Renting in Toronto as an American: leases and deposits

Toronto rents have cooled off from their peak, and Ontario's tenant rules are stronger than what most of us are used to back home. The catch: you'll be competing without a Canadian credit history.

The short version

Asking rent for an unfurnished one-bedroom in the City of Toronto averaged about CAD 1,969 (about USD 1,400) in October 2026, down 3.7% from a year earlier, according to one private listings site [1].
Most private landlords must use Ontario's standard lease [2].
The only deposit a landlord can require is a rent deposit of up to one month's rent, and it can only be used for your last month. It earns interest every year [3].
In most units, rent can rise only once every 12 months, with 90 days' written notice, and by no more than the provincial guideline: 2.1% in 2026 and 1.9% in 2027 [3][4][2]. Units first occupied after November 15, 2018, are exempt from the guideline [3].
Rental scams are common. Never send money for a place you haven't seen in person or by live video with someone you've verified.

What it costs

Rents depend a lot on where you look and what kind of building you're in. There are two main types of rental housing in Toronto: purpose-built rental buildings, owned by one landlord, and condo units rented out by individual owners.

Measure	Toronto (CAD)	About in USD	Source
Average asking rent, 1-bedroom, City of Toronto, Oct. 2026	1,969	1,400	Private listings data [1]
Average asking rent, 2-bedroom, downtown, Oct. 2026	2,825	2,020	Private listings data [1]
Average rent, 2-bedroom, purpose-built, Greater Toronto, 2025	2,034	1,450	CMHC [5]
Average rent, 2-bedroom, rented condo, Greater Toronto, 2025	2,904	2,075	CMHC [5]

USD conversions use the Bank of Canada rate of 1.3989 CAD per USD (November 5, 2026) [6].

A heads-up on reading those numbers: CMHC's figures for purpose-built buildings include tenants who've been in place for years at older, lower rents. As a newcomer you'll pay something closer to the asking rents in the listings data. The purpose-built vacancy rate in the Greater Toronto Area was about 3% in 2025, while condo rentals were much tighter, at about 1% [5].

Where Americans tend to live

There's no "American neighborhood" in Toronto, and that's part of the charm. Americans spread out based on work, schools and budget.

Downtown and the waterfront (King West, Liberty Village, CityPlace, St. Lawrence): condo towers, short commutes to the Financial District, and lots of one-bedrooms. Expect smaller square footage. A one-bedroom of 500–600 sq ft (about 45–55 m²) is common.
The Annex and Yorkville: older houses split into apartments near the University of Toronto, plus pricier condos.
Leslieville and Riverside: east-end streets with a neighborhood feel, popular with young families.
Midtown (Yonge and Eglinton, Davisville): good subway access and family-friendly streets.
The Junction and Roncesvalles: west-end, walkable, a bit more relaxed.
North York: more space for the money and good transit along the Yonge line.

If you're coming with kids, choose your school first and your apartment second. Our guide to schools in Toronto explains how public school catchment areas work.

Finding a place

Toronto's market moves fast, especially in late summer. Most listings go up four to eight weeks before the move-in date, and the first of the month is the usual start.

Where listings are

Condo rentals are often listed by real estate agents on the MLS system, and you can have an agent show you around. When a listing agent is involved, the landlord often covers the commission, but confirm before you sign anything with an agent. Purpose-built buildings often lease directly through their own websites or offices. Smaller landlords post on the big listings sites and classifieds.

The application

Expect a landlord to ask for:

A rental application with your employment details.
Proof of income, usually a job letter and recent pay stubs.
A credit report. This is where Americans hit a snag: your US FICO score doesn't transfer, and you'll start with no Canadian file.
References from past landlords.
Photo ID, usually your passport and your work or study permit.

Without Canadian credit, offer extra comfort: a strong job letter, a US credit report, a guarantor, or a larger savings balance. Some newcomers volunteer to prepay several months of rent. A landlord can't require more than the last month's rent deposit [3], so if you offer more, keep it in writing and understand the risk. Start building a Canadian file right away. See building Canadian credit as an American.

Leases and deposits: the Ontario rules

This is where Ontario looks very different from most US states.

The standard lease

Landlords of most private residential units must use Ontario's standard lease template for new leases [2]. If you ask for one in writing and don't get it within 21 days, you can withhold one month's rent; you can't withhold more than one month [2]. The standard lease spells out what's included, like utilities, parking and laundry, and whether you need tenant insurance. Many landlords require it.

Deposits

Under Ontario's Residential Tenancies Act [3]:

The rent deposit can't be more than one month's rent.
It can only be used for the last month's rent, not for repairs or damage.
The landlord must pay interest on it each year, at the rent increase guideline rate.

So there's no American-style "security deposit" that a landlord can keep for damage. Instead, a landlord can take you to the Landlord and Tenant Board (LTB) if you damage the unit. A refundable key or fob deposit is normal. Landlords can't make you pay with post-dated checks or automatic payments, though you can agree to them [3].

Rent increases

For most units, rent can go up only once 12 months have passed, with at least 90 days' written notice on the proper LTB form [3]. The increase can't exceed the provincial guideline without LTB approval. The guideline was 2.1% for 2026 [4], and Ontario has set it at 1.9% for 2027 [2].

The big exception: units that weren't occupied as homes on or before November 15, 2018, are exempt from the guideline [3]. That covers many newer condos. Your rent can still rise only once a year with 90 days' notice, but by any amount. Ask about it before signing, because it's a real budget risk.

Moving out

On a monthly or fixed-term tenancy, you generally give at least 60 days' notice using LTB Form N9 [3]. At the end of a one-year lease, you don't have to sign a new one; the tenancy usually continues month to month.

For more detail on evictions and the LTB, see our guide to tenant rights in Ontario.

Avoiding rental scams

Scammers love newcomers who are apartment hunting from out of town. Red flags:

The rent is way below similar places nearby.
The "landlord" is overseas and can't show you the unit.
You're asked to send a deposit by wire, gift card or crypto before a viewing.
They pressure you to decide today.
They won't use the standard lease.

Safer habits: see the place in person or by live video, check that the person showing it has the keys and owns it (or is a registered agent), and pay the deposit only after you've signed the lease. If you're booking a short-term place first, use a platform with payment protection. And if something feels off, ask in our community group for Americans in Canada whether anyone knows the building.

Renting in Toronto: what Americans need to know before signing