Five Hot Tips For New Landlords in Ontario

Real estate is a proven investment strategy, especially in Ontario’s booming market. However, becoming a landlord is not without its challenges. While securing a property is the first big step, managing it profitably is where the real work begins. For new landlords, it can feel overwhelming at times—but with the right strategies, you can set yourself up for success.

Here are five hot tips for new landlords in Ontario that not many realtors are willing to discuss—but you need to know to stay ahead.

1) Pricing Right: Don’t Just Follow the Crowd

Setting the right rental price is one of the most crucial aspects of being a landlord, but it’s also where many make costly mistakes. It’s tempting to charge as much as possible to maximize your return, but overpriced units will stay vacant for longer, costing you far more than slightly lower rent would. Conversely, charging too little can attract tenants who may not respect or maintain the property.

How to Price Smartly:

• Go beyond local comps: While it’s important to know the average rent for similar properties in the area, you also need to consider the current demand. Use platforms like Kijiji, Facebook Marketplace, and Zillow to see what renters are actively looking for in real-time.
• Offer lease flexibility: Consider staggered rent based on lease lengths. For example, offering a slight discount for a long-term lease can provide you with tenant stability, ensuring fewer vacancies over time.

2) Screening Tenants: Beyond the Basics

Tenant screening is one of the most critical steps in protecting your investment. Many landlords check credit scores, income, and references, but you can—and should—go further to avoid future headaches.

Go Deeper with Tenant Screening:

• Personal statement: Ask for a personal statement from potential tenants. In this document, tenants should explain why they are interested in your property and share some personal background. This helps gauge their level of seriousness and responsibility.
• Social media check: Take a quick look at their social media profiles (Facebook, LinkedIn, Instagram). Does their lifestyle match what they’ve presented to you? While this isn’t a foolproof method, it can provide valuable insights into their reliability.
• Check behaviour and personality: Consider conducting a brief interview with potential tenants. Tenants who are respectful and professional during this process tend to reflect that in their behavior as renters.

3) Setting Rules: Be Clear from the Start

Your rental property is an investment, and protecting it should be a priority. Setting clear and consistent rules not only protects your property but also sets expectations with your tenants early on. Don’t fall into the trap of being a “lenient” landlord—establishing firm rules and boundaries is key to long-term success.

Why You Need to Set Rules Early:

• Start firm, stay firm: If you let small rule violations slide early on, you risk setting a precedent that will be harder to enforce later. Make it clear upfront that rules around maintenance, noise, and other factors will be strictly enforced.
• Cover everything: From pets to smoking, make sure your lease agreement includes specific clauses about behavior, property maintenance, and other conditions important to you.

4) Build a Reliable Network

Being a landlord doesn’t mean you need to handle everything yourself. One of the best hot tips for new landlords in Ontario is to build a reliable network of contractors and professionals who can help maintain your property. Having a trusted team means you’ll be ready to tackle any issue quickly and efficiently.

How to Build a Strong Network:

• Vet your contractors: Don’t just hire the cheapest plumber, electrician, or handyman. Spend time researching professionals with strong reputations. Read reviews, ask for referrals, and test them with smaller tasks before entrusting them with larger repairs.
• Create strong relationships: If you find someone reliable, treat them well and pay them promptly. A solid relationship with your service providers will help you prioritize your property’s needs during emergencies.

5) Property Management: Know When to Hand Over the Reins

Managing a rental property requires significant time, energy, and expertise—far more than many new landlords realize. While you might think you can save money by managing the property yourself, it’s important to evaluate whether you have the bandwidth to handle the day-to-day operations.

Why Property Managers Can Be a Smart Investment:

• Free up your time: Hiring a property manager means you don’t have to be on call 24/7 for repairs or tenant issues. They handle everything from tenant disputes to maintenance requests, allowing you to focus on growing your portfolio.
• Expertise matters: Property managers know how to screen tenants, manage maintenance issues, and handle potential evictions, saving you the stress and ensuring your property remains profitable.

Bonus Tip: Stay on Top of Legal Changes

Here’s something landlords rarely talk about—Ontario’s landlord-tenant laws are not always landlord-friendly. Being caught off guard by changing legislation can land you in legal trouble or cause unnecessary delays with tenant evictions. Familiarize yourself with Ontario’s Residential Tenancies Act and always document every communication with your tenants.

• Keep all agreements in writing: Even minor promises made to tenants should be documented. This will protect you if disputes arise later.
• Evictions can be tricky: In Ontario, evictions can take several months, especially if not handled correctly. If you’re not well-versed in the law, consider hiring a lawyer or property manager to assist.

For more resources and tools on managing your rental property, visit OpenRoom, a platform that provides valuable insights and solutions for landlords across Ontario.

Closing Thoughts: Plan for Success as a New Landlord

Being a successful landlord in Ontario takes more than just buying a property—it requires strategy, planning, and a solid understanding of your role. By following these five hot tips, you’ll avoid common pitfalls and set yourself up for long-term success.

Are you ready to take the next step in your real estate journey? Contact us today to learn more about how to manage your investment and grow your portfolio in Ontario’s thriving real estate market.