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?”

[cjtoolbox name=’Renting Webinar’]

Related Posts:

Working with a Real Estate Agent to Find Rental Housing in Canada

Accommodation in Canada | Options & Solutions for Newcomers

Learn all about Souqh and their real estate and housing expertise (VIDEO)

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.

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

Working with a real estate agent is a reliable alternative way for newcomers to Canada to find their first long-term rental accommodation.

Why should newcomers consider working with a real estate agent (also known as a realtor) to find a rental?

Demand, competition, expertise, and access to landlords are four obvious reasons (also, searching for a rental yourself in a new country can create stress, delay, and wasted effort). 

Immigration helps drive rental demand

In Canada’s red-hot rental market, the demand for all types of rental accommodation has never been higher. 

The country’s ambitious immigration targets are fuelling rental demand as prices rise each month. And that demand will only get stronger across the country, particularly in Toronto, the Greater Toronto Area (GTA), and Ontario. 

Canada intends to welcome 465,000 new immigrants this year after admitting a record-breaking 431,000 newcomers in 2022 (mostly from India, the Philippines and China).

In 2024 that number will rise to 485,000 newcomers, and then to 500,000 in 2025. 

Competition for rentals is fierce

Canada has also welcomed a record number of international students. These numbers are forecast to continue to rise, again increasing the demand for rental housing.

With so many newcomers arriving in Canada, the competition for available rental accommodation continues to escalate. Typically, rental listings in Canada (particularly those with choice locations) receive multiple offers from newcomers and those already in Canada. And many of those applicants have done their research and are prepared to act quickly. 

Real estate agents have expertise

Real estate agents have the expertise to help newcomers find the rental accommodation they want, where they want it, and when they want it. 

According to the Real Estate Council of Ontario, whose membership is mandatory for all real estate professionals, there are more than 86,000 real estate agents in the province.

Key reasons to use a real estate agent in Canada

Using a real estate agent to help you find your ideal rental property typically costs nothing.  Your future landlord (the actual owner of the property) covers the realtor’s commissions. 

In Ontario and the GTA, more renters are using real estate agents because realtors:

• Know the market
• Have access to tools such as the multiple listing service (MLS) to find listings quickly and easily
• Are members of a regulated profession in Ontario and must register with the Real Estate Council of Ontario (RECO).
• Check for new rental listings regularly
• Understand the types of housing that will work for you
• Can recommend the neighbourhoods that would best suit your needs (schools, transportation, etc.)
• Have longstanding relationships with landlords
• Understand and can negotiate lease terms with the landlord
• Will explain the terms and conditions of your rental agreement and make sure you understand your tenant obligations and responsibilities (for example, renter’s insurance).
• Ensure your rental is in good condition and record any existing damage in advance
• Will keep in touch with you to make sure everything is running smoothly. Smart agents know that you may eventually buy a home, and they’d obviously like to have you as a client.

Finally, the realtor’s access to landlords and listings cannot be overstated. Because of this access, realtors know about rental properties that aren’t listed on rental sites, or that are about to be listed. So, you get a head start on the competition. This is particularly true regarding Toronto/GTA condo owners who often work only through real estate agents.

These are just some of the advantages that come with working with a real estate agent. 

Other factors to consider

While real estate agents in Ontario are licensed, there are still some other things newcomers should consider when deciding to work with one to find a rental:

• You will be working with a second party (the realtor). If you are the type of person who likes to have total control over every step in the rental process, this arrangement might not be for you.
• Realtors have multiple clients, and their main focus is obviously on selling houses, so at times, they may be busy with other clients. Be sure to discuss this with the agent.
• Ensure that the realtor knows the market where you’re hoping to live. Good two-way communication helps.
• Ensure you discuss ALL fees and how they are paid (again, in Ontario, typically by the property owner) upfront with your realtor to avoid surprises. While the owner of the rental property typically covers the agent’s fees, some agents may ask you for a fee upfront to begin the process.
• Show up on time for viewings and avoid cancelling at the last minute. Cancelling last minute is unacceptable and will show disrespect to the realtor and the landlord. So, be sure to communicate effectively.
• Be sure to have proof of employment, proof of funds, proper documents, proof of banking, etc. before you engage with a real estate agent.

Finding a real estate agent in Canada

So how do you find the real estate agent that’s right for you?

Prepare for Canada and Rentals for Newcomers has partnered with Souqh to make it easy for newcomers and international students to work with a real estate agent to find rental accommodation.

Souqh is a Canadian real estate and home services marketplace whose goal is to simplify every step of the home buying, ownership, and rental journey. 

Connecting newcomers with realtors

Ahmer Rafiq, Souqh’s CEO, says his company partnered with Prepare for Canada and Rentals for Newcomers “to connect immigrants with realtors and assist with finding rentals across Ontario.”

“We have onboard 3,000+ real estate/home services professionals onto our marketplace across Ontario, and … we have partnered with ten real estate boards and associations across Ontario.”

Dave Frattini, the managing partner of Prepare for Canada and Rentals for Newcomers, is excited to work with Souqh to help newcomers access real estate agents.

“Prepare for Canada has been helping newcomers make connections that simplify the immigration journey for over 12 years, said Frattini, and Souqh is Canada’s real estate and home services marketplace. Together we’re on a mission to help newcomers enter the rental market faster and easier than ever by connecting newcomers with real estate agents who can assist in finding the rental property that’s right for our newcomer audience’s needs.”

How to register

If working with realtors to find accommodation in Ontario appeals to you, click here to register with Souqh. Once you register, a real estate agent in the city where you wish to rent will respond to you.

And remember: If you’re not in Canada or Ontario yet, but are arriving soon, please register for our Renting in Canada webinar to learn all about working with a real estate agent, finding your own rental, renting a room in a home,  and all the other options for finding rental accommodation in Ontario and Canada.