Sassy Invest - Real Estate in Canada

LEASE

Leasing property can be a great option for those who are not ready or able to commit to purchasing a property. Whether you're interested in leasing a condo, a residential property, or a commercial space, there are both pros and cons to consider. On the one hand, leasing can provide flexibility and lower upfront costs compared to purchasing. On the other hand, leasing may come with certain restrictions, such as limited customization options or the need to seek approval for certain changes.

ONTARIO

In order to rent in Ontario, you would need the following:

1) Government Issued IDs for all occupants (18+ years old):
Driver License (front and back), Passport, or PRD. NO Health Card.

2) A letter of employment + paystubs
Your letter should be on company headed paper with your income, position, and your supervisors' contact details: 3 paystubs will do. If you're an independent contractor or business owner, provide your latest notice of assessment or a bank statement for proof of income.

3) Get a credit history check:

Did you know that many banks in Canada offer free credit score checks to their customers? Here are some of the banks that provide this service:

RBC Royal Bank - RBC offers free credit score checks to its customers through its online banking platform.
Scotiabank - Scotiabank provides free credit score checks to its customers through its mobile banking app.
TD Canada Trust - TD Bank offers free credit score checks to its customers through its online banking platform.
BMO Bank of Montreal - BMO provides free credit score checks to its customers through its online banking platform.
CIBC - CIBC offers free credit score checks to its customers through its mobile banking app.
National Bank of Canada - National Bank provides free credit score checks to its customers through its online banking platform.

It's important to note that some of these banks may require you to sign up for a credit monitoring service or have a certain type of account to access the free credit score check. Additionally, there are also other free credit score check services available in Canada such as Credit Karma, Borrowell, Locnest, and Equifax.

4) Complete your rental application
You can either print this out and fill it manually, then scan/take a photo and send it back to the agent, OR you can open it and fill it directly online (on Mozilla Firefox browser) using the PDF edit function, save it and send it back to the agent. Click here for the application. Do not provide your SIN #, Drivers license #, or your bank account number.

5) Tenant Insurance (Optional)
Some landlord might also require tenants to have insurance. You can apply for it at Squareone.ca

FAQS

CAN YOU PROVIDE ALL THE STEPS TO LEASE MY DREAM PLACE SMOOTHLY?
OR WHAT TO EXPECT?

1) Send your agent all the required documents above
2) Ask your agent to setup the offer, sign it and agent will submit your offer
3) Wait for the answer, your offer will get either get Accepted/Rejected/or Counter Offer
4) If your offer is Accepted, be prepare to submit the deposit (1st and last month), which is required within 24 hrs. after Acceptance
5) Most brokerage required deposit to be in bank draft or wire transfer, and some might even accept Cash
6) While waiting for closing date, prepare to change/setup all the Utilities bills in your name, prepare 10 post dated cheques.
7) On closing date: Prepare to show all the confirmation of Step 6 to your agent, provide the 10 post dated cheques, and setup a date/time to get your key! Make sure to check out the property asap and take photos of the property for proof. If there are issues found, reach out to your agent.
8) Congratulations and enjoy your new place!

How does deposit or post dated cheque work?

If your move-in/closing date is May 15, 2023 for a cost of $3000/month. Then you will need to deposit first (May 15, 2023) and last month (May 15, 2024) ($3000+3000=$6000)

Then for the 10 post dated cheques, it will be dated like the following:

June 15, 2023

July 15, 2023

August 15, 2023

September 15, 2023

October 15, 2023

November 15, 2023

December 15, 2023

January 15, 2024

February 15, 2024

March 15, 2024

Remember, the payment date doesn't always have to be on the 1st, but it would go with what is on the paper: the Offer.

What is the average rent for an apartment in Ontario?

Prices vary from year to year and depending on the city. Generally, smaller cities have lower rental costs than larger cities. The average price in Toronto and the GTA for 2023 has increased to $2300. The cost can also increase and vary due to supply and demand.

What are the rental laws in Ontario?

The rental laws in Ontario are governed by the Residential Tenancies Act. This act outlines the rights and responsibilities of both landlords and tenants, including rules around rent increases, evictions, maintenance, repairs, and more.

Can landlords increase rent in Ontario?

Yes, landlords can increase rent in Ontario, but there are limits to how much they can increase it by. The maximum allowable rent increase is set by the government each year and applies to most residential rental properties covered by the Residential Tenancies Act.

How much notice is required for a landlord to increase rent in Ontario?

Landlords in Ontario are required to give tenants at least 90 days' written notice before increasing the rent. The notice must include the amount of the rent increase and the date it will take effect.

What is the maximum allowable rent increase in Ontario?

Ontario has set a limit of 2.5% for rent increases in 2023, up from 1.2% in 2022. This means that if rent was set at $2,000 per month in 2022, landlords may increase the monthly rent to $2,050 for 2023.

The guideline is the maximum a landlord can increase most tenants’ rent during a year without the approval of the Landlord and Tenant Board. For most tenants, your rent can’t go up by more than the rent increase guideline for every year.

The guideline applies to most private residential rental units covered by the Residential Tenancies Act, 2006. This applies to most tenants, such as those living in:

rented houses, apartments, basement apartments and condos
care homes
mobile homes
land lease communities

The guideline does not apply to certain types of units including:

vacant residential units
community housing units
long-term care homes
commercial properties

Can a landlord evict a tenant in Ontario for not paying rent?

Yes, a landlord can evict a tenant in Ontario for not paying rent. However, there is a legal process that must be followed, and the landlord must obtain an order from the Landlord and Tenant Board before evicting the tenant.

How much can a landlord charge for a security deposit in Ontario?

In Ontario, landlords are not allowed to charge more than one month's rent as a security deposit. The deposit must be refunded to the tenant when they move out, provided there is no damage to the rental property.

Are landlords required to provide a lease agreement in Ontario?

Yes, landlords in Ontario are required to provide tenants with a written lease agreement. The lease must include certain information, such as the rent amount, the length of the tenancy, and the responsibilities of both the landlord and tenant.

What is the process for filing a complaint with the Landlord and Tenant Board in Ontario?

If a tenant has a complaint against their landlord or vice versa, they can file a complaint with the Landlord and Tenant Board. The process involves filling out a form, providing evidence to support the complaint, and attending a hearing where both parties can present their case.

Can a landlord refuse to rent to someone in Ontario?

Landlords in Ontario are not allowed to discriminate against potential tenants based on certain factors, such as race, religion, or sexual orientation. However, they can refuse to rent to someone for other reasons, such as a poor credit score or a history of evictions.

HOW MUCH CAN I AFFORD?

CHECKLIST

Checklist for tenants moving 1-2 week before the move:

Confirm the move-in date with your landlord or property management company.

Set up your utilities accounts, including hydro, gas, and water, and ensure that they will be active on the day you move in.
Arrange for internet and cable service to be installed, if desired.
Purchase moving supplies, including boxes, packing tape, bubble wrap, and markers.
Begin packing non-essential items, such as seasonal clothing and decor.
Label boxes clearly with their contents and the room they belong in.
Arrange for a moving company or truck rental if needed.
Confirm the building's move-in procedures, such as parking and elevator usage.
Notify your current landlord and any service providers, such as your bank and insurance company, of your change of address.
Update your driver's license and health card with your new address.
Make arrangements for any necessary repairs or maintenance at your current home.
Take measurements of your new space and plan the layout of your furniture and decor.

Checklist for tenants on the day of the move:

Check the condition of the unit and note any existing damage or issues on the move-in checklist provided by the landlord or property management company.
Test all appliances, including the stove, oven, refrigerator, dishwasher, and washer/dryer.
Test all electrical outlets and switches.
Check for leaks or water damage in the kitchen and bathroom(s).
Test the heating and cooling system.
Test all doors and windows, and ensure that they open and close properly.
Check the locks on all doors and windows, and confirm that you have been provided with keys or access codes.
Familiarize yourself with the location of the circuit breaker and water shut-off valve.
Inspect the cleanliness of the unit, and note any areas that need to be cleaned or sanitized.
Take photos or videos of the unit's condition to document any existing damage or issues.
Check that all agreed-upon repairs or cleaning have been completed.

By following this move-in checklist, tenants can ensure that their new unit is in good condition and that any existing issues or damage are documented. This can help to avoid disputes with the landlord or property management company when it's time to move out.

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