caps and other guidelines the landlord must adhere to when renting a property to a tenant. These policies allow the tenant to choose a property carefully, considering the various factors, including the rent amount. For properties not subject to rent control, the tenant can budget for more significant rent increases at lease renewal.

Landlords of non-rent-controlled jurisdictions have the right to set rents at their discretion and can increase the rent to any amount upon the lease's or its renewal's end.

The provinces or territories with rent control policies and the few critical rent control regulations in 2025 are as follows.

1.      British Columbia

·       Rent increase cap - 3 %

·      Landlords can increase the rent once a year and must give three months' prior notice.

·      An increase in utility and other charges requires tenant consent.

2.      Ontario

·       Rent increase guideline - 2.5 %

·      Rent control policies are pertinent to residential buildings constructed or lived in before November 15, 2018.

·      Landlords can increase rent once a year, and landlords must give 90 days prior written notice.

·      Rent control is exempt for new buildings and new basement apartments.

3.      Manitoba

·       Rent increase guidelines - 1.1 % economic adjustment factor

·       Rent increase guidelines apply to all rental units except for high-rent units and government-owned properties.

4.      Prince Edward Island 

·       Rent increase guideline – Fixed by the Director of Residential Tenancy

·       Landlords can increase rent once a year, and landlords must give three months' prior notice.

·       Landlords must apply to the Rental Office if the rent increase exceeds the permitted limit.

What are the estimated rent expenses in Canada?

The cost of rent can vary according to the city and type of property. The average rent in Toronto can cost between $1,900 and $2,969, Vancouver between $2,315 and $3,650, Montréal between $1,487 and $2,195, Edmonton between $1,154 and $1,650, Calgary between $1,599 and $2,297, and Winnipeg between $931 and $1,725.

Lease Agreement

Before entering and signing a lease agreement, the tenant must discuss the terms and conditions with the landowner or the leasing agent. Some of the crucial points to consider include:

  • At the end of the lease term, does the lease require renewal, or is subject to auto-renew, or require the tenant to vacate the property
  • The notice period which the tenant must give for terminating the lease
  • The wrongdoings for which a tenant can get evicted
  • Circumstances that can lead to eviction at the end of the lease period without any tenant fault

The termination of the lease depends on the provincial jurisdiction regulations and the lease agreement. Before evicting the tenant, the landlord must give a written notice containing a specific date to vacate the property. In addition, in particular situations, without the end of the lease term, the landlord can evict the tenant, and the lease can be terminated. Landlords can evict the tenant for many reasons, including default in paying the rent, violation of the agreement, creating disturbance to other residents, causing damage to the property, non-compliance with health and safety regulations, etc.

Other situations in which the landlord will ask you to vacate the property are:

  • at an event of selling the property
  • due to safety reasons of the property
  • when the property must be demolished
  • when the landlord intends to use the property for private purpose

Note: Tenants can contest the termination in a local tenancy board or tribunal, and dispute procedures vary across provinces and local housing authorities.

Condo by-laws

Tenants who rent condominiums or condos held privately inside residential properties should remember that the regulations differ from those of residential properties. Rules for renting condos can be stern, for example, limiting the number of persons residing in the unit. Further, the applicable by-laws can be changed, and the condo board can introduce new regulations at any time.

How Can You Identify a Rental Scam in Canada?

As per the Canadian Mortgage and Housing Corporation (CMHC), some of the indicators which point out a rental scam are:

  • Demanding for a deposit before a lease or a formal agreement is signed
  • The rent is not on par with the present market rate
  • Directing you to a website that requests personal and financial data
  • Misleading property pictures
  • Offering a property without any discussion or verification of your records
  • Directing to transfer the deposit to a landlord who does not reside in Canada

How can you protect yourself from rental fraud/scams in Canada?

While coming and staying in Canada can be exciting, you must exercise caution when searching for and finalizing a rental property. Without proper guidance and research, you may end up in rental fraud, in which you can lose your money, and your personal information can get leaked. In the worst scenario, your safety can get compromised. Finding a bona fide landlord or leasing agent is necessary to remain safe. An instance of rental fraud may be wherein a person impersonates the landlord or leasing agent and takes a deposit and other money, such as a month's rent, from you, never to be seen again. Another common scam is theft of identity wherein all the personal details, including ID, are collected from you, and using your data, the so-called leasing agent poses as you to take a loan. Always verify the legitimacy of rental listings and landlords to protect yourself from scams and stay safe in Canada.