.png)
Residential Rental Licensing in Ontario
Yashkaran Singh
August 29, 2024
.png)
Ontario Landlords! Are you ready to rent out your property? Here’s what you need to know first.
As a landlord in Ontario, you’re probably eager to start earning rental income, but before you hand over the keys, there’s one crucial question you need to ask: “Do I need a license to rent out my property?”
While many landlords assume they don’t need one, the reality is that some municipalities in Ontario require a rental license in specific situations, and failing to comply could lead to costly fines and penalties.
This blog will discuss some Municipalities that have these requirements and what steps you can take to stay on the right side of the law.
• City of Toronto
Effective March 31, 2024, all multi-tenant house operators in the City of Toronto require a license. According to the requirements, a multi-tenant house is a building with four or more rooms, inhabited or intended to be inhabited by people who do not live together as a single housekeeping unit.
Under the new rules, all operators need a license and are required to develop property maintenance plans, including processes for tenant service requests, pest management and waste management and collection.
For more information, please visit the following link: Multi-Tenant House Owners & Operators – City of Toronto
• City of Oshawa
In the City of Oshawa, residential rental properties located around Durham College and Ontario Tech University must have a license. This requirement does not apply to a Rental Unit that is occupied by at least one owner of the Rental Unit as their sole residence and in which no more than two (2) Bedrooms are occupied by Tenants.
For more information, please visit the following link: Residential Rental Housing - City of Oshawa
Below is a map showing the areas where a license is required:
• City of Brampton
On January 1, 2024, the City of Brampton initially launched its Residential Rental Licensing (RLL) Pilot Program. However, the launch faced significant pushback and protests from residents. In response to this feedback, the city made some changes and relaunched the program on March 28, 2024.
The program has been launched for an initial 2-year period, during which it will be evaluated. According to the requirements, a license is needed for the following:
For more information, please visit the following link: City of Brampton | Residential Rental Licensing Pilot Relaunch | Residential Rental Licensing Pilot Relaunch
Below is a map showing the areas where a license is required:
In addition to the above, other municipalities that have such requirements in place are the City of Toronto, City of London, City of Waterloo, etc.
Now that we understand a license may be required to lease a residential property, how can you ensure compliance, especially when purchasing a new property?
Here are some best practices that Buyers or their Real Estate Agents can follow to avoid violations:
As mentioned above, failure to comply with residential rental licensing requirements can lead to fines and penalties imposed by the Municipality. Therefore, it's essential to ensure you are not in violation of these regulations. We're here to help! If you have any questions or concerns about the topics discussed in this blog or need assistance with real estate transactions, please don't hesitate to contact our office at (905) 270-6660 or via email at info@kormans.ca.
Yash’s practice focuses primarily on residential and commercial real estate transactions, and real estate financing. Prior to joining Kormans, Yash articled at a boutique law firm in Mississauga where he started his journey in real estate law. Yash completed his Master of Laws from the University of Montreal and was called to the bar of Ontario in 2022.
Yash is deeply passionate about helping his clients navigate the often intricate complexities of the law. He loves new challenges and formulating creative solutions to help his clients achieve their goals. Yash is committed to providing his clients with exceptional service and helping them achieve the best possible outcomes.
Outside of work, Yash enjoys travelling, exploring nature, and listening to music. He is a former field hockey player, wherein he honed his strategic thinking and analytical skills to navigate through the challenges of the game, much like he does now in his law practice.
With a keen eye towards the future, Yash endeavors to expand his legal expertise and make a positive impact on his clients and the legal profession. He is committed to staying up-to-date with the latest developments in his areas of practice and providing his clients with the best possible legal advice and representation.
Good news for first-time home buyers! On May 27, 2025, legislative proposals were introduced in the Parliament to amend the Excise Tax Act by creating a new GST rebate specifically for first-time home buyers.
Purchasing a condominium in Ontario demands more than selecting the right unit! One of the most important aspects of this transaction is a thorough review of the status certificate.
As part of a commercial real estate sale transaction, our office often gets retained during the early part of the transaction in order to review the Agreement of Purchase and Sale (the “APS”).
.webp)
