Two Cities — Renting in Calgary and Toronto
Toronto is a big city. A metropolis. We all know that, but what is it missing that another fairly large city in Canada, Calgary, can offer for landlords and tenants? Beyond the obvious of the Rocky Mountains and breathtaking scenery across Alberta, Calgary has been fueled by the oil industry over the last few decades and has now come to a bit of a hurdle as it deals with the drop in oil prices. Toronto, on the other hand, is one of the fastest growing cities in North America. This has resulted in two vastly different rental markets worth exploring.
Heads Up Landlords
If you’re from Alberta and thinking of investing in a rental property in Toronto, you’ll want to keep in mind some fees that are not applicable in Ontario. For example, although you’re required to provide up to 1-month’s rent in “deposits” in both provinces, in Alberta, landlords can apply this deposit to fix any damages beyond normal wear and tear or cleaning, while in Ontario, landlords can not to damages. Along with that, landlords in Alberta are allowed to charge a non-refundable pet fee — or even “pet rent” — whereas, in Ontario you are not allowed to charge the same. You also are not able to evict a tenant if they do decide to adopt a pet during the lease.
Another difference between the renting processes in Alberta and Ontario is that Alberta actually requires landlords and tenants to do a move-in and move-out inspection report. In Ontario, it’s recommended, but not mandatory, and that can make things a little more difficult once the lease has started and problems start to arise. Inspection reports help both landlords and tenants by making both parties fully aware of the condition of the unit. This gives the tenants a comfort of mind that the home they are about to live in is safe and also helps the landlords because they can catch any issues with the property early and save significantly in time and money later on.
Rent control is always a topic of discussion in both provinces. The regulations, however, are quite different. Simply put, there is no limit on the amount by which the landlord may increase the rent in Alberta, while you can find many units in Toronto that are effectively rent-controlled as they were occupied for the first time for residential purposes before November 15th, 2018. This rule was, however, much needed for residents in a city like Toronto where the rental market had reached unthinkable highs at a certain point before the pandemic.
How About Tenants?
If you’re a tenant looking to move between the two cities we’ve mentioned, you’ll immediately notice a difference when you start searching for places to rent. In Ontario, Padmapper.ca and Kijiji are two of the most popular internet listing websites, whereas in Alberta RentFaster.ca is recommended. Facebook Marketplace is also an ever so growing presence globally in the rental space and Calgary and Toronto are no exception to that.
If you have or are currently living in Toronto, you’ll know what it feels like to get on the 401 on a Tuesday during rush hour. It’s far from the greatest experience. Toronto, however, has developed its transit system much more than Calgary and therefore the need to use a car is less than it is in Calgary. It may come down to simply population size, but the way the highways are designed in Calgary also helps in getting to each part of the city, whereas in Toronto, there are a handful of major highways connecting a city that is much larger and densely populated.
It would be unfair to compare the two cities without comparing their respective geography and the activities you can do in each. Calgary is close to some of the most beautiful scenery in Canada, with Banff National Park, Jasper, and Yoho just a few hours drive away. Toronto also has its own unique scenery, but it is much “flatter” and the most popular “mountain”, Blue Mountain, may feel like a joke for Calgarians. There is no shortage of parklands near either city though, and you’ll always find somewhere worth exploring!
Finally, the most important difference between Calgary and Toronto for tenants is the cost of living, which is generally much lower in Calgary. The median rent price in Calgary for a 1-bedroom apartment is $1,174 as of October, whereas in Toronto, it is $1,800 — and that’s after a 10% drop year-over-year. You also only need to pay a 5% sales tax in Calgary as you don’t need to pay a provincial sales tax, whereas in Ontario, it’s 13% — this can add up!
There are obviously many differences between Calgary and Toronto and it’s not just in the rental market. They do, however, share a few things in common, namely that both of their respective provinces are governed by their own Residential Tenancies Act. Landlords and tenants should read through that thoroughly before signing a lease, so you know all your rights. Also, if you’re sick of the weather in one of the cities and that is a factor in your decision for your next home, well, both cities are pretty darn cold. In the winter, Calgary does get a bit more snow, but hey, we’re still in Canada, and it’s still cold here in Toronto!
