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Toronto’s Newcomers Struggle with Upfront Rent Demands—What You Need to Know (video)

Lorena Portugal’s Experience

Lorena Portugal, who moved from Peru to Toronto with her boyfriend 10 months ago, initially paid four months’ rent upfront for her small one-bedroom apartment in downtown Toronto, costing roughly $2,300 a month. She stated that paying such a large sum upfront shook her financial stability, but it was a necessary step to secure housing. Friends had warned her of landlords suggesting even six to twelve months of upfront rent.

Widespread Practice Among Newcomers

Rafhaela Cruz, another newcomer, also encountered similar demands. Several real estate agents told her that lacking a Canadian credit score and job made paying several months’ rent upfront necessary. CBC News interviewed multiple newcomers who confirmed this practice as a means to secure housing in Toronto’s competitive and expensive market.

In Ontario, it is illegal for landlords to ask for more than the first and last month’s rent upfront. However, there is a legal gray area where tenants can offer to pay multiple months in advance. Some landlords justify this practice to protect themselves against potential non-payment of rent, but this disproportionately affects vulnerable groups, such as refugee claimants, who may already be in precarious mental health and financial conditions.

Limited Recourse for Tenants

Renters in Ontario can file complaints with the province’s landlord and tenant board. However, there is a significant backlog, leading to months-long waits for hearings and decisions. As a result, many tenants opt to pay the upfront costs to secure housing immediately, despite the financial strain it imposes.

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