The Pricing Trap:
In this environment, rental properties priced correctly will lease out quickly, while those priced according to 2023 rental rates will remain vacant, accumulating vacancy costs.
A Simple Math Check
- Two months of vacancy on a $2,700 property will result in a $5,400 loss in income, leaving the landlord in an unfavourable position, as chasing the market is never advisable.
- Pricing realistically at $2,600 and leasing in a week often beats holding out at $2,700 for 30 to 60 days.
- Add re-leasing, cleaning, painting, minor repairs, and the gap widens.
LANDLORD TAKEAWAY: Price according to market realities, and not what rental rate you would like to get or may have previously gotten.
Rent Control 101
Ontario’s rent control guidelines apply to units first occupied before November 15, 2018. Post-2018 units are not guideline-capped and can be leased out at market rental rates upon expiration of the term. That has had the effect of creating two parallel markets:
- Pre-2018 rent-controlled: Tenants appreciate the predictability, but landlords face rising costs that a 2.5 percent cap cannot cover.
- Post 2018, not rent-controlled: Landlords can adjust to the market, but in 2025, this is only relevant in a strong market where rents are appreciating. It also allows a landlord an easier route to get rid of problem tenants.
Tenants these days are more informed than ever. Eight out of ten renters Fox Marin speaks with initially start by asking for rent-controlled buildings. Many later trade certainty for newer, non-rent-controlled buildings in search of updated finishes, amenities, and modern layouts.
Dealing with The Landlord & Tenant Board
Wait times have improved from the pandemic’s 8 to 12 months, but a 4- to 6-month wait is still typical for a hearing. This can feel like an eternity to a landlord with a non-paying tenant, and if your notices were not served properly, you could find yourself back at square one.
It is essential, from the outset, for a landlord to understand that they have far fewer rights than one would expect. Even when the law supports a landlord’s position, it can be challenging to enforce it through the Landlord and Tenant Board (LTB). There is a significant risk and liability associated with being a landlord, which is why it is more important than ever for landlords to conduct thorough due diligence before considering renting out a property to a prospective tenant.
How To Qualify A Tenant:
Finding quality tenants in 2025 is becoming more critical than ever. Here is what every landlord should be reviewing when considering a rental candidate.
- Income clarity: Traditional T4S are no longer the whole picture. Self-employed income, multi-stream earnings, and contract work require context, not just PDFs.
- Calling all personal references and landlords
- Document integrity: Fraud is less prevalent than it was earlier this year, but it remains a concern. Anomalies in fonts, metadata, and letterhead, as well as pattern recognition, are key considerations.
- Story coherence: Great applications add up.
- In-person interviews
Pro tip: Fox Marin packages tenant applications like investment memos, complete with concise cover letters, a single, organized file, and all material questions answered in advance. This approach takes the mystery out of the process and removes any doubt or questions for prospective landlords or rental listing agents. Whether you are a tenant or landlord, the devil is in the details.
Presentation Of Your Rental Property Matters, Especially When Looking To Attract Quality Tenants:
THINGS TO PRIORITIZE TO ATTRACT THE BEST TENANTS:
- Professional photos
- Ensure the property has been professionally cleaned and repainted when required. Counters were wiped down, and there were no bad smells. Filters changed, and all appliances are in good working order. Burnt bulbs all replaced. Sounds basic, right? You would be surprised. The property needs to feel like a home without leaving anything to the imagination.
- Accurate and complete listing details, including parking, locker, utilities, pet policy, move-in fees, and building rules.
A good presentation in a competitive market landscape is often the difference between winning and losing.
Common Myths That Scare Off Good Tenants, While Offering No Additional Protection To A Landlord.
Many landlords have a misguided belief that there are air rights leases that can provide more protection than the standard lease form. Common examples that look aggressive but are not enforceable under the RTA or condo rules:
- “No pets” in all cases. Building bylaws can matter more than your lease.
- “Tenant pays the first 100 dollars of every repair.” Looks tidy, breaks down in practice.
- “Daily penalties for late rent.” Sounds firm, rarely stands up.
- “Damage or pet deposits.”
- “Months of rent upfront” as security.
Net effect: These examples are not enforceable, and instead of protecting landlords, they have the opposite effect, repelling quality renters who recognize red flags and potentially difficult or unreasonable landlords. In this competitive marketplace, the best advice for any landlord is to have a compliant lease and to try to go above and beyond with efforts such as a welcome letter, appliance guides, filter sizes, and a move-in checklist that sets everyone up for success. After all, if you are a landlord, you are in the business of relationships.
The Four Biggest Landlord Mistakes In 2025 & How To Avoid Them:
- OVERPRICING ON DAY ONE. This overshadows everything. Landlords should be priced by using comparables leased in the last 30 to 60 days in your building and micro area. Stick to it for 10 to 14 days before making any adjustments.
- UNDERINVESTING IN YOUR PROPERTY. Treat listings like you would a resale, light paint, deep clean, minor repairs, pro photos, and accurate copy. A $600 tune-up can save you a $5,400 vacancy and, more importantly, attract undesirable tenants.
- SLOPPY PAPERWORK. Use a clear, compliant lease. Avoid using scary, unenforceable clauses.
- WEAK TENANT VETTING. Verify income accurately, contact real supervisors, run credit checks, follow up with personal references and past landlords, and, when appropriate, conduct a video meeting interview between the landlord and prospective tenant.
Final Word
Landlording in Toronto can be viable and rewarding; however, now more than ever, it requires a disciplined and professional approach, just like any investment. It should be taken seriously at all times, and having an experienced team on your side is paramount.
If you are a landlord considering leasing your property, Fox Marin can assist with pricing, preparation, marketing, screening, and creating clean, compliant contracts that respect the law and your investment.
THINKING ABOUT LISTING YOUR RENTAL OR WANT A SECOND OPINION?
Reach out to Fox Marin. Contact Us (We’re Nice).
Fox Marin has earned its reputation as Toronto’s premiere downtown luxury real estate team, backed by over *$580 million in sales, more than 1,000 successful transactions, and over 450+ glowing 5-star Google Reviews. Discover the advantage of working with a proven team with a track record for winning results.
(*Source: January 1, 2018 – September 1, 2025, RE Stats Inc. & Exclusive)
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This article was written by Ralph Fox, Broker of Record and Managing Partner here at Fox Marin Associates. Ralph is a Torontonian native who recognized from an early age that the most successful people in life apply long-term thinking to their investments, relationships, and life goals. It’s this philosophy, along with his lifelong entrepreneurial drive and exceptional business instincts, that help to establish Ralph as a top agent in the real estate market in downtown Toronto.
