To buy or to rent?

At first when you arrive you will most probably choose to rent. Renting will give you time to settle and get more acquainted with the housing market.

Like most Canadians you will probably want to buy your own home once you are settled in Canada. Census data show that 2/3 of households own the home they live in.

The following paragraphs provide some information about housing and links you may consult about buying or renting in Canada.

If you need additional information about the housing market in the context of your immigration project do not hesitate to contact us.

Types of rental housing

• Studio: generally one room which serves as bedroom and living room with a little kitchen and a separate bathroom.
• « 3 1/2 »: One separate bedroom plus one living-dining room, a kitchen and a bathroom.
• « 4 1/2, 5 1/2, 6 1/2 ...» : usually 1,2 or 3 more rooms than 3 1/2 units.
  
  

Apartments may be rented empty or semi-furnished ( with appliances like stove and refrigerator but nothing more) or fully furnished. Mostly, they are rented as semi-furnished if not totally empty.

Cost of housing

Before renting it is important to figure out how much you can afford.

According to Statistics Canada and usually accepted rules of thumb, you should not use more than 30% of your income to lodge your family. The 2001 Census data show that Canadian households allocated 21.3% of their incomes to house themselves. Tenants allocated 28.2%. However you may have to pay more at first than once you have settled.

Data from the most recent Canadian Mortgage and Housing Corporation indicates that a 4 1/2 apartment will rent for an average of $760 in Canada. The average varies significantly from one province, city or neighbourhood to another. In some areas you may expect to pay less and in several others it may cost you 30% or even 40% more. To figure out your cost you will have to take these factors in consideration as well as your needs and your budget.

Before renting you also have to know if the asking rental price includes heating or if you are expected to pay for this as a supplement. In general you will have to pay for electricity, telephone, television and Internet services. These have to be purchased separately and are not included in rents. However as a general rule, tenants do not have to pay for water consumption and property taxes. These are at the owners expense. For their own protection it is recommended that tenants purchase insurance to cover the risks associated with renting an apartment, even though the owner may not require it.

Rental agreements

To rent an apartment you will be required to sign a rental agreement with the landlord. This agreement specifies the rental conditions such as the duration, price and respective duties and obligations of the tenant and of the owner. This is a legal document, a contract which aims to protect both signatories against risks the of a misunderstanding about each party's obligations in the course of the rental agreement.

Several provinces provide for a standard form. In Quebec the government agency which acts as rental board is the Régie du logement du Québec. It not only determines which form must be used in rental agreements, but it also sets the maximum allowable rent increases and may act as a tribunal in disputes between landlord and tenant.

Housing laws and regulations differ between provinces. For information about these you may consult the following Provincial and Territorial Fact Sheets on renting, prepared by the Canadian Mortgage and Housing Corporation.

Rights and obligations of tenants and landlords

The main obligation of the tenant is to pay the rent on time, usually on the first day of every month.

As for the main obligation of the landlord, it is to provide and maintain a housing unit and the equipment it includes in good and working condition. This includes things like the heating equipment, plumbing, electricity lines, locks, walls, floors, roofs, emergency exits, garages, elevators etc. as well as any furniture or appliance which may be included in the rental.

In Canada it is illegal for a landlord to refuse to rent for reasons related to things like race, colour of skin, religion or age. In most provinces it is also illegal for a landlord to refuse to rent you an apartment simply because you have children. Laws and regulations also protect tenants against abusive rent increases or expulsion.

Most rental agreements are for one year. In Quebec most also start July 1, which is moving day for hundreds of thousands of persons every year. There is thus a greater number of units available for rental in spring than during the second half of the year.

Useful links