Searching for housing in Canada as a newcomer can be challenging. Working with a real estate agent to help you search for a rental is a great way to navigate the process. If you’re searching for a rental, you likely have things to ask a realtor about when renting your first home. Canada’s rental market is ultra-competitive right now. Vacancy rates in large and mid-sized cities across the country are at record lows (around 1.5 percent), prices continue to rise, and landlords may have multiple applicants for their rentals.
The competition gets more intense, with record numbers of newcomers arriving every month. Canada is working to increase its rental stock, but a surplus of rental units is years away.
Explaining the Rental Process to Newcomers
Nasma Ali, a Toronto real estate broker and founder of OneGroupToronto told Prepare for Canada that a licensed, experienced real estate agent (or realtor) can guide newcomers through a sometimes complicated rental agreement and process.
In addition to using their experience and contacts to help you find a rental home, “it’s good to have a realtor,” said Ali, “to guide you through the rental process and explain what each of the clauses (in the agreement) means. What are your rights and obligations, and what are you signing?”
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Ali says a real estate agent can also protect newcomers against landlords who try to “sneak something that’s not lawful” into the agreement. The realtor, she says, “is going to be advocating for you and protecting your rights.”
There are approximately 85,000 licenced realtors in Ontario. Prepare for Canada and Souqh, a fintech company, have partnered to give newcomers a FREE and easy way to find a realtor in the city where they wish to settle.
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Souqh partnered with Prepare for Canada and Rentals for Newcomers to connect immigrants with realtors and assist with finding rentals across Ontario.
Ahmer Rafiq, CEO, Souqh
5 Common Things Newcomers Ask a Realtor
If you’re interested in working with a realtor to find your first rental home in Canada, here are some common questions newcomers ask about the process:
1. Is it expensive to work with a real estate agent?
Using a real estate agent to help find your first rental home in Canada costs you, the tenant, nothing. Your future landlord (the actual owner of the property) pays the realtor’s commissions and fees. However, be sure to check any agreement that you sign, either with the realtor or the landlord, carefully for hidden fees. If the realtor asks you to pay an additional cost, you can walk away and find another agent.
2. Will searching for a rental on my own be less expensive than using a real estate agent?
Newcomers who choose to find their own apartment for rent will find that the main cost is time…and stress! Canada’s rental market is competitive, with low vacancy rates below 2 percent in most large and medium-sized cities. This means many people are competing for the same rental home. Canada will welcome 485,000 newcomers in 2024 and 500,000 in 2025, so many newcomers are looking for a rental.
According to a recent Rentals.ca Canadian Renter Survey, 34 percent of people surveyed have been looking for a place for at least two months, with 15 percent searching for more than six months. So, it could take you that long to find a spot on your own.
Sites such as Rentals for Newcomers, which is unrestricted, provide listings from landlords who value newcomers as tenants. But, you must search, inspect, and negotiate simultaneously as you are likely looking for a job and getting settled.
As they say, time is money, and your time as a newcomer is best spent viewing the rentals in person, not searching for them.
3. Can I work with more than one real estate agent?
You can, but it is not advised, particularly if you have signed a representation agreement. It’s doubtful a realtor will work with you or put in their best effort if you have multiple real estate agents.
It’s smarter to select a realtor who knows the city or neighbourhood where you wish to live and trust their experience and knowledge.
4. Why do real estate agents recommend that I buy renters insurance?
While tenant insurance is not mandatory, most renters in Canada get renter’s insurance. This is mainly because many landlords and buildings require it. Many landlords will only rent to you with insurance and may insist that the realtor only present tenants willing to get it.
When renting your first long-term home as a newcomer, you don’t own the property, but you most likely own the contents, such as furniture, electronics, and other personal possessions, unless you rent a furnished place. Personal items, including valuables such as jewellery, can be costly to replace if you have to pay out of pocket for them.
Also, if you cause damage to the landlord’s property, tenant insurance can cover you for those damages. And, if you must move out temporarily due to damage (water, fire, etc.), tenant insurance can help cover your temporary costs.
5. How much would I pay for a one-bedroom apartment in Canada?
As of May 2024, the national average asking price for a one-bedroom apartment was $2,188, according to Rentals.ca National Rent Report.* That’s a 9.3 percent year-over-year increase.
But asking prices for a one-bedroom vary by province and city.
For example, a one-bedroom in Vancouver (the priciest city for rent) is $2,646. In Toronto, it is $2,459. The cheapest rent in Ontario in a large or medium-sized city is Windsor at $1,553. Rents are more affordable in the western provinces, particularly in Saskatchewan. The asking rent in Saskatoon is $1,215 for a one-bedroom and $1,251 in Regina.
If you have recently arrived in Canada, discover how to find a realtor to find the perfect home for you!
Summary:
- Newcomers to Canada face challenges when searching for rental homes.
- Working with a real estate agent can help.
- Nasma Ali, a real estate broker and founder of One Group Toronto emphasizes the importance of having a realtor to guide newcomers through the rental agreement and process, protecting their rights and advocating for them against landlords.
- Using a real estate agent costs you nothing, as the landlord pays commissions and fees.
- Consider signing with a realtor who knows the desired city or neighbourhood.
- Check any agreements carefully for hidden fees.
- Consider getting tenant insurance, as most landlords require it.
- Renters insurance is recommended to cover personal possessions and potential damages to the property.
Action Plan for Newcomers:
- Register for Prepare for Canada’s FREE webinar “Using a Real Estate Agent to Find a Rental Property“
- Register with Prepare for Canada and Souqh to connect with an Ontario Real Estate Agent.
- Follow monthly trends in the Canadian rental market
* Rental prices across Canada can change monthly
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
Prepare for Canada did not use AI-generated content in writing this story; all sources are cited and credited where possible.
© Prepare for 2024
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
