Renting in Canada: The Ultimate Guide for 2025

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 local markets 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 requirements to the most popular options for finding your new home.

Stick around to learn about:

• Required documents
• Step-by-step renting process
• Average costs of rent

Why should you start renting in Canada?

The property 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 renting 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.

Required Documents 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 previous landlords)
• Credit report (i.e., credit score, payment history, or outstanding debts)

How to Start Renting in Canada: Step-by-Step Process

Renting in Canada for immigrants can be daunting, but with some market research, efficient planning, and expert assistance, you can find available rental units that suit your goals and budget. Here is a quick overview of the rental process.

Research the Canadian market

Assess your financial situation to decide which location would be more affordable to rent. In addition to the monthly rent, consider the parking fees, utilities, heating, telecommunication services, snow removal, and lawn maintenance. Affordable options are available in most provinces, usually in rural areas, smaller towns, or outside city centers.

Find a property in Canada

Browse property websites and choose a house, apartment, or condo closer to your work, school, public transit, or any other amenities you prefer. Consider the overall vibe of the neighborhood.

Collect necessary documents

Many landlords in Canada will often ask for specific documents to review and verify your reliability as a tenant. You must provide personal identification, bank statements, references, rental history, credit history, employment history, and other supporting documents.

Sign a lease

When you agree to rent a property, your landlord will provide a rental agreement for you to sign. This legal document outlines the month’s rent, rental period, maintenance responsibilities, and payment due dates. It’s best to review the lease agreements before signing them.

Issue payment

Most tenants issue a payment on the first day of every month. You must pay rent based on the terms and agreements specified in your rental agreement. Your lease agreements can include options to be paid in cash, cheque, or by e-transfer.

Cost of Renting in Canada

The most expensive city to live in Canada is Vancouver (British Columbia), followed by Toronto (Ontario), where the cost of living is about 45 percent higher than the national average. Both cities are known for high rent costs, utilities, and groceries. Below is an estimate of the rental fees by province and region.

Source: Numbeo

Average rent in Canada vs US

Buying property in Canada comes at a steep price, but average rent costs are very similar to those in the United States, especially in major cities. The average rent in Vancouver for a one-bedroom apartment can cost between US$ 1,621 and US$ 1,991, whereas the monthly rent in New York City can vary from US$ 2,681 to US$ 4,110.

Overall, the US is more expensive than Canada, but the housing and rent costs greatly vary between regions. Rent increases with inflation based on market trends. Some Canadian provinces, like Manitoba, Nova Scotia, and Alberta, provide more affordable options for housing, short-term rentals, and living costs.

Best Places to Start Renting in Canada as an American

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.

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 property at higher average costs. However, those who earn high salaries can live comfortably in Toronto despite the rising month’s 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 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.

What is the 30% rule for rent in Canada?

The 30 percent rule is a general guideline for financial planning that 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. You can comfortably go above 30 percent if your expenses are lower.

How much is the average rent in Canada?

The average rent in Canada per month varies between cities and provinces. For example, a one-bedroom apartment in Toronto’s city center is C$ 2,468, whereas in Winnipeg, you can expect to pay C$ 1,289. Rural areas offer the most affordable prices, but major cities provide ample job opportunities.

How does renting in Canada work?

Renting in Canada begins with finding rental units and applying for a legal status to live in Canada, such as a work visa, permanent residency, or student visa. The landlord will verify your income and ask for additional documentation, like a credit check. Upon verification, you’ll sign lease agreements, pay a security deposit and first month’s rent, then get ready to move in.

What are the requirements for renting in Canada?

Foreign renters must have a legal status permitting them to live in Canada for a short or long-term stay. In general, your rent expenses shouldn’t exceed 35 percent of your gross household income. You also need a valid student visa, permanent resident status, or a work visa. Some foreign nationals may require electronic travel authorization (eTA) depending on their home country.

What affects the month's rent for a rental property in Canada?

The month’s rent for a rental property in Canada varies based on location, size, and demand. Urban areas cost more, especially during summer months when due to high demand. Landlords also collect rent based on amenities, property condition, and nearby services. Local regulations across Canada vary as well.

Is renting in Canada difficult for newcomers?

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 you need tenant insurance to rent an apartment in Canada?

You don’t need tenant insurance to get a rental property in Canada as a renter. However, it can be beneficial since the tenant insurance covers your belongings against fire, theft, and other common risks.

How to avoid scams when signing lease agreements?

Avoiding scams during the rental process 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.