How to Rent a Home in Toronto: The 3 Documents Landlords Want

For a lot of people who now own a home in Toronto, the housing story actually started with renting a condo or a house. When many of us first arrive in Canada, the first thing we look for is a good place to rent at a fair price and on fair terms. Renting a good condo early on can help you settle in, and it sets you up to take the next steps in the housing market the right way.

I'm Moe Asgarian, principal real estate broker in Toronto, and in this article I want to walk you through how to rent a good condo or home here. It really comes down to three documents, so let's go through each one.

1. The Rental Application

The first thing I want to mention is the rental application. This is a form you fill out as someone who wants to rent a place, and it asks you about basically everything: where you've lived before, what jobs you've had, whether you have a pet or a car, what your bank situation looks like, how much you have in savings, and more.

Filling all of this out can feel hard for many people. Back in Iran we didn't have anything like this, where you sit down and write out the details of your past life on a form. But the truth is, in Toronto, giving complete and accurate information here really helps. It puts the landlord's mind at ease about everything. You may need to bring work documents, they may ask for personal references, and if you're a student you write down your university address. If you lived with your parents or rented somewhere else before, you put that address too. Anything that helps the landlord get a clearer picture of who you are works in your favor. The key point is that the landlord needs to be able to call and verify what you've told them.

2. The Employment Letter

The second important document is the employment letter. Sometimes you'll also need proof of monthly income, like a pay stub. This set of documents matters a lot. One of the main things a landlord wants to know is whether you can handle the rent. They want to see that your job is stable and secure, that you work at a reputable company, and that you have enough income.

So take this letter seriously. Many companies have an HR manager you can contact to send these documents for you. Check the letter and make sure it has contact information on it, because very often the landlord or their agent will call or email to confirm your work situation with your employer. In short, the landlord wants to be confident you earn enough to pay. As a simple rule, they want your household income to be roughly three times the rent. What does that mean? If you rent an apartment for $2,000 a month, the landlord wants to see that your family income is about $6,000 a month.

3. Your Credit Report

The third document that matters a lot is your credit report. The credit report shows all your credit cards and any loans you've taken, including cards you've applied for. It can carry a lot of detail about the payments you've made. The whole point of reviewing it is to show your credit situation: it paints a good picture of how you pay your bills, your credit cards, and your loans. Are you reliable with payments, or are you always late on your installments? That matters a lot to a landlord, because they're collecting money from you every month and want to know they're dealing with someone dependable.

This document gets used in a lot of places. When you want to buy or lease something and need a loan, one of the first things the lender does is check your credit history and credit score to make sure you pay on time. All of this builds your credit score. Paying a credit card on time consistently improves it, and paying loan installments on time does the same. I'll talk more about credit scores in future videos, but generally a score of 700 to 800 from Equifax is a good score.

Equifax, TransUnion, and Your Score

Why do I say Equifax? Because there's another company called TransUnion that also gives you a credit score, but landlords usually ask for your Equifax score. With a score like that, a landlord can be pretty comfortable they're dealing with someone reliable. That said, if your score is around 650, that's usually enough to rent a condo and is a fine score, so don't worry too much.

You can get these scores from Equifax or TransUnion. There are also other companies, like Credit Karma, where you can request and see your Equifax score. But keep in mind that this request can sometimes lower your score, because Credit Karma is a middleman and not the company that actually generates the score. I'll put links to these sites and services below. You go there, enter your details, and once your identity is verified they give you the report. Depending on when you read this, the report is often free once a year, but sometimes you may need to pay around $20 to $30. You can also go in person with your ID to the offices of these companies and ask for the report there.

Bringing It All Together

So to sum up, those are the three main documents you need to rent a home. First, the rental application that collects your information. Second, the employment letter. And third, the one tied to your credit score, credit history, and payment reliability. These three are pretty much the most important things to prepare for renting your first home. The more information you can give the landlord or their agent through these documents, the better your odds of earning their trust and getting the place.

Honestly, in Toronto it really matters who a landlord rents to. A bad tenant can make life genuinely hard for them, and that's why a lot of landlords are very strict about choosing tenants. I personally don't blame them. If you need advice on renting, buying, leasing out, or selling your home, my colleagues and I at Team Asgarian can help you make the right decisions, and I'd be glad to have you join my large group of clients and family. Stay well and take care.