How the Rental Process Works in Ontario: A Beginner's Guide

How the Rental Process Works in Ontario: A Beginner’s Guide

Renting a home in Ontario can be confusing, especially if you are a first-time renter, student, newcomer to Canada, or relocating for work. This guide is practical, easy to follow, and walks you through the full rental process step by step so you know exactly what to expect from start to finish.

Step 1: Determine Your Rental Budget and Needs

Before you search for a rental property in Ontario, it is important to get clear on two things: your budget and what you need in a home.

Questions to ask yourself:

What neighbourhoods do you prefer?
Do you want a condo, basement, townhouse, or detached home?
How many bedrooms and bathrooms do you need?
Do you need parking or a locker?
When do you want to move in?
Any mush-have features (gym, balcony, pet-friendly, etc.)?

How much rent can you afford?

A common guidelines is to keep rent within 30-35% of your monthly income. Why? Because landlords will review:

your income stability and affordability
employment
credit score
debt-to-income ratio

These basic factors all affect whether your rental application gets approved.

Step 2: Prepare Your Rental Application Documents (Very Important)

The Rental Application and supporting documents are usually submitted together with the Offer to Lease. This is a key part of the rental process. Being prepared helps you secure a place quickly in competitive markets.

Rental Application

Brief offer summary
Tenant(s) and Occupant(s) personal particulars
Pets information (if any)
Reason to move
Current and prior residences information
Current and prior employment information
Two personal references

Common supporting documents:

Government photo ID
Employment letter (the employer to confirm your length of employment, post title and income)
Recent months’ pay stubs
Full Equifax Credit Report (you can get your free copy here: Equifax^® Consumer Credit Report)

If you are a newcomer or student, you may not have Canadian credit history yet. You can strengthen your application with:

Employment contract
Bank Statements or proof of savings
A guarantor (co-signer)

Step 3: Start Searching and Viewing Rental Properties

Once we finalize your criteria, I will send you a curated list of suitable rental properties and schedule showings at your convenience.

What we check:

Utilities included (water, hydro, gas)
Chattels and fixtures condition
Heating and cooling system
Parking and Locker
Building amenities
Overall cleanliness and maintenance

A successful showing is not just about liking the unit, it is about understanding the lifestyle you are getting.

Step 4: Submitting an Offer to Lease

When you find a rental you love, the next step is submitting an Offer (Agreement to Lease). This is a formal document that outlines all the terms of your tenancy. It is important to raise and clarify any concerns before preparing the offer, so they can be properly included and addressed in the Agreement to Lease.

Your Offer will include:

Monthly rent
Deposit
Lease commencement date
Included utilities
Parking/locker details
Any special conditions (e.g. require the landlord to fix defects found during the viewing, remove furniture that you do not need)
Term length (typically one year)

The Landlord will review your offer together with your Rental Application and supporting documents, conduct reference and credit checks, and then decide whether to Accept, Counter-offer or Decline.

Acceptance moves you into the next stage of the rental process.

Step 5: Pay Deposit and Pre-Move-In Setup

Once your offer is accepted, you will need to pay the deposit (typically the first and last months’ rent) within 24 hours or by the next business day.

Important Ontario Rental Rules:

Ontario Landlords cannot legally collect:

Damage deposit
Cleaning fee
Pet deposit
Key deposit exceeding actual replacement cost

Before move-in you will need to:

Set up hydro /gas /water accounts (depending on the property)
Purchase tenant insurance (you can get more information about tenant insurance here: Insurance Bureau of Canada)
Schedule key pick-up

On key pick-up day (can be before or on the lease commencement date), I will meet you to complete an inspection of the unit to check the condition of the chattels and fixtures. If anything looks off, we will take pictures/videos for documentation, and ask the landlord to fix any defects found.

Step 6: Move-In Day Procedures

If you are renting a condo, you must book the elevator for moving ahead of time.

On the day:

Do a walkthrough to verify any repairs were completed
Take photos of anything damaged
Report issues immediately so they are on record

Once everything looks good, you are officially home!

Final Thoughts: Renting Can Be Simple With the Right Guidance

I hope this guide helps you understand how renting works from start to finish. When you have the right preparation and support, the process is much smoother and faster.

If you are ready to start your rental search or need help renting, buying or selling, feel free to reach out anytime. I am here to guide you through every step with confidence.

For more tips and real estate insights, don’t forget to subscribe to my Blog.

Cathy | Real Estate Agent

Direct: 647-463-8810 | Email: cathy.tse@century21.ca
Instagram – Facebook – Subscribe for News – Blog – WhatsApp