Renting in Canada: A Guide to Finding a Home for Newcomers

Renting in Canada as a foreigner provides a captivating blend of vibrant coastlines, snowy mountains, and investment potential. Canada’s vast landscape, high quality of life, and standard of living make it a popular destination.

However, immigration law and the rental market can be challenging to navigate, especially since every province and territory has its own rules for rental application forms. This article provides detailed guidelines for renting property in Canada, from the costs, requirements, and documentation, to the most popular options for finding your new home.

Stick around to learn about:

• Can you start renting in Canada as an American?
• How much is the average rent in Canada?
• What are the costs for renting a house in Canada?
• What documents are needed to rent in Canada?
• Different Types of Properties in Canada for Rent
• Tenant and Landlord Rights in Canada
• Best Cities for Renting in Canada for Immigrants

Why should you start renting in Canada?

The rental market has transformed, and renting in Canada offers diverse options for foreigners. Lower upfront costs, coupled with a high quality of life and favorable immigration policies, continue to attract international tenants and investors. Winnipeg, the capital of Manitoba province, is a hotspot, with more foreign nationals renting property.

Lower upfront costs

Renting in Canada is significantly cheaper than owning a house, especially in Toronto, Ontario. Home ownership demands a substantial down payment, whereas renting requires a security deposit. Tenants can avoid expensive legal fees and land transfer taxes. This makes renting units more accessible for expats with limited savings and lower income, such as students and newcomers.

No maintenance or repair costs

One of the most significant advantages of rental units is financial predictability. The landlord often handles the property upkeep, from pipe leaks to electricity problems and necessary repairs. If there is an issue with the rental property, you just notify the landlord, which saves you time and money.

High quality of life

According to the Global Residency and Citizenship by Investment Report by Global Citizen Solutions, Canada takes the top spot among the most sought-after countries for its exceptional quality of life. People enjoy world-class healthcare, stable communities, and a stunning natural landscape. Canada is a safe country to live in due to its low crime rates and strict laws.

Diverse property options

Canada’s rental market offers various housing choices and apartment buildings to suit every budget. Toronto, for example, is popular among career-focused individuals, while Winnipeg is a great choice for students and newcomers looking for more affordable apartment or house renting in Canada.

Expat-friendly

Canada has favorable immigration policies and is very welcoming toward immigrants. The high interest rate means landlords and property managers are familiar with international tenants and can accommodate various needs.

Can you start renting in Canada as an American?

Yes, a citizen of the United States can rent property in Canada. But your ability to rent depends on your legal status. If you are visiting Canada on a tourist visa, you can only rent short-term accommodations, like vacation rentals or Airbnb. To rent long-term, you need a valid work visa, permanent resident (PR) status, or a student permit.

The landlord may require additional documentation to verify your rental history, such as bank statements or Canadian credit history. You might also need a guarantor – someone who promises to cover the rent if you are unable to pay. In most cases, this person is a Canadian permanent resident or citizen.

How much is the average rent in Canada?

Rental prices in Canada fluctuate based on the location, property, and housing demand. Larger cities, such as Vancouver and Toronto, come with a higher price tag, where a one-bedroom apartment often costs more than $2,500 per month. Meanwhile, you’ll likely pay less in cities like Montreal or Quebec City, where similar units may cost under $2,000.

Source: Numbeo

Average rent in Canada vs US

Buying property in Canada comes at a steep price. Housing prices in major Canadian cities like Vancouver and Toronto are notoriously high and have been for many years. Canadian property is, on average, more expensive than in the United States, with some reports suggesting it can be 19 to 40 percent higher.

While some Canadian cities have high rents similar to certain US cities, the overall average rent across the entire country for Canada might be slightly lower than that in the US. For example, Winnipeg’s monthly rent varies from CAD $1,305 to over CAD $1,379. The average rent in Vancouver for a one-bedroom apartment can cost well over CAD $2,500, whereas the monthly rent in New York City is over USD $4,000 in the city center and USD $2,500 outside the center.

What are the costs for renting a house in Canada?

The average cost to rent a house in Canada ranges from $2,500 to $3,500 per month, depending on location, size, and amenities. Cities like Toronto and Vancouver are the most expensive, while smaller towns in provinces like Manitoba or New Brunswick are more affordable for a new home.

Source: Numbeo

What other costs to consider?

As a tenant, you need to account for additional costs such as utilities (electricity, water, gas), internet, transportation fees, tenant insurance, and other expenses. They come on top of the monthly rent and require some budgeting. Some renters may pay for a security deposit or moving fees. Here are the average expenses in Toronto, Ontario.

What documents are needed to rent in Canada?

You will need the following documents to start renting in Canada as a foreign national:

• A valid passport
• Job letter (or employment verification letter)
• A valid visa or an electronic travel authorization (eTA)
• Proof of income
• Personal reference (from employers or past landlord)
• Credit report (i.e., credit check, payment history, or outstanding debts)

Different Types of Properties in Canada for Rent

In Canada, you’ll find all kinds of places to rent—something for every budget and lifestyle.

Apartment

Apartments are the most common rental units. They can be small studio units (just one room) or larger spaces with multiple bedrooms. They’re usually in low-rise or high-rise buildings and often come with shared perks like a laundry room or gym, offering a smooth transition for immigrants.

Condo

Condos are similar to apartments but are owned by individuals. As a renter, you’ll still get access to extras like a pool or concierge, which are usually included in the rent. They are a key component of the rental market, attracting many foreigners from the US, UK, India, and other countries.

House, Townhouse, Duplex, or Triplex

If you need more room, you can rent a house, townhouse, or a unit in a duplex or triplex. A house gives you the most privacy, while townhouses and semi-detached homes share walls with neighbors. Duplexes and triplexes are split into two or three separate homes. The rental market is more competitive for this type of rental property, so expect them to come with a higher security deposit based on the provincial law.

Room or basement suite

For a more affordable option, it’s possible to rent a room in someone’s house or a basement suite. Many landlords offer this type of rental property to students or tenants trying to save money as rent increases due to inflation.

Tenant and Landlord Rights in Canada

In Canada, rental rules are set by each province or territory, not the federal government, so things can vary depending on where you live. Still, some basic rights and responsibilities apply pretty much everywhere.

What tenants can expect:

• A safe place to live: Your landlord has to keep your home in good condition and meet health and safety standards.
• Privacy: Many landlords are giving proper notice of about 24 hours’ before coming into your place—unless there’s an emergency.
• Fair treatment: They can’t refuse to rent to you or treat you unfairly because of things like your race, religion, or family situation.
• No surprise evictions: Landlords must have a valid reason to evict you and have to follow the proper legal steps based on the signed rental agreement.

What landlords can expect:

• Rent on time: Landlords have the right to collect rent when it’s due.
• Keep things in order: They’re responsible for repairs, pest control, and taking care of shared spaces.
• Set reasonable rules: Landlords can notify you when rent increases and make house rules, as long as they don’t break your rights or invade your personal privacy.
• Evict when necessary: If a tenant doesn’t pay rent, damages the place, or causes serious problems, landlords can take steps to evict them legally.

If problems come up, every province has a special board or service (like the Landlord and Tenant Board in Ontario) to help sort things out. Knowing your local rules is key for both renters and many landlords before signing rental agreements.

Best Cities for Renting in Canada for Immigrants

Cities like Montreal, Quebec City, Windsor, and Toronto are some of the best places to rent as an American. For example, Windsor is the closest city to the border with the United States, offering diverse economic opportunities.

Bilingual American renters often choose Montreal or Quebec City due to their unique blend of European and North American cultures. Many renters find these cities to be the perfect places to find work and raise a family due to their proximity to grocery stores and community centres.

Toronto is a go-to choice for Americans looking to invest and start a business. While Canada doesn’t offer a direct citizenship by investment, it has lucrative residency programs, like the Start-up Visa. Most landlords offer rental properties at higher average costs. However, those who earn high salaries can live comfortably in Toronto despite the rising monthly rent.

Professional property management companies offer a wide range of services to property owners, investors, and landlords. They can help with rent collection, financial reporting, and budget management.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Asked Questions About Renting in Canada

Can a US citizen rent in Canada?

Yes, a citizen of the United States can rent property in Canada, given their legal status permits them to enter or visit the country. For long-term renting, you need a valid work visa, permanent residency, or a student permit. The visitor visa in Canada only allows for temporary renting.

How much is rent in Canada per month?

The average rent in Canada for 1-bedroom apartment is about $2,200 in a major city. Rent varies by location, with cities like Toronto and Vancouver exceeding $2,500, while smaller towns may range from $1,200 to $1,800 per month.

How much is rent in Canada for students?

Student rent in Canada can cost from $600 $1,500 per month, depending on location and housing type. Shared apartments and university residences are cheaper, often costing $600 to $1,000, while private rentals near campuses can range from $1,200 to $1,500 monthly.

How to sign a rental application in Canada?

To sign a rental agreement for a new home, you’ll need a valid ID, proof of income, and a credit report. A real estate agent can help navigate the process. After approval and signing, you’ll pay deposits and may need tenant insurance. Always ensure the property is legitimate before you send money.

How does renting in Canada work?

Many Americans moving to Canada find it difficult to rent a place, especially in major cities like Toronto or Vancouver, due to high demand for housing and limited supply. It is often easier to find a rental property in more affordable rental unit locations, such as Winnipeg and Edmonton.

Do Americans need a Canadian credit history to rent in Canada?

No, American citizens don’t need a Canadian credit history to rent in Canada. But, the landlord can ask for an alternative proof, like an income statement, US credit reports, or a guarantor. This way, the landlord can make sure they have the funds to cover your investment.

What is the rental process like for immigrants in Canada?

Every immigrant needs a visa to rent and live in Canada. If you are doing it for the long haul, it is best to opt for a permanent residency, work visa, or a student visa. But, if you only have a visitor or tourist visa, you are allowed to rent the property while you are still in the United States.

How much of your salary should go to rent in Canada?

It is different for all families, but generally, you can use the 30 percent rule. This rule suggests the rent you pay doesn’t exceed 30 percent of your monthly income. It is designed for renters with various expenses, such as multiple car loans, high travel costs, etc. But this rule doesn’t fit everyone.

Do you have to pay tax on rent in Canada?

No, tenants in Canada do not pay taxes on rent directly. Property taxes are the landlord’s responsibility, but landlords often include these costs in the rent. So, while tenants don’t pay tax separately, their rent may cover the landlord’s property tax expenses indirectly.

What are the requirements for renting in Canada?

To rent in Canada, you need a valid ID, proof of income, and a good credit history. Landlords may also ask for references and a security deposit. Some may require a guarantor if you have no Canadian credit or rental history. Rental rules can vary by province.

How to avoid scams when signing lease agreements?

Avoiding scams with lease agreements starts with spotting the red flags. Pay attention to excessive late fees, vague maintenance and repair responsibilities, or clauses that allow the landlord to unilaterally change the terms. The rental property shouldn’t have any hidden costs.