Toronto

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Lease Agreements

What to know about signing rental agreements and understanding lease terms in Toronto.

Sections

1. Key Categories of Lease Agreements in Toronto

a. Standard Lease Agreement

  • In Ontario, landlords are required to use the Ontario Standard Lease Agreement for most residential rental agreements. This document is clear, concise, and ensures compliance with the RTA.
  • The agreement includes essential details such as:
    • Names of the landlord and tenant(s)
    • Rental property address
    • Lease term (e.g., fixed-term or month-to-month)
    • Rent amount and payment details
    • Utilities and services included in the rent
    • Rules about pets, smoking, and other property-specific policies

b. Fixed-Term vs. Month-to-Month Leases

  • Fixed-Term Lease: Typically lasts for 12 months. After the term ends, it automatically converts to a month-to-month lease unless renewed.
  • Month-to-Month Lease: Offers flexibility for tenants but allows landlords to increase rent (with proper notice) or terminate the lease under specific conditions.

c. Subletting and Assignment

  • Tenants can sublet or assign their lease with the landlordโ€™s consent. The landlord cannot unreasonably refuse a request to sublet or assign.

d. Rent Control and Increases

  • Toronto is subject to Ontarioโ€™s rent control laws, which limit how much landlords can increase rent annually. The 2023 rent increase guideline is capped at 2.5% for most units.
  • Units first occupied after November 15, 2018, are exempt from rent control, meaning landlords can increase rent without limits (with proper notice).

2. Costs Associated with Renting in Toronto

a. Rent Prices

  • Toronto is one of Canadaโ€™s most expensive cities for housing. As of 2023:
    • Bachelor apartments: $1,800โ€“$2,200/month
    • 1-bedroom apartments: $2,300โ€“$2,800/month
    • 2-bedroom apartments: $3,000โ€“$3,800/month
    • Prices vary by neighborhood, with downtown and waterfront areas being more expensive.

b. Utilities

  • Some leases include utilities (e.g., water, heat, electricity), while others do not. Clarify this in the lease agreement.
  • If utilities are not included, expect to pay:
    • Electricity: $50โ€“$100/month
    • Internet: $60โ€“$100/month
    • Heating (if separate): $50โ€“$150/month

c. Deposits

  • Landlords can only request a last monthโ€™s rent deposit. Security deposits (e.g., for damages) are not allowed under Ontario law.
  • The last monthโ€™s rent deposit must be applied to the final month of the tenancy.

d. Additional Costs

  • Parking: $100โ€“$200/month (if not included)
  • Tenant insurance: $15โ€“$30/month (highly recommended)

3. Procedures for Renting in Toronto

a. Searching for a Rental

  • Use reputable platforms such as:
    • Realtor.ca (official real estate listings)
    • Zumper, PadMapper, or Rentals.ca
    • Local Facebook groups or community boards
  • Consider working with a licensed real estate agent, especially for high-demand areas.

b. Application Process

  • Landlords typically require:
    • Completed rental application form
    • Proof of income (e.g., pay stubs, employment letter)
    • Credit report (e.g., from Equifax or TransUnion)
    • References (e.g., previous landlords or employers)
    • Government-issued ID
  • Newcomers without a Canadian credit history or employment may need to provide additional assurances, such as a guarantor or larger upfront payments.

c. Signing the Lease

  • Review the Ontario Standard Lease Agreement carefully.
  • Ensure all verbal agreements (e.g., repairs, included utilities) are documented in writing.
  • Both parties must sign the lease, and the landlord must provide a copy to the tenant within 21 days.

d. Moving In

  • Conduct a walkthrough with the landlord to document the unitโ€™s condition. Take photos or videos to avoid disputes later.
  • Obtain tenant insurance before moving in.

4. Legal and Local Considerations

a. Tenant Rights

  • Tenants cannot be evicted without cause. Valid reasons for eviction include:
    • Non-payment of rent
    • Property damage
    • Landlord or their family requiring the unit for personal use
  • Landlords must provide written notice and follow the legal eviction process through the Landlord and Tenant Board (LTB).

b. Rent Increases

  • Landlords must provide 90 daysโ€™ written notice before increasing rent.
  • Rent increases are only allowed once every 12 months.

c. Maintenance and Repairs

  • Landlords are responsible for maintaining the property in a safe and livable condition.
  • Tenants should report issues in writing. If the landlord fails to act, tenants can file a complaint with the LTB.

d. Discrimination

  • Under the Ontario Human Rights Code, landlords cannot discriminate against tenants based on race, religion, gender, family status, disability, or other protected grounds.

e. Short-Term Rentals

  • Short-term rentals (e.g., Airbnb) are regulated in Toronto. Hosts must register with the city, and only primary residences can be rented short-term.

5. Cultural and Practical Tips for Renting in Toronto

a. Neighborhood Selection

  • Popular neighborhoods for renters include:
    • Downtown Core: Proximity to work, entertainment, and transit.
    • Midtown (Yonge & Eglinton): Family-friendly with good schools.
    • Liberty Village: Trendy area for young professionals.
    • Scarborough: More affordable options, especially for larger families.
    • Etobicoke: Suburban feel with access to green spaces.
  • Research transit options, amenities, and safety when choosing a neighborhood.

b. Timing

  • The rental market in Toronto is competitive. Start your search 60โ€“90 days before your desired move-in date.
  • Spring and summer are peak rental seasons, so expect higher demand and prices.

c. Communication with Landlords

  • Be professional and prompt in your communication. Toronto landlords often receive multiple applications for a single unit.

d. Newcomer Challenges

  • If youโ€™re new to Canada, consider:
    • Offering several monthsโ€™ rent upfront (if financially feasible)
    • Using a guarantor (e.g., a family member or friend with a strong credit history)
    • Explaining your situation clearly to the landlord

6. Resources for Tenants in Toronto

  • Landlord and Tenant Board (LTB): Handles disputes and provides information on tenant rights.
  • City of Toronto RentSafeTO Program: Ensures apartment buildings meet property standards.
  • Ontario Tenantsโ€™ Rights Hotline: Free advice for tenants.
    • Phone: 1-888-332-3234
  • Housing Help Centres: Assist low-income tenants with finding housing.

By understanding these key aspects of lease agreements in Toronto, youโ€™ll be well-prepared to navigate the rental market and make informed decisions. Let me know if you need further assistance!