What I need to know before my first rental property

Tenant Requirements for Renting in Toronto

Complete 9 STEP Guide

🏢 Tenant Requirements for Renting in Toronto

This guide outlines everything a prospective tenant must provide and complete when applying to rent a property in Toronto, Ontario, in accordance with common industry practice and the Residential Tenancies Act.

1. Rental Application Submission

All tenants must complete a rental application form, which includes:

  • Full legal name and date of birth

  • Current and previous addresses

  • Employment and income details

  • Personal and landlord references

  • Consent for a credit check

👉 Incomplete applications are typically not considered.

2. Required Supporting Documents

To verify identity, financial stability, and rental reliability, tenants must provide:

📄 Government-Issued Identification

  • Valid photo ID (e.g., driver’s license or passport)

💳 Credit Report

  • Full report from Equifax or TransUnion

  • Must show:

    • Credit score

    • Payment history

    • Outstanding liabilities

👉 Strong applications typically have a credit score of 650+

💼 Employment & Income Verification

  • Employment letter (company letterhead) confirming:

    • Position

    • Salary

    • Length of employment

    • Status (full-time, permanent, etc.)

  • Two (2) most recent pay stubs

👉 If self-employed:

  • 2 years of Notices of Assessment (NOAs)

  • Recent bank statements

🏠 Rental History & References

  • Previous landlord contact information

  • Reference letters (if available)

🏦 Additional Financial Verification (if requested)

  • Bank statements

  • Proof of savings or assets

  • Guarantor/co-signer (if required)

3. Additional Requirements for New Canadians / Non-Permanent Residents

For applicants who are new to Canada or do not have permanent residency, additional documentation is commonly required to verify legal status and eligibility to reside and work in Canada.

🌎 Immigration / Residency Documentation

Tenants may be required to provide one or more of the following:

  • Permanent Resident (PR) Card

  • Work Permit

  • Study Permit (if applicable)

  • International Mobility Program (IMP) documentation

  • Post-Graduation Work Permit (PGWP)

  • International Experience Canada (IEC) permit

  • Bridging Open Work Permit (BOWP)

👉 These documents confirm:

  • Legal right to live in Canada

  • Validity period of stay

  • Employment authorization

🪪 Additional Identification Requirement

  • A copy of a valid driver’s license is often required for applicants without permanent resident status as an additional form of ID and verification.

⚠️ Important Note:

Newcomers without Canadian credit history may also be asked for:

  • Larger upfront rent (within legal limits)

  • A guarantor

  • Additional proof of savings

4. Offer & Acceptance

If approved:

  • Tenant proceeds to lease signing

  • In competitive markets, this step may occur quickly

5. Lease Agreement Signing

Tenants must sign the Ontario Standard Lease Agreement, which outlines:

  • Rent amount

  • Lease duration (typically 12 months)

  • Rules and obligations

  • Included utilities

6. Rent Payments Upon Signing

Immediately after signing the lease, tenants must pay:

💰 Required Deposit:

  • First Month’s Rent

  • Last Month’s Rent

👉 Example:

  • Monthly rent: $2,450

  • Total due: $4,900

📌 Under the Residential Tenancies Act:

  • Last month’s rent is held and applied at the end of tenancy

  • Additional security deposits are not permitted

7. Tenant Insurance (Mandatory Requirement)

Before keys are released, tenants must:

🛡️ Obtain Tenant Insurance

Coverage typically includes:

  • Personal belongings

  • Liability coverage

  • Temporary living expenses

📄 Provide Proof of Insurance

  • Certificate showing:

    • Tenant’s name

    • Rental address

    • Active policy dates

👉 No proof = no keys in most cases.

8. Pre-Move-In Requirements

Before occupancy, tenants must:

  • Pay all required funds

  • Provide insurance documentation

  • Set up utilities (if applicable):

    • Hydro

    • Gas

    • Internet

  • Book move-in (for condos)

9. Additional Common Requirements

✅ Guarantor / Co-Signer

Required if:

  • Limited income

  • No credit history

✅ Post-Dated Cheques or Pre-Authorized Payments

  • Often requested but not legally required

✅ Key Deposit

  • Refundable

  • Must be reasonable (replacement cost only)

✅ Condo Move-In Fees

  • Elevator booking

  • Refundable damage deposits

✅ Utility Account Setup

  • Transfer or activation may be required before move-in

✅ Pet & Smoking Disclosure

  • Tenants may be asked to disclose pets

  • Non-smoking agreements are common

🧾 Final Tenant Checklist

✔️ Application Stage:

  • Application form

  • ID

  • Credit report

  • Employment letter

  • 2 pay stubs

  • References

✔️ Additional (if applicable):

  • Immigration / permit documents

  • Driver’s license (non-PR applicants)

  • Guarantor

✔️ After Approval:

  • Signed lease

  • First & last month’s rent

✔️ Before Keys:

  • Tenant insurance (proof)

  • Utilities set up

  • Key deposit (if applicable)