How to Rent Out Your Condo

Check Your Condo Rules First

Before listing your condo for rent, review your condominium corporation's declaration, bylaws, and rules. Some condo boards restrict or regulate rentals, and failing to follow these rules can result in fines or legal action from the corporation.

Common restrictions include minimum lease terms (often 12 months), requirements to register tenants with management, and rules about short-term rentals like Airbnb. Some newer condos built after November 2018 may have additional rental restrictions in their declarations. Ask your property manager for the most current rules before proceeding.

You will also need to provide your tenant with a copy of the condo rules. Under Ontario law, condo rules that are reasonable and consistent with the Condominium Act apply to tenants just as they apply to owners.

Get the Right Insurance

Standard homeowner insurance does not cover rental properties. You need to switch to a landlord insurance policy, sometimes called a rental property policy. This covers you for liability if a tenant or their guest is injured, property damage, and loss of rental income if the unit becomes uninhabitable.

Notify your condo corporation's insurance broker as well. The corporation's master policy covers the building structure and common areas, but your unit improvements and liability are your responsibility. Your tenant should also be encouraged to carry tenant's insurance to cover their personal belongings and their own liability.

Set the Right Rental Price

Research comparable rentals in your building and neighbourhood to set a competitive price. Check The Rental Market for current rental data and comparable listings in your area. Overpricing leads to extended vacancy, which is far more costly than a slightly lower monthly rent.

Factor in your carrying costs when determining your minimum acceptable rent. This includes your mortgage payment, condo fees, property taxes, insurance, and any income tax implications. Keep in mind that rental income is taxable in Ontario, though you can deduct eligible expenses like condo fees, property taxes, insurance premiums, and maintenance costs.

Prepare Your Condo for Tenants

A clean, well-maintained unit attracts better tenants and commands higher rent. At minimum, ensure the unit is professionally cleaned, all appliances are in working order, and any damage is repaired before showings.

• Deep clean the entire unit, including appliances and bathrooms
• Repaint walls in a neutral colour if there is visible wear
• Replace any damaged flooring or fixtures
• Test all appliances and ensure they are functioning properly
• Change locks and provide new keys to the tenant
• Document the condition of the unit with photos before move-in

List and Market Your Condo

The most effective way to find tenants in the GTA is to list your condo on the MLS through a licensed real estate agent. MLS listings reach the widest pool of qualified tenants, and many tenant searches begin on realtor.ca and related platforms.

Your listing should include professional photos, accurate square footage, a list of included appliances, parking and locker details, condo amenities, and the lease terms. Be clear about what is included in the rent, such as utilities, cable, or parking.

Screen Your Tenants Carefully

Tenant screening is one of the most important steps in the rental process. A thorough screening includes a credit check, employment verification, references from previous landlords, and proof of income. You want to ensure the tenant can comfortably afford the rent and has a track record of being a responsible renter.

Under the Ontario Human Rights Code, you cannot discriminate against prospective tenants based on race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, age, marital status, family status, disability, or receipt of public assistance. You can, however, assess their ability to pay rent and their rental history.

Use the Ontario Standard Lease

As of April 30, 2018, all new residential tenancies in Ontario must use the Ontario Standard Lease. This is a mandatory form created by the provincial government that standardizes the terms of residential leases. You cannot use a custom lease that omits or contradicts the standard terms.

The Standard Lease covers the basics: rent amount, payment date, lease term, what is included, and the rules about deposits. You can add additional terms in the designated section, but these terms cannot conflict with the Residential Tenancies Act (RTA). If a term in your lease conflicts with the RTA, the RTA prevails.

Understand Your Obligations as a Condo Landlord

As a landlord in Ontario, you have specific legal obligations under the Residential Tenancies Act. You must maintain the unit in a good state of repair, comply with health and safety standards, and ensure the tenant has quiet enjoyment of the unit. You are also responsible for ensuring the unit meets all municipal property standards.

You must provide at least 24 hours' written notice before entering the unit, and entry is only permitted between 8 a.m. and 8 p.m. for specific reasons outlined in the RTA. Emergency situations are the exception. Respecting your tenant's privacy is not just good practice; it is the law.

Stay on top of condo board communications. If the building schedules maintenance, fire inspections, or construction that affects your tenant, you are responsible for notifying them. Being a responsive and organized condo landlord reduces disputes and keeps your tenancy running smoothly.