Common Considerations for First-Time Landlords

Becoming a landlord is a legal relationship as much as a financial one. A little preparation avoids most of the difficulties new landlords encounter.

Use the standard lease

For most residential tenancies in Ontario, the province's standard lease is mandatory. Add any additional terms in the space provided, and keep them consistent with the Residential Tenancies Act.

Select tenants lawfully

The Ontario Human Rights Code prohibits discrimination in housing on grounds including race, creed, sex, sexual orientation, gender identity, age, marital and family status, disability and receipt of public assistance. Apply the same criteria to every applicant, and use only the kinds of information the Code permits.

Insurance and licensing

Tell your insurer the property will be rented, and confirm whether your municipality requires a rental licence.

Keep records

Keep copies of the lease, notices, rent receipts, maintenance requests and correspondence. Good records resolve most disputes before they start.

Taxes

Rental income must be reported, and some expenses may be deductible. The Canada Revenue Agency publishes guidance, and an accountant can help with your circumstances.