Guide · Investors
The Investment Property Guide
How to assess a residential rental property in Ontario: legal status, income and costs, financing, rent rules and the obligations that come with being a landlord.
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Start with the property, not the projection
A rental property is a home for someone and a business for you. Before looking at returns, understand the building: its condition, its legal status, the tenancies in place and the rules that apply in that municipality.
This guide is general information, not investment, tax or legal advice. Haider Real Estate Group does not offer securities or pooled investments.
Due diligence
- Legal status: are all units legal under zoning and the Building Code, and registered or licensed where required?
- Condition: a professional inspection covering the roof, foundation, electrical, plumbing, heating and fire separations.
- Tenancies: every lease, rent amount, deposit and any notices or disputes.
- Rent rules: units first occupied after November 15, 2018 are exempt from the annual guideline; older units are not.
- For a condominium: the status certificate, reserve fund study and any leasing rules.
Income and costs
Work from actual rents and realistic costs, not advertised or hoped-for figures. Typical operating costs include property tax, insurance, utilities the landlord pays, maintenance and repairs, management fees, licensing fees, condominium fees and an allowance for vacancy and turnover.
Plan for capital replacements, such as a roof, windows or a furnace, which are not regular costs but will arrive.
Financing
Lenders treat properties you will not live in differently from a home you will occupy, often requiring a larger down payment and assessing the rental income in their own way. Speak to a mortgage professional early and check how a lender will treat a property with existing tenants or secondary units.
Your obligations as a landlord
Owning a rental property means complying with the Residential Tenancies Act, the Human Rights Code, the Fire Code, property standards and any municipal licensing. Our Landlord Resource Centre summarises the core rules. Rental income must be reported to the CRA.
This information is general and educational. It is not legal, tax, accounting or investment advice, and rules change. Confirm requirements with the relevant authority or a qualified professional before acting.
