Renting Your First Apartment or House

What to consider before you rent:

If you choose to rent, you may not have to pay for:

• Utilities such as water is included in the rent 
• Property taxes 
• Home maintenance costs 
• Real estate agent fees 

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Additional advantages of renting include:

• There is no long-term commitment 
• Renting may be cheaper than buying a home 
• If something were to break and you are not responsible for it, a superintendent or landlord will usually arrange to replace or repair it 

Check your credit report 

Your credit report may affect your options when you decide to move in on your own. Having a good credit score is very important when renting properties. Missing a payment for your rent or utilities could hurt your credit score.

Rent within your budget

Your rent payment and household-related expenses should not be higher than 35% of your gross household income. The gross household income is all income you receive before taxes and deductions. If you spend too much on rent, it may be challenging to cover your additional expenses or saving for the future. 

What you should know about rental agreements 

A rental agreement will include:

• Rules that your landlord requires all tenants to follow 
• Services that are included in the monthly payment such as electricity or parking 
• The security deposit amount and any conditions 
• When the landlord can increase the rent and by how much 
• Certain conditions for the termination of a rental agreement 
• Any separate additional charges 
• The date you must pay rent 
• The monthly rent amount 
• The length of time you agree to stay in the rental unit 
• The tenant’s and landlord’s name, addresses and contact information

Security deposits 

Before you rent a unit, your landlord may ask you to pay a security deposit known as last month’s rent.Generally, the security deposit cannot be higher than the cost of one month’s rent. 

Subletting 

If for any reason, you need to move out before your rental agreement ends, you have the option of subletting your rental unit. You will need permission from your landlord first to proceed with this action. By subletting your rental unit, you need to find someone to move in to pay rent and follow the rental agreement requirements. 

Living with a roommate

To reduce your expenses, consider sharing the cost of rent, utilities, and other costs with roommates. If this is an option for you, decide your living arrangements and financial responsibilities. 

For example, figure out the following:

• how you’ll divide the rent
• how you’ll divide the security deposit
• if you’ll share bills and expenses or pay for them separately
• what each of you will buy for the rental unit and who will keep each item after the rental agreement is expired

Costs of renting

Before you rent, consider all the costs:

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Utilities and telecommunications

You may need to pay fees to setup new accounts with utility, cable, internet, or telephone companies. Also, you may need to pay security deposits on these accounts.

Moving expenses

You may need to add these upfront moving costs to your budget:

• truck rental
• movers
• moving boxes and other supplies
• time off work

Renter’s insurance

If you rent, consider getting tenant’s or renter’s insurance.

Consider getting enough insurance to cover the value of:

• damage to, or loss of, your possessions
• personal property stolen 
• accidental damage to the rental unit

Outfitting your place

If you’re moving out for the first time, you may need to buy:

• furniture
• dishes
• kitchen utensils
• small appliances
• bedding
• towels
• cleaning supplies

Ongoing costs of living on your own

You may also need to pay additional charges depending on what your rental agreement or lease covers:

• parking
• utilities such as hydro and heat
• telecommunications including internet, cable, telephone
• laundry
• snow removal
• lawn maintenance

For additional information go to the Financial Consumer Agency of Canada