Stay or Move
Renting After You Sell
Why renting after you sell can make sense, what it costs, and your rights as a tenant in Ontario.
After decades of owning a home, the idea of renting can feel like a step backwards. For many older adults, though, it turns out to be a relief: no roof to replace, no snow to shovel, and the money from the house working for you instead of sitting in bricks and mortar.
This guide explains why some people choose to rent after they sell, what costs to compare, how renting works in Ontario, and the questions worth asking before you sign a lease. It is general information, not legal or financial advice, so please confirm the details for your own situation.
Why some seniors rent after selling
Renting is not right for everyone, but it can make good sense at this stage of life. The reasons people give most often are:
- Flexibility. If your health, your family or your plans change, it is usually far easier to give notice on a rental than to sell a home again.
- No maintenance. Repairs to the furnace, roof, plumbing and appliances are generally the landlord’s job. For someone who has spent years managing contractors, that alone can feel like freedom.
- Freeing up equity. Selling a house that is fully paid for can release a large sum. Some people use it to top up their retirement income, help family, travel, or simply have a cushion for care costs later.
An example: a couple in their late seventies selling a backsplit in Scarborough might rent a two-bedroom apartment near their daughter in Markham. They no longer worry about the stairs or the yard, and if one of them later needs more care, they are not tied to a property they would have to sell in a hurry.
The costs to compare honestly
The most common worry is “Am I throwing money away on rent?” The fairest answer is to compare the full cost of each option, not just the rent cheque against a mortgage-free house. Owning a home is never free, even when it is paid off.
| If you stay and own | If you sell and rent |
|---|---|
| Property taxes | Monthly rent |
| Home insurance | Tenant (contents and liability) insurance |
| Repairs, maintenance and major replacements | Usually the landlord’s responsibility |
| Utilities, snow removal, lawn care | Depends on the lease: some utilities may be included, some not |
| Money tied up in the house | Sale proceeds available to invest or spend |
| Possible increase in the home’s value | Rent that may rise over time |
An independent financial advisor or accountant can help you put real numbers on both columns for the next five to ten years.
How renting works in Ontario
Most residential tenancies in Ontario are covered by the Residential Tenancies Act. A few basics are worth knowing before you start looking.
The standard lease
Ontario has a standard lease form that is required for most residential tenancy agreements signed on or after April 30, 2018. It sets out the rent, what it includes, and the rights and responsibilities of both sides in plain language. Some types of housing are not covered by it, including care homes, most social and supportive housing, and some special tenancies. The landlord must give you a copy of the signed agreement within 21 days. You can read more in the Guide to Ontario’s standard lease on ontario.ca.
Deposits
According to the Landlord and Tenant Board, a landlord can ask for a rent deposit of no more than one month’s rent. It must be used as the rent for the last month of your tenancy, not for damages, and the landlord must pay you interest on it every year. A landlord also cannot insist that you pay by post-dated cheques or automatic debit.
The Landlord and Tenant Board
The Landlord and Tenant Board (LTB) resolves disputes between landlords and tenants and provides information about rights and responsibilities under the law. An important protection: a landlord cannot simply tell you to leave. To evict a tenant, the landlord must first apply for and receive an eviction order from the LTB. Written notice from a landlord alone does not mean you have to move out. If you receive any notice you do not understand, get advice before you respond.
Rent increases and the November 2018 exemption
This is the rule that surprises people most, so it is worth reading carefully.
For most rental units, Ontario sets a yearly rent increase guideline, which is the most a landlord can raise the rent without approval from the LTB. The guideline is capped at 2.5%, and ontario.ca lists the guideline for 2027 as 1.9%. In general, rent can be increased only once at least 12 months have passed since the last increase or since the tenancy began, and the landlord must give written notice on the proper form at least 90 days before.
For someone on a fixed retirement income, this difference matters a great deal. A shiny new condo rental may cost more each year in ways that are hard to predict, while an older rent-controlled building offers more certainty.
Questions to ask a landlord
Take this list with you to viewings, and write down the answers. A good landlord will not mind.
- When was this unit first occupied as a residence? Is it covered by the rent increase guideline?
- Will you be using the Ontario standard lease?
- What exactly does the rent include: heat, hydro, water, parking, a storage locker?
- Is there an elevator, and what happens when it is out of service?
- Are there steps at the entrance? Is the building and the unit accessible for a walker or wheelchair?
- Can I install grab bars or other safety changes, and do I need permission first?
- How do I request repairs, and how quickly are they usually handled?
Investing the proceeds wisely
Selling a fully paid-for home in the GTA can put a large amount of money in your bank account, sometimes more than you have ever handled at once. This is exactly the moment to slow down.
- Park it safely first. There is no need to decide everything the week you close. Many people keep the money somewhere safe and accessible while they plan.
- See an independent advisor. A qualified financial advisor can help you think about income, taxes, government benefits and how long the money needs to last. Ask how they are paid.
- Check the tax picture. The principal residence exemption usually means no capital gains tax on the sale of your home, but investment income from the proceeds may affect your taxes and some income-tested benefits. An accountant can explain what applies to you.
- Update your will and powers of attorney. Your estate will look different without a house, so review your documents with your lawyer. See Power of Attorney and Selling for a Parent.
Frequently asked questions
Am I throwing money away by renting?
Not necessarily. Rent buys you a place to live without the costs, risks and work of ownership. Whether it makes sense depends on your full costs, your health, and how you plan to use the money from your sale.
Can my landlord make me move out?
A landlord can only end a tenancy for reasons allowed by law, and if you do not agree to leave, the landlord must apply to the LTB and receive an eviction order. If you receive a notice, contact the LTB or get legal advice before you act.
How Irina can help
Irina can help you understand what your home is likely to sell for, so you can compare renting and owning with real numbers, and can talk through the timing of a sale and a move. She is happy to have a relaxed, no-pressure conversation in English or Russian. Contact her whenever you are ready.
Related guides: Your Housing Options Compared · Moving Day and Settling In · Money Matters