Editor's note, October 6, 2026: this article was reviewed and rewritten in our accuracy check. An earlier version contained neighbourhood rent levels and a statement that first month's rent can't be collected, which is wrong; they have been removed or replaced with figures from the sources listed at the end of the article.
Renting your first place in Toronto is mostly about preparation: knowing what you can afford, having your documents ready, and knowing your rights before you hand over money. Here is the process step by step.
Step 1: Set your budget
Many landlords compare rent with your income, so work out what you can pay comfortably, including hydro, tenant insurance and internet if they aren't included. Market conditions have eased: CMHC's 2025 Rental Market Report found Toronto's purpose-built rental vacancy rate rose to 3.0%, and rents on newly leased two-bedroom units fell. That gives renters more choice and some room to negotiate, but asking rents vary widely by neighbourhood and building, so compare current listings for the exact area you want.
Step 2: Search, and look in person
Never pay anything for a unit you or someone you trust hasn't seen in person, and confirm the person showing it has the right to rent it out (for a condo, ask for proof of ownership or the owner's authorization).
Step 3: Prepare your application
Landlords may ask for income information, a credit check and references. They may not refuse you because of a ground protected by Ontario's Human Rights Code, such as race, religion, family status or receipt of public assistance. Have ready: photo ID, proof of income (employment letter or pay stubs), references, and a credit report if you have one.
Step 4: Deposits, the legal ones
- First month's rent is simply rent paid in advance, and a landlord can ask for it.
- A rent deposit of no more than one month's rent can be required, and must be used for the last month of the tenancy. Your landlord must pay you interest on it every year at the rent guideline rate (2.1% for 2026).
- A key deposit is allowed only if it is refundable when you return the key.
- Damage or security deposits are not allowed in Ontario.
Step 5: Sign the Ontario Standard Lease
Most residential tenancies must use the Ontario Standard Lease. If you didn't get one, ask your landlord in writing; if they don't provide it within 21 days, you may withhold one month's rent (and keep it if you still don't receive the lease 30 days after withholding). Read the sections on what's included (utilities, parking, storage) and any additional terms; a term that conflicts with the Residential Tenancies Act is void.
Step 6: Move in and document
Photograph or video each room on move-in day, note any damage in writing to your landlord, and keep copies. Arrange tenant insurance (your lease may require liability coverage), set up hydro and internet, and save your landlord's legal name and address for notices.
Know your rights
- Your landlord must give 24 hours' written notice to enter, between 8 a.m. to 8 p.m., except in an emergency.
- Rent can rise once every 12 months with 90 days' written notice. For most units the increase is capped by the guideline: 2.1% for 2026 and 1.9% for 2027. Units first occupied after November 15, 2018 are exempt from the cap.
- You can't be evicted without an order from the Landlord and Tenant Board.
Scam warning signs
- A rent well below similar units nearby.
- A "landlord" who is abroad and can't show the unit.
- Pressure to pay a deposit by e-transfer or gift card before viewing or signing.
- No lease, or a lease that isn't the Ontario Standard Lease.
Browse rentals on Summitly, read our tenant rights guide, or ask Zara, Summitly's AI virtual agent.
