Complete Guide to Renting Out Your First Property

Before You List: The Preparation Phase

Most new landlords rush to list their property. Don't. The preparation phase is where you set yourself up for success or failure.

Get Your Insurance Right

Standard homeowner's insurance does not cover rental properties. You need a landlord insurance policy that covers:

• Property damage (fire, water, storm)
• Liability (if a tenant or visitor is injured on the property)
• Loss of rental income (if the property becomes uninhabitable)
• Legal costs related to tenant disputes

Shop around. Premiums vary significantly between providers. Expect to pay 15% to 25% more than standard homeowner's insurance.

Also, require your tenants to get tenant insurance. You can include this as a term in the Ontario Standard Lease. Tenant insurance protects their belongings and provides liability coverage, which protects you too.

Understand Your Financial Picture

Before you set a rent price, know your numbers:

1. Mortgage payment (principal + interest)
2. Property taxes
3. Insurance
4. Utilities (if you're covering them)
5. Maintenance reserve (1% to 2% of property value annually)
6. Vacancy allowance (budget for 1 month vacant per year)
7. Property management costs (if applicable)

Add these up. That's your minimum rent to break even. Your actual rent should be based on market rates, but knowing your break-even number helps you assess whether the investment makes sense.

Setting the Right Price

Pricing is both art and science. Here's the science part:

Market Research Methods

• Comparable listings: Check 10 to 15 similar units in your area on Kijiji, Facebook Marketplace, and Rentals.ca
• Recently rented: Look at listings that have been taken down recently. They likely rented at or near the listed price.
• CMHC Rental Market Report: Published annually with average rents by city and unit type
• Talk to local property managers: They know what units are renting for in your neighbourhood

Factors That Affect Rent

• Location: Proximity to transit, schools, shopping, downtown
• Unit size: Number of bedrooms and bathrooms
• Condition: Renovated units command 10% to 20% premiums
• Included amenities: Parking, laundry, storage, utilities
• Building amenities: Gym, pool, concierge (for condos)
• Season: May to September typically sees higher demand

Price slightly below market for your first rental. The goal is to attract a great tenant quickly, not to squeeze every last dollar. A good tenant who pays reliably and stays for years is worth more than an extra $50/month from someone who causes problems.

Creating an Effective Listing

Your listing is your first impression. Make it count.

Photos

1. Clean and declutter every room
2. Shoot during the day with natural light
3. Use wide-angle shots to show the full room
4. Include exterior photos
5. Aim for 15 to 20 photos minimum
6. Show the neighbourhood highlights (park, transit stop, amenities nearby)

Listing Description

Include all the basics:

• Rent amount and what's included
• Number of bedrooms and bathrooms
• Square footage (if known)
• Available date
• Lease term
• Parking availability
• Laundry (in-unit, in-building, or none)
• Nearby transit and amenities
• How to apply

Be honest. Don't oversell. Tenants who show up to a unit that doesn't match the listing are already disappointed before they even consider applying.

Screening Tenants Effectively

This is the most important skill you'll develop as a landlord. Your screening process should be consistent and thorough.

The Application Process

1. Pre-screen by phone or email: Ask about move-in date, number of occupants, reason for moving, and income
2. Show the unit to qualified candidates
3. Collect a written application from serious applicants
4. Run a credit check (with written consent)
5. Verify employment: Call the employer directly
6. Check references: Call previous landlords (ideally the one before the current one, since the current landlord may give a good reference just to get rid of a bad tenant)

Red Flags to Watch For

• Reluctance to provide references or consent to a credit check
• Wanting to move in immediately with no explanation
• Offering to pay several months upfront (this can indicate unstable income)
• Bad-mouthing every previous landlord
• Income that doesn't support the rent (general guideline: rent should be 30% to 35% of gross income)

What You Can't Ask

The Ontario Human Rights Code prohibits discrimination. You cannot ask about or make decisions based on:

• Race, ethnicity, or place of origin
• Religion
• Gender identity or sexual orientation
• Family status (including whether they have children)
• Disability
• Age
• Source of income (you can verify they can afford the rent, but you can't reject someone solely because they receive social assistance)

The Lease and Move-In

Use the Ontario Standard Lease (Form 2229E). It's mandatory. Fill it out completely and review the additional terms section carefully.

Move-In Day Essentials

1. Walk through the unit together and complete an inspection checklist
2. Photograph everything, every room, every surface
3. Show the tenant how to operate the heating/cooling system
4. Point out the water shut-off valve, breaker panel, and furnace filter
5. Provide emergency contact information
6. Explain your process for maintenance requests
7. Hand over all keys and document the quantity

Managing Your First Tenant

The relationship you build with your first tenant sets the tone for your entire landlord career.

Communication

• Be responsive. Aim to acknowledge maintenance requests within 24 hours.
• Keep communication professional but friendly
• Document important conversations in writing (email or text)
• Be clear about expectations from both sides

Rent Collection

Set up a reliable rent collection system from day one:

• E-transfer is the most common method in Ontario
• Pre-authorized debit is convenient but requires tenant consent
• Post-dated cheques: You can accept them but cannot require them under the RTA

Track every payment with dates and amounts. BricksAbove automates rent tracking and sends reminders, so you always know where you stand financially.

Maintenance

Respond to maintenance requests promptly. Small issues left unaddressed become expensive problems. Build a network of reliable contractors: a plumber, electrician, HVAC tech, and general handyperson.

Tools for New Landlords

Managing a rental property involves a lot of moving parts. Even with one unit, you're tracking rent payments, maintenance requests, documents, expenses, and tenant communications.

A purpose-built property management tool makes everything easier. BricksAbove was designed specifically for Ontario landlords. It handles:

• Rent tracking and payment reminders
• Maintenance request management
• Document storage (leases, inspection reports, receipts)
• Financial tracking for tax time
• Tenant communication logs

Starting organized is much easier than trying to organize later. Check out our pricing and sign up to build your landlord system the right way from the beginning.

Before committing to a purchase, run the numbers with our free mortgage calculator to understand your monthly payment obligations. Then use the cash flow calculator to see whether the rental income will cover your costs and leave room for profit.

Your First Year: What to Expect

The first year is a learning curve. You'll deal with things you didn't expect. A maintenance call on a holiday weekend. A late rent payment. Questions you're not sure how to answer.

That's normal. Every experienced landlord went through it. The key is to stay organized, respond promptly, know your legal obligations, and keep learning. Within a year, most of this will feel like second nature.