Renting out your property in Canada can be an excellent way to make some extra money. Some readers do so on a seasonal basis, while they occupy it for the rest of the year; others have extra properties that the let out year-round. The rules in Canada do vary between different provinces and territories, so we’ve put together this comprehensive guide to renting out your property in Canada in every region.
The basics of renting out your property in Canada
That said, there are some common elements across all Canadian provinces. These relate to types of contracts and to your responsibilities as a landlord.
Firstly, there are two types of legally accepted leases: written and verbal. We strong recommend written leases, both for clarity and protection in case of dispute. Whichever you use, you should clearly outline the rent in Canadian dollars, the responsible/involved parties, what you’re including and not including and the conditions that either party can end the lease under.
Secondly are your responsibilities.
Before a tenant moves in, you need to make sure that the building meets municipal property standards, zoning by-laws, fire-safety regulations and any local building codes. Contact your local government office to verify these – although you will likely have already checked this when purchasing the property.
Once the tenant’s lease begins, you have a number of responsibilities towards to them. At your expense, you must maintain the home in a good state of repair and fit for habitation. If bills are included in the rent, you must always ensure a reasonable supply of fuel, electricity, hot/cold water and internet.
However, the rules of what you need to do before, during and after the tenancy differ between province and territory. Here’s what you need to know.
There are no rent controls in Albert. By law, you can only charge one month’s deposit.
You can set any rental rate you want, but be aware that you can’t increase rent unless it’s been 365 days since the last fixing of the rent (including the beginning of the contract). You have to send a written declaration, with your signature, to your tenant stating the increase in rent.
Within a one-week period either side of the tenant’s moving-in and moving-out date, you must inspect the property with the tenant and provide an inspection report. This is to establish a base-line for the condition of the property in case of any damages. When you offer dates to the tenant for the inspection, you must give them a choice of two non-holiday days between 8:00-20:00.
You must give a copy to the tenant and store your own copy for three years after their tenancy ends. The report has to contain the date of the inspection, the names of the people’s present and your signature. You should include a list of what’s in the property and its condition (eg brand-new cupboards, table chipped at the edge).
It must also have a statement, signed by the tenant, saying they agree or disagree with the results. If the inspection was done without the tenant, you’ll need to include a statement signed by you saying this. Finally, if you conduct an inspection before the tenant has occupied the space, you both need to sign a statement saying it was done when the property was vacant.
Notice of landlord
Within a week of the tenant moving in, you need to give them a ‘notice of landlord’. This contains your name, mailing address and physical location. If you have a property manager, it can contain their details instead.
You must provide a written copy of the lease to the tenant within 21 days of the commencement date.
Ending a tenancy
A fixed-term tenancy will naturally end on its final date. For a periodic tenancy, it depends on the situation.
If you’re going to carry out major renovations that will require the property to be vacant, the notice period is 365 days.
For any other legally acceptable reason (you want to occupy the property yourself; you’re selling the property; you’re demolishing the property; you’re switching to a non-residential use), the notice period is three months for a month-to-month contract and one week for a week-to-week contract.
If it’s the tenant giving you notice, that’s one month for a month-to-month contract one week for a week-to-week contract.
The Residential Tenancy Act will be your point of reference if you’re renting out your property in Canada in B.C.
You can ask for a security deposit of up to ½ of a month’s rent. You can also ask for a pet security deposit, but only one no matter the number of pets – and this can’t include guide or service dogs. The tenant must pay this within 30 days of beginning the tenancy.
British Columbia does have rent controls. In 2018, you can only increase rents by 4%. This can also only happen 12 months after the last setting of the rent (including the beginning of the contract).
British Columbia does have rent controls. In 2018, you can only increase rents by 4%.
You need to do a condition inspection with the tenant or their nominated representative before their tenancy begins but after the previous tenant has moved out. You must also do another one with tenant after 1pm on their moving-out day. You should include the details of the home and any fittings, furniture and other goods.
Each time, you’ll need to bring a printed Condition Inspection Report, which you’ll both fill in and sign on the day. Within seven days, you’ll then need to give your tenants a copy of the report for the move-in inspection. For the move-out inspection, the deadline is 15 days.
You must provide a copy of the written lease 21 days after the beginning of the lease.
Ending a tenancy
As a landlord, there are a number of different notice periods you have to give, depending on the situation.
|Notice length||Permissible reasons|
|10 days||The tenant hasn’t paid rent or utilities, where the contract specifies they must. If they then pay within five days of receiving this notice, it is void.|
|1 month||The tenant hasn’t paid the security or pet deposit within 30 days of beginning the tenancy.
The tenant has been late at least three times with paying rent.
The tenant or their guests have seriously damaged the property or have put the health and rights of the landlord or another occupant at risk.
The tenant has sublet the property without your permission.
The tenant is involved in illegal activity that endangers the property, the landlord or any other occupants.
|2 months||The landlord plans to occupy the property or have close family occupy the property.
The landlord sells the property to someone who will occupy it.
|4 months||The landlord plans to do major repairs or reconstruction that need the property to be vacant.|
You will have to serve the tenant a Notice to End Tenancy form, which are available from the Government of British Columbia. If a tenant serves notice of leaving to you, they’ll need to give you written notice, including their name, the date, address of the property, their leaving date and their signature.
If you’re renting out your property in Canada and you’re in Manitoba, you’ll come under the rules of the Residential Tenancies Act.
You can charge a security deposit of up to ½ of a month’s rent. You can also charge one for pets. You will have to return the deposit with interest at the end of the tenancy (minus any deductions). The current rate until 31 December 2018 is 0.5% a month.
You can only increase rent once within a 12-month period, and there must be 12 months between each increase. You must fill in a ‘Notice to New Tenant’ when they move in, informing them of the current rate and the immediately preceding rate. When you raise rent for an existing tenant, you must give them a ‘Notice of Rent Increase’.
Although not obligatory, it’s highly recommended to draw up a Condition Report with your tenant. You would inspect the property together before they move in, noting the condition of the property, and then use this as a base to check against when they move out. Both parties should sign and date the report.
You need to provide your tenant with a copy of the written lease 21 days after the beginning of the tenancy. If the lease is continuing from a previous fixed-term agreement, you must give it to them no later than three months before the original one ends.
Ending a tenancy
You can give five days’ written notice if your tenant is late with their rent or if they are threatening the health and safety of another occupier. If they then pay within the five days, the notice is considered void, unless they’ve been late three times in the last year.
If you’re going to occupy the property yourself, demolish or renovate it or change its use from residential, it depends on the surrounding area’s vacancy rate, which is available on the Manitoba government site.
The same goes for if you’re going to sell the property, with the exception of fixed-term contracts, in which case it has to be three months.
In all cases apart from five-day notices, if your tenant has school-age children attending school by the property, you can’t make them leave until the school year is over.
Likewise, in all cases apart from five-day notices, you must pay your tenants’ reasonable moving fees. The maximum amount they can ask for is $500.
If a tenant wishes to end their contract, they must give one months’ notice.
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Renting out your property in Canada and based in New Brunswick? Your reference law is the Residential Tenancies Act.
You can collect a security deposit equivalent to up to one month’s rent. This then needs to be paid to the Office of the Rentalsman. You need to have contacted the Rentalsman within seven days of your tenant moving out if you want to make a claim for damages.
The Rentalsman will provide you with an inspection form. It’s not obligatory to fill this in, but it is highly advisable to protect yourself in the case of dispute. Just fill in the conditions of the property with your tenant at the beginning of their tenancy.
Your lease agreement must follow the standardised Residential Lease form. You should each have a copy and both sign both copies.
Ending a tenancy
If you’re terminating a tenancy of a length less than five years, you need to give one month’s notice. If it’s five or more years, the notice needs to be three months. The tenant must give you one month’s notice.
Newfoundland & Labrador
If you’re renting out your home in Canada in Newfoundland & Labrador, your guiding rules will come from the Residential Tenancies Act.
You can charge a security deposit of up to two weeks’ rent for week-to-week rental agreements. For month-to-month agreements and six-to-12-month agreements, it’d be ¾ of a month’s rent. In a monthly agreement, you must provide three months’ notice of a rent increase, unless there is a new service being provided.
You can charge a security deposit of up to two weeks’ rent for week-to-week rental agreements. For month-to-month agreements and six-to-12-month agreements, it’d be ¾ of a month’s rent.
You’ll need to pay interest on the security deposit when you return the money to the tenant. The interest rate is calculated by taking the average Bank of Canada rate for the last 12 month period before 30th November and then subtracting 4% from that.
You should complete the Rental Premises Condition Report together with your tenant before they move in and then after they move out. It’s recommended to sign it in the presence of a witness.
You should use the pre-defined Rental Agreement to draw up your contract. Both you and your tenant should sign and you must give them a copy within ten days of the tenancy beginning.
Ending a tenancy
You cannot give verbal notice of termination. Instead, you must write a termination notice, identifying the premises, the date of termination and containing your signature.
You can give the following termination deadlines:
|Notice length||Permissible reasons|
|Three days||When rent is three days late in a week-to-week tenancy
When a tenant causes damage to the premises
|Five days||When the tenant negatively affects the rights of the landlord or other tenants in the building|
|Fifteen days||When rent is 15 days late in a monthly or fixed-term tenancy|
|Four weeks||Week-to-week tenancies with no specified reason|
|Three months||Month-to-month tenancies and fixed-term tenancies with no specified reason|
The tenant must give you one month’s notice if it’s them handing it in, rather than you.
In the Northwest Territories, the Residential Tenancies Act will control how you’re renting out your property in Canada.
A security deposit can’t be higher than a week’s rent in a week-to-week contract or a month’s rent in a month-to-month or fixed-term contract. You can charge a pet damage deposit of up to 50% of the monthly rent.
When the tenant moves out, you must repay the deposit within ten days, including interest. In 2018, this is 0.05%.
You cannot increase the rent more than once in twelve months; you must give three months’ notice of doing so.
You should carry out an inspection before and after the tenant moves in and moves out, although it’s not legally required. If you do, you should complete the Entry and Exit Inspection Report together with your tenant.
You can have either an oral or a written tenancy in the Northwest Territories. If there is a written tenancy report, you must give a copy to your tenant within 60 days. There is no specified form this must take, but the NT government produces an exemplar.
Ending a tenancy
You need to give written notice if you’re renting out your property in Canada and you’re in the Northwest Territories. This should contain the address of the property, the date of termination and the reason for termination.
For month-to-month and week-to-week contracts, you must give 90 days’ notice of termination. For fixed-term contracts, you must give 30 days’ notice.
Renting your property out in Canada and located in Nova Scotia? The Residential Tenancies Act is your reference point.
You can only charge ½ months’ rent as security in Nova Scotia. You must place this in a trust account. The deposit is attached to the property, so, if you sell it, the deposit goes with it.
You can only increase the rent once in 12 months. The following are the compulsory notice periods per type of contract:
- Year-to-year contract: four months
- Month-to-month contract: four months
- Week-to-week contact: eight weeks
You must give the notice in writing.
You’re not legally obliged to carry out an inspection before or after the tenant moves in, but it’s highly advisable. It’s a good idea to use the Nova Scotia suggest Rental Unit Condition Form to ensure you don’t miss anything out.
You can have either a written or verbal lease. It must contain your name, address and telephone number. You have to give the tenant a copy of the lease within ten days of the tenant signing it (or moving in, depending on which happens first). You can use the Standard Form of Lease document, but it’s not a legal requirement.
Ending a tenancy
As a landlord, you can only end a tenancy – known as Notice to Quit – for specified reason. These are:
- if rent is 15 days late
- if the tenant hasn’t complied with the terms of the lease
In Nunavut, you should refer to the Residential Tenancies Act if you’re renting out your property in Canada.
For a month-to-month tenancy, you can charge a deposit of up to one month’s rent. This must be paid in entirety up front.
For a week-to-week tenancy, you can charge a deposit of up to one week’s rent. The tenant can pay half of this up front and the second half within three months.
The deposit must be returned with interest. The interest rate is calculated as equivalent to the chartered bank deposit rate on deposit receipts of 30 days.
The rent can only be increased one every 12 months. You must give three months’ written notice of the increase.
An inspection report is legally required if you request a security deposit. You should include the details of the property and fittings, as well as the names of both parties, the date and your and the tenant’s signatures.
An inspection report is legally required if you request a security deposit.
A written lease isn’t required – although it is a good idea to have one. If you have one, you should provide a copy of it within 60 days of the tenancy beginning.
Ending a tenancy
If the property’s your only residence in Nunavut, then you can give a tenant who’s lived there for less than a year 30 days’ notice, or 60 days for one who’s lived there over a year.
If they breach the terms of their contract, you can reduce the notice period to ten days.
The Residential Tenancies Act 2006 is the main source of rules for renting your property out in Canada if you’re living in Ontario.
You may charge a security deposit of up to one month for a month-to-month contract or one week for a week-to-week contract. Unlike in most of Canada, you can also charge a key deposit. You must return the deposits with interest paid every twelve months. For 2018, this is 1.8%.
Ontario does have rent controls. In 2018, you cannot increase rent above 1.8% in most circumstances. In exceptional circumstances, you can apply to the Landlord and Tenant Board for them to approve an increase in rent.
It is advisable to carry out an inspection of your property with your tenant before and after you move.
For any lease signed after 30 April 2018, you must use the mandatory Standard Lease form. A copy of this can be found on the Ontario Central Forms Repository.
Ending a tenancy
You can only give a tenant notice if they do not pay their full rent, damage the property or interfere with the enjoyment of the property by other tenants or yourself. These will normally require 20 days of notice. If a tenant repairs the damage within seven days, they can avoid eviction.
Prince Edward Island
If you’re renting out your property in Canada in Prince Edward Island, look to the Rental of Residential Property Act for reference.
You can charge a security deposit in Prince Edward Island. This can be up to one week’s rent for week-to-week contracts and one month’s rent for month-to-month contracts. You must pay interest; in 2018, the rate is 1.25%.
There’s no requirement for an inspection in PEI. The government does, however, recommend creating a checklist of items in the property to reference against.
You can use a written or verbal agreement. If it’s written, you must give the tenant a copy within 21 days of it being signed. There is a recommended Standard Form of Rental Agreement.
Ending a tenancy
For a landlord, you can only terminate a tenancy if they haven’t paid the rent, have breached the terms of the contract. The notice period is normally not less than twenty days.
For a tenant, they would give a tenant two months’ notice for a fixed-term contract. For a week-to-week and month-to-month contract, notice should be given on or before the due date of the rent and would end the tenancy the day before the next day that rent is due.
Renting out your property in Quebec is governed by an ensemble of laws under the Régie du logement.
A landlord cannot ask for a deposit in Quebec. You will come across people who do this, but it is illegal.
You must agree on any rental increases together with your tenant, but they should fit within the officially defined Regulation respecting the criteria for the fixing of rent. You can use the Calculation 2018 tool to help work out what you could charge.
In Quebec, the contract must follow the obligatory formula defined by the Régie du logement. This costs $1.99 to purchase and is compulsory to fill in in French – although the two parties may communicate in another language.
This must be sent within 10 days of conclusion of the contract. You must also inform the tenant by writing, at the moment of signature of the contract, of the lowest rent that was paid in the 12 months before their arrival.
Ending a tenancy
You may end a tenancy to perform substantial changes to the building or to occupy it yourself. Normally, the notice period is six months, unless it’s a contract of less than six months, in which case it’s one month.
If you’re renting out your property in Canada, the Residential Tenancies Act 2006 will be your guiding point in Saskatchewan.
You can ask a security deposit, pet deposit and key deposit. None must exceed one month’s rent. The tenant must pay half before moving in, if you request. The rest can be paid within two months.It must be held in a trust account and, if the tenancy is longer than five years, interest must be paid on the deposit; the rate in 2018 is 0.05%.
You should complete the Rentalsman’s Condition of Premises Checklist with your tenant before and after they move out.
If you use a written lease, you must provide a copy to the tenant within 20 days. You must include the standard conditions in your lease agreement. If they’re not explicitly included, the law will consider them to be implied.
Ending a contract
If rent is overdue by 16 days, you can evict your tenant immediately by filling in Form 7. If they breach the terms of the contract, you must serve a Notice to Vacate. Finally, if you’re going to occupy the property yourself, you must give two months’ notice.
A tenant must give you at least one month’s notice.
In Yukon, the Residential Landlord and Tenancies Act is the key reference point when you’re renting out your property in Canada.
You can charge a security deposit in Yukon of one month’s rent. The security deposit interest must be paid annually at the end of each tenancy year. It’s fixed at 2% lower than the bank prime rate.
It is a legal requirement to carry out a condition inspection when the tenant moves in and out. You can use your own form, but it must contain the same information as the government one.
You can use your own tenancy agreement, but it must contain the name and contact details of both parties, the address of the property, the tenancy dates, the rent and security deposit due and due dates and your signatures. A standard form is available from the Department of Community Services.
Ending a contract
A landlord can give the following notice periods:
|Type of tenancy||Notice period|
|Weekly||One rental week|
|Monthly||Two rental months|
|Yearly||Three rental months|
|Other||Two rental months|
Renting out your property in Canada
Renting out your property in Canada can seem daunting, but the rules are relatively simple to follow once you have everything in place. Additionally, it’s a fantastic way to earn some money while you’re not occupying your property.
The Canada Buying Guide takes you through each stage of the property buying process, with practical recommendations from our experts who have been through the process themselves. The guide will help you to: