What Should Toronto Homeowners Know Before Becoming a Landlord?

Before deciding to own a rental property, it's important to consider whether you're comfortable taking on the responsibilities of being a landlord. This includes screening tenants, responding to maintenance requests, dealing with unexpected repairs or emergencies, understanding your legal obligations, and becoming familiar with Ontario's landlord-tenant rules and regulations.

Many homeowners underestimate what is involved in managing a rental property. While there is no way to know exactly how you'll feel about being a landlord until you experience it, you can do your due diligence in advance and gain a good understanding of what the role entails.

If you own a condo and it is located in a managed building, find out what responsibilities fall to the condominium corporation and what remains your responsibility as the owner. Understanding this distinction can help avoid surprises later on.

If you are renting out a freehold house, the responsibilities can be even greater, as there is typically no condominium corporation or property management company overseeing the property, unless it is a condominium townhouse or a freehold property subject to a Parcel of Tied Land (POTL) arrangement. In addition to maintaining the home itself, landlords may need to consider responsibilities such as yard maintenance, leaf removal in the fall, snow clearing during the winter, dealing with wildlife such as raccoons, squirrels, skunks, or possums, pest issues, and unexpected repairs such as roof leaks or water intrusion.

While certain responsibilities can be assigned to tenants through the lease agreement, it is important to understand that Ontario's Residential Tenancies Act clearly outlines the obligations of both landlords and tenants. Any lease provision that contravenes the Act may not be enforceable. Before entering into a tenancy, make sure you fully understand your responsibilities as a landlord and seek legal advice when necessary.

It's also a good idea to begin building a network of trusted professionals before you need them. Having the contact information of reliable electricians, plumbers, HVAC technicians, roofers, and other trades readily available can save considerable time and stress when issues arise.

Many condominium corporations or property management companies maintain relationships with preferred contractors who are familiar with the building's systems and requirements. In some cases, management may even recommend or prefer that owners use these trades because they are already approved, insured, licensed, and familiar with the property. If no recommendations are available, make sure that any trades you hire are properly licensed and insured. Real estate professionals can also be a valuable resource, as they often work with a network of trusted trades on a regular basis. If you already work with a real estate agent, don't hesitate to ask for recommendations. If you don't currently have an agent, we'd be happy to share the contact information of trades we've come to trust over the years.

Some owners choose to manage their properties themselves, while others hire a property management company. Neither approach is inherently better than the other. The key is understanding the time, responsibilities, and costs associated with each option and determining which approach best suits your lifestyle and comfort level.

The purpose of considering these responsibilities is not to discourage you from becoming a landlord, but rather to ensure you fully understand what ownership may entail so that you can make an informed decision.