A First Time Landlord's Guide to Renting Out a Markham Home Legally
A First Time Landlord's Guide to Renting Out a Markham Home Legally
Renting out your home can help you hold a property for the long term. It also comes with legal duties. Here is what every new landlord in Markham should know before the first tenant moves in.
Neeraj Moolchandani is a top real estate agent in Markham, Ontario.
The Short Answer
Most residential tenancies in Ontario must use the provincial Standard Lease. Landlords may collect a rent deposit of no more than one month's rent, plus a refundable key deposit, and must pay interest on the rent deposit each year. Rent can rise once every 12 months with 90 days written notice. For 2026, the guideline is 2.1 percent, though most units first occupied as residential after November 15, 2018 are exempt. Landlords must keep the home in good repair, give 24 hours written notice before most entries, and carry landlord insurance. In October 2026, average Markham rents were about $2,347 for a two bedroom, according to Zumper.
Neeraj works with many Markham owners who choose to keep a home and rent it out, as part of Kaizen Real Estate Team, one of the teams Markham homeowners trust for honest advice. Doing it right from day one protects you and your tenant.
What Markham Homes Rent For
| Unit Size | Average Rent | Change From Last Year |
|---|---|---|
| One bedroom | $1,924 | Down about 1% |
| Two bedroom | $2,347 | Up about 2% |
| Three bedroom | $2,991 | About flat |
| Four bedroom | $3,550 | Up about 4% |
Source: Zumper Markham rent research, October 2026. Rents vary by home type, size, condition, and location.
Before You List for Rent
- Tell your lender. Some mortgages have rules about renting.
- Change your insurance. A homeowner policy usually does not cover a rented home. You need a landlord policy.
- Check condo rules if the home is in a condominium.
- Renting part of your house? A basement apartment or second unit must meet building and fire rules and be registered with the City of Markham. See our basement apartment guide.
- Plan for taxes. Rental income is taxable. Speak to an accountant.
Thinking about renting out your Markham home? Neeraj can help you weigh renting against selling. Call or text Neeraj at (647) 370 8885.
The Lease and Deposits
- Use the Standard Lease. Most residential tenancies in Ontario must use the provincial Standard Lease form.
- Rent deposit. You may collect a rent deposit of no more than one month's rent, applied to the last month. You must pay the tenant interest on it each year at the guideline rate.
- Key deposit. Allowed if refundable and no more than the cost of replacement.
- No damage deposits. Landlords cannot collect security or damage deposits in Ontario.
- Put extras in writing. Utilities, parking, and who handles lawn care and snow should all be clear.
Screening Fairly
Good screening protects both sides. Ask for an application, consent for a credit check, employment and income details, and references from past landlords. Apply the same standards to every applicant. The Ontario Human Rights Code prohibits discrimination on protected grounds, such as race, family status, disability, or receiving public assistance.
Rent Increases
- Rent can rise only once every 12 months
- You must give at least 90 days written notice on the official form
- For 2026, the rent increase guideline is 2.1 percent
- Most units first occupied as residential after November 15, 2018 are exempt from the guideline, but the notice rules still apply
Want a rent estimate for your home? Call or text Neeraj at (647) 370 8885.
Maintenance, Entry and Ending a Tenancy
Landlords must keep the home in good repair and meet health, safety, and maintenance standards. In most cases you must give the tenant at least 24 hours written notice before entering, with the reason and a time between 8 a.m. and 8 p.m.
A tenancy can only end for reasons allowed under Ontario's Residential Tenancies Act, using the correct notice and, if needed, the Landlord and Tenant Board. Changes that took effect on September 21, 2026 include a 7 day notice period for unpaid rent, and no one month compensation payment when a landlord gives at least 120 days notice to end a tenancy for their own use. Rules change, so check with the Landlord and Tenant Board or a paralegal before you act.
Rent or Sell?
Renting can make sense if the numbers work and you want to hold for the long term. Selling may be better if carrying costs are high or you need the equity for your next home. See our guide to investing in Markham real estate for how to calculate rental yield.
Planning your next move and keeping this one? Let us talk it through. Call or text Neeraj at (647) 370 8885.
Related Markham Guides
Landlord Questions, Answered
Do I have to use the Ontario Standard Lease?
Most residential tenancies in Ontario must use the provincial Standard Lease form. There are some exceptions, such as certain care homes and some social housing.
What deposits can an Ontario landlord collect?
A landlord may collect a rent deposit of no more than one month's rent and a refundable key deposit no greater than the replacement cost. Damage deposits are not allowed. Interest must be paid on the rent deposit each year.
How much can I raise the rent in Ontario in 2026?
The 2026 rent increase guideline is 2.1 percent. Most units first occupied as residential after November 15, 2018 are exempt, but all increases require 90 days written notice and can happen only once every 12 months.
How much rent can I get for a house in Markham?
According to Zumper in October 2026, average Markham rents were about $2,991 for three bedrooms and $3,550 for four bedrooms. Actual rent depends on size, condition, and location.
Do I need special insurance to rent out my home?
Yes. A standard homeowner policy usually does not cover a rented property. Speak to your insurer about a landlord policy before your tenant moves in.
Keep It, Rent It, or Sell It?
Neeraj will help you compare the numbers honestly, so you choose the option that fits your goals.
Call or text (647) 370 8885 · info@kaizenrealestate.ca
Kaizen Real Estate Team, eXp Realty, Brokerage · 9763 Markham Rd, Markham, ON L6E 1A4
Rent data: Zumper Markham rent research, October 2026. Tenancy rules reflect Ontario's Residential Tenancies Act as of October 2026 and are general information only, not legal advice. This article is general information, not legal, tax, mortgage, or financial advice. Market commentary describes current conditions and is not a promise of future prices. Information is believed accurate but should be independently verified. Not intended to solicit properties currently under contract.
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