10 Things Every Toronto Landlord Must Know in 2025
December 10, 2024 · 10 min read
1. Rent control applies to most units built before November 2018
Units first occupied before November 15, 2018 are subject to Ontario's rent increase guideline (2.5% for 2025). Units occupied after that date have no rent control — you can increase rent by any amount between tenancies.
2. You must give 90 days notice for rent increases
Use the N1 form from the LTB. Increases can only happen once every 12 months, and you must follow the correct notice period.
3. The LTB backlog is real — screen tenants carefully
LTB wait times for non-payment hearings are currently 8–18 months. Prevention is far better than cure. Verify employment, check references, and use Convass verified tenant badges where possible.
4. You cannot evict for personal use without proper notice
N12 (owner's own use) requires 60 days notice and one month's rent compensation. Falsely claiming owner's use to evict a tenant carries severe penalties under the RTA.
5. Deposits are limited to one month's rent
You can collect a last month's rent deposit and a key deposit (max actual cost of replacing the key). You cannot charge a security deposit, damage deposit, or first-and-last beyond one month.
6. Maintain your property — or face an abatement
Failure to maintain the unit in good repair can result in rent abatements ordered by the LTB. Common issues: pests, mold, broken appliances, heating failures in winter.
7. Month-to-month tenancies have the same protections as fixed-term
When a fixed-term lease expires, it automatically becomes month-to-month. The tenant has the same protections — you cannot require them to sign a new lease or increase rent without proper notice.
8. You need a rental property insurance policy
Standard home insurance does not cover rental properties. Get landlord insurance that covers loss of rental income, liability, and tenant damage.
9. Income from renting is taxable
Declare rental income on your T1 general return. You can deduct mortgage interest (not principal), property taxes, insurance, maintenance, and management fees. Consult a CPA for tax strategy.
10. Document everything
Take photos and video of the unit before and after each tenancy. Keep all communication in writing. Store copies of leases, inspection reports, and notices for at least 7 years.
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