Renting in Toronto: how it works for Australians

Renting in Toronto feels familiar until you hit the deposit, the lease form and the rent increase rules. Then it's very Ontario.

The short version

An unfurnished one-bedroom in the City of Toronto averaged about CA$1,970 a month in October 2026, and about CA$2,080 downtown [3].
There's no Australian-style bond. Landlords can take a deposit of up to one month's rent, and it can only be used for your last month [1].
Most leases must use Ontario's Residential Tenancy Agreement, known as the standard lease [1].
Older units have rent increases capped by a yearly guideline: 2.1% for 2026 and 1.9% for 2027. Units first occupied after 15 November 2018 generally don't [2].
When a fixed-term lease ends you don't have to leave. It rolls onto month-to-month [1].

What rent costs in 2026

Toronto rents have cooled since their peak, which is good timing for new arrivals. Asking rents for one-bedrooms fell year on year to October 2026, and North York saw one of the sharpest drops [3].

Unit type (October 2026)	Average asking rent	Notes
One-bedroom, City of Toronto, unfurnished	about CA$1,970 a month	Down about 4% on a year earlier [3]
One-bedroom, City of Toronto, furnished	about CA$1,940 a month	Furnished stock varies a lot in quality [3]
One-bedroom, downtown, unfurnished	about CA$2,080 a month	Mostly condo towers [3]
Two-bedroom, downtown, unfurnished	about CA$2,830 a month	Popular for sharers [3]
One-bedroom, North York, unfurnished	about CA$1,970 a month	Down nearly 10% on a year earlier [3]

These are asking rents for listed units, not what sitting tenants pay. Expect real offers to land in a range around these averages depending on the building, floor and how close you are to the subway.

What's usually included

Ask every time. In older apartment buildings heat and water are often included in the rent. In condos you may pay your own electricity (hydro, in local speak) on a time-of-use rate; Toronto Hydro's winter off-peak rate from November 2026 is 9.1 cents per kWh and on-peak is 18.9 cents [4]. Internet, parking and storage lockers are frequently extras.

Condo, apartment or basement flat?

Toronto's rental stock comes in three flavours, and each comes with a different landlord.

Condo units. Owned by an individual investor and rented out, often through a real estate agent. Newer, with gyms and concierges, but your landlord might be one person with one unit and little experience.
Purpose-built rental buildings. Owned by a company and run by a property manager. Usually older, with bigger rooms, and many are covered by the rent increase guideline.
Basement and house flats. Common in the Annex, Leslieville, the Danforth and Roncesvalles. Cheaper and more character, but check ceiling height, windows, heating and whether it's a legal unit.

How renting works in Ontario

Ontario's Residential Tenancies Act and the Landlord and Tenant Board (LTB) set the rules. Here are the ones that surprise Australians most.

The deposit is your last month's rent

There's no bond lodged with a government body. Instead, a landlord can ask for a rent deposit of no more than one month's rent. It can only be used to pay rent for your final month, not to fix damage, and the landlord must pay you interest on it each year at the guideline rate [1]. So on signing, you'll typically pay first and last month's rent up front.

Post-dated cheques are optional

Landlords can't make you pay by post-dated cheques or automatic withdrawals, although you can agree to it [1]. Many will ask, so don't be surprised. Canadian chequebooks are still a thing.

The standard lease

For most tenancies agreed on or after 30 April 2018, landlords must use the Residential Tenancy Agreement, Ontario's standard lease. If they don't, you can ask for it in writing. They also have to give you a copy of the signed lease within 21 days [1]. Read the additional terms section carefully; that's where landlords add rules about smoking, pets or tenant insurance.

Rent increases

Rent can usually only go up once every 12 months, with at least 90 days' written notice on the correct LTB form [1]. For units covered by the guideline, the cap is 2.1% in 2026 and 1.9% in 2027 [2]. But new buildings and most units first occupied after 15 November 2018 are exempt from the guideline. The landlord still has to give notice, but there's no limit on how much rent can rise [2]. Ask when the unit was first occupied before you sign, especially in a shiny new condo.

Ending a lease

When a one-year lease ends, you can stay on as a monthly tenant under the same terms [1]. To leave, give at least 60 days' written notice on the LTB's Form N9, ending on the last day of a rental period, and no earlier than the end of a fixed term [1]. You and the landlord can also agree to end things early.

Finding a place: step by step

Book temporary accommodation first. Two to four weeks gives you time to view in person.
Prepare your file. Passport, work permit, an employment letter or offer, recent payslips or bank statements, and a short intro about yourself. A new arrival has no Canadian credit history, which is the main hurdle.
Offer something extra to cover your missing credit history. A guarantor, proof of savings or a larger share of rent up front can help. Note that the deposit itself is capped at one month [1].
Search widely. Mix the big listing platforms with local Facebook groups and agents who handle condo rentals.
View before you pay. Never send money for a unit you haven't seen or a landlord you can't verify. Rental scams in Toronto often feature a flat that's cheaper than the market and an owner who's "overseas".
Get the standard lease and a receipt. Pay by traceable methods and keep records.
Buy tenant insurance if the lease asks for it. Plenty of landlords do.

Picking a neighbourhood for renting

Your budget and commute drive this. Inner neighbourhoods like the Annex, Trinity Bellwoods and Leslieville offer older flats in houses at prices that vary wildly by condition. King West, Liberty Village and CityPlace are dense with condos, convenient but compact. North York along the Yonge line and parts of Etobicoke and Scarborough are cheaper and still connected by subway. Our guide to moving to Toronto has a neighbourhood table with the trade-offs.

If you want a second opinion on a building or a landlord, ask in Cooee Canada, our Facebook group for Australians in Canada. Someone has often lived in the same tower.

Red flags to walk away from

A landlord who wants more than one month's deposit, or a separate "damage deposit" [1].
No standard lease, or a refusal to put things in writing [1].
Pressure to pay before a viewing.
A new building where the landlord promises the rent "can't go up much". If it was first occupied after November 2018, the guideline doesn't apply [2].
A basement flat with no proper window or second exit.

If something goes wrong once you've moved in, such as repairs that never happen or a notice that doesn't look right, the Landlord and Tenant Board is the body that decides disputes between landlords and tenants in Ontario [1]. Keep copies of every message, notice and receipt from day one. It makes any later conversation much easier.

Renting in Toronto: deposits, leases and rent rules Australians should know