Investment properties

• A condo to rent out: check the condo's rules on leasing, and the monthly fees.
• A house with extra units: Ontario's planning rules allow up to three residential units on many urban residential lots with full municipal water and sewer services, for example a basement apartment and a garden or laneway suite. Whether a particular property qualifies depends on the property, the applicable planning rules, servicing, permits and Building Code requirements.
• A small multi-unit building: such as a duplex, triplex or fourplex.
• Pre-construction: buying before the building is finished. Read how pre-construction works.

Ontario's Residential Tenancies Act applies to most rental homes, with rules on the lease, deposits, rent increases and entry. Read more for landlords.

Certain newer buildings, additions and qualifying new units in existing houses may be exempt from the yearly rent increase guideline under section 6.1 of the Residential Tenancies Act. The exemption depends on the statutory criteria and residential occupancy history, not simply when the current tenant moved in or when the unit was renovated. Confirm the property's status.

Selling a property with tenants in it does not, by itself, end the tenancy: the tenancy continues with the new owner. Lawful termination may still be available where the Residential Tenancies Act's requirements are met.

For a rental property with 2 to 4 units that you won't live in, CMHC's Income Property mortgage insurance program requires a minimum of 20% equity. Lender requirements, and how much of the expected rental income a lender counts when you qualify, vary.

Talk to your lender or mortgage professional about the options for your situation.

• Zoning, and how many units are allowed
• The current tenants, leases and rents
• The building's condition, inspections and any work needed
• Operating costs: property tax, insurance, utilities, maintenance and condo fees
• Financing, with your lender or mortgage professional
• Tax, with your accountant: rental income and a future sale both have tax rules
• The agreements and title, reviewed by your real estate lawyer

This page is general information, not legal, tax or financial advice. It makes no promises about rents, returns or future value.