Renting in Canada as an American: Everything you need to know

Alexis Konovodoff

For many Americans looking to relocate, Canada is a natural choice. The quality of life and culture are similar, which makes for a smooth transition.

Housing costs in Canada can be steep, but they're generally on par with what you'll find in the US. You can expect to pay around 1,857 USD for a 1-bedroom apartment in a major city and about 2,133 USD for a 3-bedroom unit.¹

The rental process will feel familiar to the US. But there are still important differences that you should keep in mind, which we'll explain in this guide. We’ll also introduce Wise, an easy way to send money to Canada and save on fees, even for large payments like rent.

Learn more about Wise


Table of contents

Can an American rent property in Canada?

Yes, Americans can absolutely rent property in Canada, but you must be in legal status. When renting long-term, you'll need to have a valid work visa, a student permit or permanent residency.

Landlords will likely ask for extra paperwork to verify that you're financially stable and can pay the rent. They may also require a guarantor (someone who agrees to pay if you can't) to co-sign the lease. This person usually needs to be a Canadian citizen or resident.

Many landlords will also want to run a credit check, but as a newcomer to Canada, you won't have any Canadian credit history. In this case, you may be able to use a credit report from your US bank.

🚨 If you don't have a long-term visa or Canadian residency, you'll only be able to rent short-term accommodations, like vacation rentals on Airbnb. For anything over 6 months, you'll need a proper legal status.²

How much is rent in Canada?

The cost of living in Canada is pretty high, but you get what you pay for. Apartments and houses typically have high-quality construction and good amenities.

You can expect to pay around 1,857 USD per month for a 1-bedroom apartment in city centers. If you're willing to live in a less central location, average costs of a 1-bed drop to 1,185 USD per month

But ultimately, how much you pay depends on the location you choose. Here's a breakdown of the average rent in Canada across major cities.

City1-bedroom (city center)3-bedroom (city center)
Quebec City³898 USD1,395 USD
Vancouver⁴2,000 USD3,646 USD
Toronto⁵1,777 USD2,992 USD
Montreal⁶1,181 USD2,089 USD
Ottawa⁷1,407 USD2,226 USD

Vancouver stands out as the most expensive city for renters, with downtown apartments costing nearly twice what you'd pay in Quebec, the most affordable option on this list.

The Canadian government recommends that your rent and household-related expenses stay under 35% of your income.⁸ For example, if you earn 5,000 USD monthly before taxes, your housing costs should be under 1,750 USD per month.

What additional costs will apply?

As a tenant, you'll likely need to pay for utilities and cover the internet bill. Most landlords also require a security deposit (also called last month's rent) before you move in. By law, this deposit can't exceed 1 month's rent.⁸

ExpenseTypical cost
Security deposit1 month's rent⁸
Utilities145 USD¹
Internet60 USD¹

You may also want to get renters' insurance to protect your belongings and provide liability coverage. It usually costs between 20 and 50 USD monthly.⁹

What documents do I need to rent in Canada?

To start renting an apartment in Canada, you'll need to provide documents to prove your identity and reliability as a tenant. Here's what landlords typically request:

  • Valid passport
  • Visa or permanent residency documentation
  • Proof of income (pay stubs, employment letter or bank statements)
  • Credit report
  • References from previous landlords
  • Guarantor information (if required)

It's also a good idea to open a bank account in Canada to make it easier to pay your rent and build your credit history.

Renting abroad? Send money the hassle-free way with Wise

Wise offers you a quick, secure and transparent way of sending money to Canada. You get the mid-market exchange rate for your payments and see how much it’s charged for the transfer before sending the money from your bank.

With the Wise Account you can also hold 40+ currencies, spend money in 150+ countries, and receive like a local in 9 different currencies.

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Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

Types of property to rent in Canada


Apartments

This is the most common rental option in Canadian cities, and apartments come in all sizes and price ranges. You'll find everything from affordable studios to high-end units with city views.

Some apartment buildings might have amenities like on-site laundry and parking.

Condominiums

Condos are similar to apartments but they often come with higher-end finishes. Expect to pay more for a condo than a standard apartment, but you'll usually get more modern appliances.

Houses

If you want to live in the suburbs, you'll probably be renting a single-family home.

A house offers more space and privacy but you'll likely have extra responsibilities, such as yard maintenance and snow removal. Heating and cooling houses also costs more than apartments, so expect higher utility bills than the average.

Basement apartments

Basement apartments (or "secondary suites") are common in major cities. They’re separate units in single-family homes, usually with their own entrance. They don't have a lot of natural light, but it's a more affordable option for renting in Canada.

Townhouses

Townhouses are multi-level homes that share walls with neighboring units. They have more space than apartments, and they're typically more affordable than houses.

You can usually find townhouses in suburban areas.

Shared housing

If you're on a budget, you can share an apartment or house with roommates to reduce costs. You'll typically sign onto a lease with others or take over someone's portion of an existing lease. You'll be responsible for your portion of the rent and utilities.

How do I find a property to rent in Canada?

Finding a rental property in Canada isn't too different from the US. The main ways to search for housing are using a real estate agent and browsing online property portals. You may have some luck using Facebook groups, too.

Real estate agents

If you're looking for a high-end rental or moving to a competitive market like Vancouver or Toronto, an agent can be helpful. They'll show your different properties, handle the paperwork and guide you through the application process.

Online property portals

Many real estate websites let you filter by price, location and amenities to find the best options for you. Popular options include:

Facebook groups

Facebook groups are a more direct way to find rental properties in Canada. Landlords sometimes post in them, but Facebook is especially helpful for finding roommates or short-term sublets. You can also look up city-specific groups.

How to avoid scams when renting in Canada

The risk of rental scams is particularly high in big cities like Toronto and Vancouver. Red flags include:

  • being asked to send money before you see the property
  • rates well below market value
  • landlords who claim they're out of the country and can't show the unit
  • unusual payment methods like cryptocurrency
  • landlords suggesting you do a verbal agreement instead of a legitimate lease

If something seems rushed, strange or too good to be true, it probably isn't legitimate.

Things to consider when looking for a place to rent

It's important to prepare thoughtful questions when searching for a place to rent in Canada. It'll save you time and money in the long run.

Ask about:

  • Heating type and average utility costs (heating costs in winter can be high)
  • Whether snow removal and lawn maintenance are included in the cost
  • Parking arrangements
  • How close the property is to the subway, grocery stores and other important amenities
  • Air conditioning (not all Canadian rentals have it)
  • Bike storage (if you're going to use one to commute in the summer months)
  • Pet policy
  • Subletting rules
  • Noise levels

Don't be afraid to ask questions. A good landlord will appreciate your thoroughness because they also want to make sure that you're the right fit for the property.

How to apply for a property to rent in Canada

The rental application process in Canada is pretty straightforward but can be competitive in major cities. The process will look slightly different depending on whether you're applying through a property agency or dealing directly with the landlord.

Property agencies

Professional property management companies usually have a formal application process.

  1. Fill out the rental application with your personal information, rental history and employment details
  2. Submit documents such as proof of income, credit report, visa/residency card, landlord references and any other paperwork the agency requests
  3. Wait for approval
  4. Once approved, sign the lease, pay the first month's rent and set up utilities
  5. Move into the property

The process typically takes a few business days. This is the most common way to apply for a property to rent in Canada.

Private landlords

If you're renting directly from the landlord, the process is similar but can be a little more flexible.

You might be able to negotiate terms more easily and personally explain things such as not having a Canadian credit report. But make sure to verify that the landlord is legitimate to avoid scams.

move-money

Tenancy contracts in Canada

When you sign a lease, you enter into a formal contract where you agree to pay rent in exchange for the right to live in the rental unit. It's important to read through the lease before signing because it outlines important rules about how you can - and can't - use the property.

Your lease should include:

  • Names and contact information for both landlord and tenant(s)
  • Property address
  • Monthly rent amount and what it includes
  • When rent is due and accepted payment methods
  • Security deposit amount (if required) and terms
  • Length of the lease term
  • Maintenance responsibilities (what repairs you handle vs. the landlord)
  • Notice period required before moving out
  • Rules about subletting or having roommates
  • When and how rent can be increased
  • Specific restrictions (pets, smoking, etc.)
  • When and how the landlord can enter the unit
  • Emergency contact information

There are two main types of rental agreements in Canada, a fixed-term lease and a month-to-month lease.

A fixed-term lease is usually for 1 year.¹⁰ A month-to-month lease is more flexible - it automatically renews until either you or your landlord decides to end it by giving proper notice.

If you're renting with roommates, the way you sign your lease matters.

If you and your roommates sign the same lease, you're each responsible for the full rent amount. This means if your roommate doesn't pay their share, you're legally responsible for covering it.

That said, some landlords offer separate leases for each tenant. In this case, you're only responsible for your portion of the rent.

Tenant laws and rights in Canada

Each province in Canada has its own set of rental laws and regulations, but tenants generally have strong legal protections.

As a tenant, you typically have the right to:

  • Live in a safe, well-maintained property
  • Have reasonable privacy
  • Have basic utilities (heat, electricity and water) without disruption
  • Request necessary repairs
  • Stay in your unit unless there's a valid reason for eviction

Contact your city's Consumer Affairs office for more information about your rights as a tenant.

What’s the best city to rent in Canada?

There's no one best city to rent in Canada, but many people decide to live in Toronto, Vancouver, Montreal, Ottawa or Quebec.

  • Toronto: Canada's largest city comes with high rents, endless opportunities and diverse neighborhoods with excellent public transit
  • Vancouver: Vancouver has a mild climate and lots of nature, but the cost of living is pretty high
  • Montreal: Montreal has more affordable rent prices than cities like Toronto and Vancouver and almost everyone is bilingual in English and French
  • Ottawa: Canada's capital is great for families and has easy access to nature
  • Quebec: Quebec has the most affordable rent of major cities and the strongest French-Canadian culture
💡 Considering buying instead of renting? Learn more about buying property in Canada as an American in our full guide.

Canada has strong tenant protections and high-quality housing, but renting in major cities can be expensive.

The process is similar to what you can expect in the US, so the application process should be pretty straightforward as long as you're financially stable and have all of the necessary documents.

When it’s time to pay rent, use Wise for high-speed, low-fee transfers to Canada with no exchange rate markups.

Sources

  1. Numbeo - Cost of living in Canada
  2. Government of Canada - How long can I stay in Canada as a visitor?
  3. Numbeo - Quebec
  4. Numbeo - Vancouver
  5. Numbeo - Toronto
  6. Numbeo - Motreal
  7. Numbeo - Ottawa
  8. Government of Canada - Renting an apartment or house
  9. Ratehub - Tenant insurance
  10. Paragon Living - Understanding rental agreements in Canada

Sources checked 11.18.2024


*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.

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