Renting to Students in Ontario: A Landlord’s Guide

Introduction

Ontario, with its world-renowned universities and colleges, is a hotspot for student housing. Cities like Toronto, Ottawa, London, Waterloo, and Kingston see a constant demand for off-campus accommodation, making renting to students in Ontario an attractive option for landlords. However, while it offers great income potential, it also presents a set of unique challenges and legal requirements.

Whether you’re a first-time landlord or an experienced property owner, understanding how to successfully rent to students in Ontario requires a strategic approach. This guide explores the pros, cons, legal frameworks, and best practices involved in managing student rentals.

Why Rent to Students in Ontario?

Ontario is home to over 40 universities and colleges, including top-tier institutions like the University of Toronto, McMaster University, Western University, and Queen’s University. Each academic year, hundreds of thousands of students search for housing.

Here are some compelling reasons why renting to students in Ontario can be a smart investment:

• Consistent demand: Every semester brings new tenants.

• Higher rental income: Landlords can often rent by the room rather than the entire unit.

• Low vacancy risk: Properties close to campuses rarely stay empty.

• Flexible lease terms: Many students look for 8-month or 12-month leases, giving landlords scheduling freedom.

Legal Framework for Student Rentals in Ontario

Before jumping into the market, landlords must understand their legal obligations under Ontario’s Residential Tenancies Act (RTA). Student tenants are entitled to the same rights as any other tenant, regardless of their age or student status.

Key Legal Considerations:

• Standard Lease: As of April 30, 2018, Ontario requires a standardized lease form. Ensure it is used for all rental agreements.

• Security Deposits: Landlords can only collect a rent deposit (equivalent to one month’s rent). Security or damage deposits are illegal.

• Rent Increases: Rent can only be increased once every 12 months and within the government-regulated guidelines.

• Maintenance: Landlords are responsible for keeping the property in a good state of repair.

Understanding these rules is essential to avoid legal issues when renting to students in Ontario.

Choosing the Right Property for Student Rentals

Location is key. Students prioritize proximity to campus, public transit, grocery stores, and other amenities.

Ideal Property Features:

• Within walking distance to campus

• Safe neighborhood

• Multiple bedrooms (to rent individually)

• Access to laundry, kitchen, and common space

• Internet and utilities included in rent

Properties that meet these criteria are more likely to attract reliable student tenants and command higher rent.

Screening Student Tenants

Unlike traditional tenants, students may lack employment history or credit scores. However, that doesn’t mean landlords should skip due diligence.

Tips for Screening Students:

• Ask for guarantors (typically parents) who can co-sign the lease.

• Require references (e.g., from previous landlords or professors).

• Meet the tenants in person or schedule virtual interviews.

• Collect student IDs and proof of enrollment.

Being thorough during the screening process helps mitigate risks and ensures a better landlord-tenant relationship.

Setting Up the Lease Agreement

When renting to students in Ontario, a well-drafted lease agreement protects both parties. Use Ontario’s standard lease form and make sure to include:

• Names of all tenants

• Monthly rent amount and due date

• Duration of lease (academic year or 12 months)

• Responsibilities for utilities and maintenance

• Rules about guests, smoking, noise, and common areas

Some landlords opt for individual leases per room, while others go with joint leases. Each has pros and cons:

Managing Utilities and Furnishings

Students often look for fully furnished rentals with utilities included. While this can be more work upfront, it adds value and attracts more interest.

Common Inclusions:

• Bed, desk, chair, dresser

• Shared kitchen appliances

• Wi-Fi and basic cable

• Hydro, heat, water

Bundle utilities into the rent or set a cap, but clarify usage limits in the lease to avoid disputes.

Dealing with Common Issues

Student housing comes with its quirks. From late-night parties to lack of experience in maintaining property, landlords must be proactive.

Common Challenges:

• Noise complaints: Address in the lease and issue warnings.

• Property damage: Conduct inspections every 3–4 months.

• Lease breaks: Students may drop out or go on exchange; include subletting clauses in the agreement.

Having clear communication channels and setting expectations early can prevent many of these issues.

Landlord Responsibilities

Under the law, landlords must ensure the property is safe, clean, and in good repair. Specific duties include:

• Ensuring smoke and carbon monoxide detectors work

• Keeping hallways and exits clear

• Managing pest control

• Addressing maintenance requests promptly

• Providing a legal rent receipt if requested

Neglecting these responsibilities not only affects student safety but also exposes landlords to fines or legal action.

Marketing Your Student Rental

When targeting student tenants, use platforms and strategies they frequent.

Best Channels:

• Facebook Marketplace

• Kijiji

• University off-campus housing boards

• Word of mouth or student groups

Make listings student-friendly: include high-quality photos, list amenities, mention distance from campus, and clearly state monthly rent (with or without utilities).

Tips for Maintaining a Good Landlord-Student Relationship

Building rapport with student tenants can reduce turnover and help keep the unit in better condition.

• Conduct a move-in orientation

• Set communication boundaries (e.g., text only during business hours)

• Be approachable but professional

• Reward good behavior (e.g., a gift card for on-time rent all year)

Mutual respect goes a long way in keeping your rental stress-free.

Frequently Asked Questions (FAQs)

1. Can I rent to multiple students in one unit in Ontario?

Yes, but you must ensure the property complies with local bylaws regarding occupancy limits and rooming house licenses.

2. Do I need a special license to rent to students in Ontario?

In some cities like Waterloo or Oshawa, landlords must apply for a rental housing license. Check your municipality’s guidelines.

3. Can I collect a damage deposit from student tenants?

No. In Ontario, landlords can only collect a rent deposit (last month’s rent), not a damage deposit.

4. Should I include utilities in the rent?

Including utilities simplifies billing and attracts more tenants, but you can also set a cap or charge separately.

5. Can students break their lease early?

Not without consequences. If included in the lease, they may sublet or assign the unit, but they must get your consent.

6. How can I protect my property from damage?

Conduct regular inspections, use detailed lease agreements, and require parental co-signers.

7. Do students qualify for rent control?

Yes. Student rentals fall under the Residential Tenancies Act, which includes rent control provisions unless exempt (e.g., newer buildings).

8. Is it better to rent by the room or the unit?

Renting by the room usually yields more income but requires more administrative effort. Joint leases are easier but riskier if one tenant defaults.

Conclusion

Renting to students in Ontario is a lucrative opportunity for landlords who understand the market, follow the law, and create student-friendly living spaces. From screening tenants and drafting bulletproof leases to maintaining the property and dealing with challenges, successful student rentals are all about balance.

With Ontario’s large student population and constant turnover, the demand remains strong year-round. By being proactive, transparent, and legally compliant, you can build a profitable and rewarding rental business catering to students.

Whether you’re investing in your first student property or scaling your portfolio, now is the time to take advantage of Ontario’s booming off-campus rental market. With the right strategy and preparation, renting to students can be a smart and sustainable source of income.

Also Read: Pierre Fitzgibbon