If you’re renting out a single condo unit, a basement apartment, or a unit in a small house, RentSafeTO and Toronto’s multi-tenant house licensing almost certainly don’t apply to you — those target larger apartment buildings and rooming houses specifically. What does apply to nearly every Toronto landlord: the Residential Tenancies Act (notice periods, rent rules, deposit limits, the LTB process), and, if you’re renting out a basement or secondary unit, the City’s second-unit registration requirements. Get the lease, the notice rules, and the registration piece right before you get a tenant in the door.
- Most first-time Toronto landlords are outside RentSafeTO’s scope — it only applies to buildings with 3+ storeys and 10+ rental units.
- Multi-tenant house licensing applies to rooming houses (4+ rooms rented individually) — not a single self-contained unit rented to one household.
- If you’re renting a basement or secondary unit, check the City’s second-unit registration requirements before advertising it.
- The Residential Tenancies Act applies to practically every Toronto tenancy regardless of building size — notice periods, deposit rules, and the LTB process all come from there.
- A proper written lease and correct notice periods matter more to your outcome than any municipal licensing question.
- Toronto’s condo- and basement-heavy rental stock means most new landlords here are small-scale — the rules that actually bind you are simpler than they look at first.
What Probably Doesn’t Apply to You
A lot of what gets written about "Toronto landlord rules" is actually aimed at large apartment buildings, not the single unit most first-time landlords are renting out. RentSafeTO — the City’s apartment building standards program — only applies to buildings with three or more storeys and ten or more rental units under common ownership or management. A single condo unit, a basement apartment, or one unit in a small house generally isn’t covered. Similarly, multi-tenant house licensing applies to a specific arrangement — four or more individual rooms rented separately to people who aren’t one household — not a self-contained unit rented to a single tenant or family under one lease.
Knowing what doesn’t apply to you saves real confusion. If you’re renting out one condo or one basement unit, you don’t need a RentSafeTO licence or a multi-tenant house licence — your obligations come from a different, simpler source: the Residential Tenancies Act.
Renting a Basement or Secondary Unit
If your first rental is a basement apartment or another secondary unit inside a house, there’s a separate question worth checking before you advertise it: whether the unit is properly registered with the City as a second unit, which ties into building and fire code compliance for that specific space. This isn’t the same requirement as RentSafeTO or multi-tenant house licensing — it’s a distinct, narrower process aimed specifically at secondary suites in houses. Confirm this with Toronto Building before you have a tenant move in, not after.
Getting the Lease Right
Ontario requires the use of the standard form lease for most residential tenancies, and using it properly matters more than people expect. A written lease sets the rent, the term, and the basic terms of the tenancy clearly, and it is the document an LTB adjudicator will look at first if a dispute ever comes up. Verbal side agreements — about who pays for what, about parking, about a "trial period" — generally don’t hold up well against a written lease and can create real problems later.
Have your lease reviewed before you use it for the first time, not after a dispute starts. A half-hour review at the start is far cheaper than fixing a bad lease once a tenant has already moved in.
Rent, Deposits, and Increases
You can collect a rent deposit of up to one month’s rent, applied to the last rental period — not a separate damage deposit, and not more than that amount. See our guide on last month’s rent deposits for the interest you owe on it and how it gets applied. Rent increases are governed by the province’s annual guideline for most tenancies, with specific rules for anything above the guideline and for exemptions (including a general exemption for units first occupied after November 15, 2018). Get the deposit and increase rules right from the start; both are common sources of disputes that end up at the LTB.
If You Need to End the Tenancy
The notice period and the form you use both depend entirely on the reason. Ending a tenancy for your own use is a common route for a small-scale landlord, but it currently requires at least 60 days’ notice, carries a genuine good-faith requirement, and — depending on the notice period you give — may require compensation to the tenant. Non-payment of rent and other grounds each have their own forms and timelines. Using the wrong form, or giving too little notice, is one of the most common reasons an otherwise valid reason to end a tenancy gets thrown out at the LTB. See our guide on the current N12 own-use eviction rules if ending the tenancy yourself is part of your plan.
When to Get Advice Before You Start
Most first-time Toronto landlords don’t need a lawyer for every step — but a short conversation before you list the unit, sign a lease, or serve any notice can prevent the kind of mistake that’s expensive to unwind later. That’s especially true if your unit might brush up against a grey area (a basement unit that could be read as part of a larger arrangement, a house with multiple tenants on separate agreements) rather than a clearly straightforward single-tenancy rental.
Renting out your first unit in Toronto? Call us at 416-274-2222 for a free consultation — lease review, notice forms, and a clear answer on which City rules actually apply to you.
Frequently Asked Questions
No. RentSafeTO applies only to apartment buildings with three or more storeys and ten or more rental units under common ownership or management. A single condo unit you personally own and rent out doesn’t fall into that category, even though the building itself might be subject to other City requirements as a condo corporation.
Generally no, if you’re renting the whole basement unit to one household (a family, a couple, roommates signing one lease together). Multi-tenant house licensing targets a different arrangement — renting four or more individual rooms separately to people who aren’t one household. If you’re not doing that, this licensing category likely doesn’t apply.
Toronto has requirements for registering secondary suites (like basement apartments) in houses, tied to building and fire code compliance. If you’re renting out a basement or other secondary unit in a house, check with Toronto Building before advertising it — this is a separate question from RentSafeTO or multi-tenant house licensing.
It depends entirely on the reason. Ending a tenancy for your own use currently requires 60 days’ notice (and, depending on how much notice you give, compensation may apply under recent rule changes). Non-payment of rent and other reasons have their own, different notice periods and forms. Get the reason and the form right before serving anything.
In Ontario, a landlord can collect a rent deposit of no more than one month’s rent (or one rental period’s worth, if shorter), applied to the last rental period — not a separate "damage deposit." Asking for more, or for a deposit framed differently, isn’t permitted under the Residential Tenancies Act.
Treating the lease and notice process casually because the tenant seems reasonable at move-in. Verbal side agreements, incomplete leases, and improperly served notices are the most common reasons a straightforward landlord-tenant relationship turns into a contested LTB application later.