How to Rent Out Your First Home in Toronto

Renting out your first condo or house is one of those things I've talked through with friends and clients more times than I can count. If you own a place in Toronto and you've never rented it out, the question is always the same: where do I start, and how do I do this so I actually end up with a tenant I'm happy with? It doesn't matter whether it's a condo or a multi-bedroom house. The approach is the same.

Finding the right tenant is a lot like hiring the right employee. It matters, it's usually not easy, and it takes time. The single most important thing to understand is the tenant's income, and where that monthly money actually goes. As a rough rule, if about a third of a household's income goes to rent, you're in good shape. But you also want the rest of the picture: how many cars, any loans, what their fixed monthly costs look like.

Start with the employment letter

Read the employment letter carefully, and sometimes check the company itself: how long it's been around, whether it's legitimate. We'll often call the employer and confirm the basics, what the person earns and how long they've been there. Tenure matters. If someone started two or three weeks ago and hasn't cleared probation yet, keep that in mind. Between two candidates with otherwise identical applications, the one with the steadier, more secure job is the better bet.

Read the rental application closely

The rental application is a lot like a job interview. Get them to tell you a bit about themselves first, then read the form closely and look for anything that doesn't add up. Sometimes everything is clean: they've changed jobs over the years, income went up, they've moved around. Other times there are gaps and question marks. Same goes for household size, pets, and the rest. What you want is consistency and a sense that they're being straight with you.

Check credit history and references

Ask for a credit report. It tells you a lot, including past addresses you can cross-check against the rest of their paperwork. What I care about most is how they handle monthly payments, because you'll be collecting rent on a set date every month. A 650 to 700 score on Equifax is decent; 700 to 750 and I feel a lot better. Then call their references, including past landlords, but take it with judgment: a landlord who wants them gone might not give you the full story.

Here's the part that's less comfortable. In the real world, some people doctor their credit reports and income documents, and if you don't have access to proper sources, you may not catch it. For most of us this property is the biggest investment we'll ever own, and the tenant's payment is what covers the mortgage. So put your mind at ease: ask for bank statements, stamped by the bank, that actually show the income landing in the account. And check LinkedIn, the person, the company, and the references, because in a city like Toronto people with real professional jobs are on there.

Trust your read, then get help

There's no such thing as a perfect, problem-free tenant, so don't wait for one. You're looking for someone who scores well across all of these things. One small tip: meet them in person before you sign, or at least on a video call, and re-ask about the documents they gave you. At Team Asgarian, renting out and managing our clients' homes is part of what we do. If you'd like a straight answer for your own situation, fill out the form below and book a free consultation. Stay well and take care.