Peter Sigurdson - Realtor

A Guide to the Condo Leasing Process in Ontario:
Jenelle, a young professional relocating to Toronto, was excited to find her first condo rental in Ontario. She had heard that renting a condo involved specific steps, but the process felt overwhelming. With the help of her realtor, Jenelle learned how to navigate the condo leasing process in Ontario.

Here’s her story, broken down to guide you through the process.

Step 1: Finding the Right Condo

Jenelle started her search online, browsing listings on platforms like PeterSigurdsonRealEstate.com.

She wanted a one-bedroom condo in downtown Toronto with a budget of $2,500 per month. She connected with me, and we did research to narrow down options based on her preferences for location, amenities, and budget. I explained that in Ontario, realtors often assist tenants at no cost, as the landlord typically pays the realtor’s commission.

We visited a number of condos to provide a sense of what is available. Modern condos in a high-rise buildings often have a gym and a rooftop terrace. We even saw on with a dog wash facility, reflecting young professionals' affinity for their four legged companions. The listing price was $2,400 per month, and it was available for a one-year lease. Jenelle loved it and decided to move forward with an offer to lease.

Step 2: Submitting an Offer to Lease

I explained that in Ontario, renting a condo starts with submitting an Offer to Lease, a formal document outlining Trisha’s intent to rent the unit. This is similar to an offer to purchase for buying a home but tailored for leasing.

The Offer to Lease includes:

Rental Amount: Trisha offered $2,400 per month, matching the listing price. We researched recent rentals to assess what we considered to be a fair offer price. The Realtor will negotation with the seller to optimize the rental price for their client.

Lease Term: The landlord requested a one-year lease, which is standard.

Move-In Date: Jenelle proposed moving in on the 1st of the next month.

Additional Terms: The MLS listing will state what is covered in the lease amount and what extras are the tenant's responsibility. Electricity, water, and gas (heating) may be included or it may be the responsibility of the tenant to arrange their own service. Some new buildings include high speed fiber optic Internet. Research the MLS listing sheet to find out what services you must arrrange on move in.

Deposit Information: The offer noted that Jenelle would provide a deposit upon acceptance, typically the first and last month’s rent in Ontario. This is payable to the listing brokerage in the form of a bank draft.

I prepared the Offer to Lease using the Ontario Real Estate Association (OREA) Form 400, a standard document for residential tenancy agreements in Ontario. Jenelle signed the offer, and we used Docusign to email it to the landlord’s agent. The landlord accepted the offer within 24 hours, with a condition that Jenelle provide tenant qualification documents.

Step 3: The Tenant Qualification Process

Before finalizing the lease, the landlord needed to verify Trisha’s ability to pay rent and her reliability as a tenant. I assisted Jenelle through the tenant qualification process, which is standard in Ontario to ensure tenants meet the landlord’s requirements. Trisha was asked to provide:

Proof of Income: Jenelle submitted recent pay stubs from her job as a marketing coordinator, showing a stable income of $60,000 per year. Landlords typically look for tenants whose rent is no more than 30-35% of their gross monthly income.

Identity Verification: Jenelle provided a government-issued photo ID (her driver’s license) to confirm her identity.

Credit Check: The landlord requested a credit report to assess Trisha’s financial responsibility. Jenelle obtained a free report from Equifax and shared it with the landlord through Maya. Her credit score of 720 was considered strong.

Rental Application Form: Jenelle filled out a standard rental application, including her current address, previous rental history, and references from her former landlord and employer.

Other Documents: Tenancies require proof insurance in the form of Liability Insurance and Damage insurance prior to the tenant receiving the keys and commencing the tenancy. Damage insurance protects the tenants' contents in the event of water or other damage. Liability insurance is required to protect both tenant and land lord in the event of damage to the premises due to some accident such as a kitchen grease fire, electrical fire caused by a kitchen appliance, or other contingencies.

The landlord reviewed Jenelle's documents and approved her application within two days, satisfied with her stable income, good credit, and positive references.

Step 4: Signing the Standard Lease Agreement

With the offer accepted and qualifications verified, the landlord sent Jenelle the Ontario Standard Lease Agreement, a mandatory document for most residential tenancies in Ontario since April 30, 2018. We reviewed the lease to ensure she understood its key elements:

Rental Amount: The lease confirmed the rent at $2,400 per month, payable on the 1st of each month. It also noted that utilities (water and heat) were included, but Trisha would pay for hydro.

Deposit: Jenelle was required to pay the first and last month’s rent ($4,800 total) with a bank draft payable to the listing brokerage as a deposit upon signing the lease. In Ontario, landlords can only collect these two months’ rent as a deposit—no additional security deposits are allowed for damage or other purposes. Although condo leases may require a deposit for access FOBs, garage door openners, or other items, which is returned at the end of the tenancy.

Lease Term: The lease was for one year, starting on the 1st of the next month. After the first year, the lease would automatically renew as a month-to-month tenancy unless either party gave notice to end it.

In Ontario, rent increases are capped by Residential Tenacies Act.

Rights and Responsibilities: The lease outlined the landlord’s responsibilities (e.g., maintaining the unit in good repair) and Jenelle's responsibilities (e.g., keeping the unit clean and reporting maintenance issues). It also included rules specific to the condo building, like no smoking and restrictions on pets. Customarily small dogs and cats are OK. Larger dogs which may frighten other tenants would be prohibited.

Rent Increase Guidelines: The lease noted that any rent increases after the first year would follow Ontario’s rent control guidelines

Additional Terms: The lease included condo-specific rules, such as registering with the condo board and adhering to building policies (e.g., booking the service elevator for move-in with the conceirge).
Other restrictions are to comply with condo building rules such as not subleasing the unit for Air BNB. These restrictions are there to ensure not creating disturbances to other tenants.

Jenelle and the landlord signed the lease electronically, and Jenelle provided the $4,800 deposit.

Step 5: Moving In and Next Steps

With the lease signed and deposit paid, Jenelle received the keys on her move-in date. I advised her to:

Inspect the Unit: Document the condition of the condo with photos or a video to avoid disputes over damages when moving out.

Get Tenant Insurance: Trisha purchased tenant insurance for about $20/month to cover her belongings and liability, as required by the lease.

Register with the Condo Board: Trisha completed a form with the condo’s property management to register as a tenant, ensuring access to amenities like the gym and parking.

Jenelle's Takeaways

Jenelle learned that renting a condo in Ontario involves clear steps:

finding a property,

submitting an Offer to Lease,

qualifying as a tenant, and

signing the Standard Lease Agreement.

Working with a realtor made the process smoother.

Jenelle also appreciated the transparency of the Ontario Standard Lease, which protected her rights as a tenant.

By understanding the rental amount, deposit requirements, lease terms, and qualification process, Jenelle felt confident in her new home.

She was ready to enjoy her condo and start her new chapter in Toronto!

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