1. Read your condo's paperwork first
The declaration, by-laws and rules are where the building's own rules live: short-term rentals, pets, smoking, noise and parking among them. Your tenant will be bound by them too, so you want to know them before you promise anything in a listing.
If you were thinking of short stays: in Toronto, renting for less than 28 consecutive days is a short-term rental, and the City only allows that in your own principal residence. Many condo rules restrict it as well. A unit you don't live in is a lease of 28 days or more.
2. Call your insurer
Before the tenant moves in, tell your insurer the unit will be rented and ask what your policy covers once it is. Ontario's standard lease lets you require the tenant to carry liability insurance and show you proof, and the condo's own documents may require tenants to carry contents insurance too.
3. Set the rent
Rent for a new tenancy is whatever you and the tenant agree. After that, increases follow the rules in our 2027 rent increase guide, including whether your building's age puts it outside the guideline. For a sense of what similar units lease for, our Toronto rent check breaks rents down by neighbourhood.
4. Screen applicants fairly
You can ask for income information, credit references, rental history and a credit check, within the Human Rights Code. What's allowed, and what isn't, is in what a landlord can ask a renter. Apply the same standard to every applicant, and keep notes on why you chose who you chose.
5. Use the standard lease
Most private residential leases in Ontario signed on or after April 30, 2018 must use the province's standard lease. Section 2 is where you note the unit is a condo, and by signing, the tenant agrees to follow the declaration, by-laws and rules you give them. Give the tenant a copy within 21 days of signing.
Extra terms can be attached, but any term that takes away a right under the Residential Tenancies Act is void, however clearly it's written. A general "no pets" clause is the classic example, although the condo's own rules can still restrict pets. Skip the standard lease and a tenant who asks for it, and doesn't get it within 21 days, can hold back one month's rent.
6. Keep deposits legal
Two deposits are allowed: last month's rent (no more than one month) and a refundable key or fob deposit. Damage deposits and pet deposits aren't. You owe the tenant interest on the rent deposit each year, at the guideline rate. You also can't require post-dated cheques or automatic payments, though a tenant can agree to them.
7. Notify the corporation within 10 days
Under the Condominium Act, within 10 days of signing the lease (or renewing it), tell the corporation the unit is leased, with the tenant's name, your address, and a copy of the lease or a summary. The Condominium Authority of Ontario publishes a Summary of Lease or Renewal form for this. Give your tenant the declaration, by-laws and rules as soon as the lease is signed. When the tenancy ends, tell the corporation in writing within 10 days of that, too.
8. Once someone lives there
It's their home now. Entry, guests and pets each have their own rules, and the lines landlords most often cross are in 5 things landlords cannot do in Ontario. When the tenancy ends, the right paperwork depends on why, from an N11 agreement to an N12 if you're moving back in.
Quick answers
Do I need the condo board's permission to rent out my unit?
The Condominium Act asks you to notify the corporation and give it a copy of the lease, or a summary, within 10 days of signing. Read the declaration, by-laws and rules first, since your tenant will have to follow them.
Can I rent my Toronto condo on Airbnb?
Toronto only allows rentals of less than 28 consecutive days in your own principal residence, and many condo rules restrict them further.
Which lease should I use for a Toronto condo?
Ontario's standard lease, which is mandatory for most private residential tenancies signed on or after April 30, 2018.
What deposits can I take?
Last month's rent (up to one month) and a refundable key deposit. Damage and pet deposits aren't allowed.
Can I ban pets in my condo rental?
A no-pets clause in the lease is void under the Residential Tenancies Act, but the condo corporation's rules can still prohibit certain pets.
Rather hand this list to someone?
Tell us about the condo. We'll take it from a rent for your building through showings, screening and the signed standard lease, with the Residential Tenancies Act handled properly along the way.
Sources: Condominium Authority of Ontario: Leasing a condo; City of Toronto: Short-term rentals; Ontario.ca: Renting in Ontario: your rights; A guide to the standard lease for rental housing; Tribunals Ontario: A Guide to the Residential Tenancies Act. Current forms are on Tribunals Ontario, and the Landlord and Tenant Board answers questions at 416-645-8080. This guide is general information, not legal advice. nestabode · HouseSigma Inc. Brokerage.