The moment you get the keys, the instinct is to list the unit immediately. But before you do, there’s a critical checklist to work through. Skip the HST rebate decision: up to $24,000 lost. Skip the insurance switch: a kitchen fire with no coverage. Here’s how to set yourself up correctly from day one.
⚠️ First Thing First
For a new condo: confirm whether you’re at Occupancy or Registration stage. Title registration can lag weeks to months behind occupancy. Before registration, you typically cannot sign a valid lease — confirm with your real estate lawyer before listing.
📋 Week 1: Legal & Financial Foundations
1
Confirm HST Rebate Strategy (Up to $24,000 at Stake)
Ontario’s New Housing Rebate has two streams: owner-occupied (higher amount) and rental investor (lower). If you claimed owner-occupancy at purchase but immediately rent the unit, CRA can require you to repay the difference — up to approximately $24,000. Speak to a tax lawyer or CPA before taking any action. This is not a decision to make on instinct.
2
Switch to Landlord Insurance (Non-Negotiable)
Standard homeowner’s insurance does NOT cover: tenant-caused damage, lost rental income during a claim, or liability for tenant injuries. You must switch to Landlord Insurance before the first tenant moves in.
Also require your tenant to purchase Tenant Insurance (covers their belongings and personal liability). Scenario: tenant causes a kitchen fire, $30,000 damage. Without tenant insurance, recovery from the tenant is difficult. Both policies protect both parties.
📋 Week 2: Utility & Service Accounts
3
Set Up or Transfer Utility Accounts
Hydro (electricity): Open your account or arrange transfer to tenant — clarify who pays in the lease
Natural gas (Enbridge): Transfer or set up new account; confirm billing responsibility
Water: Confirm if included in property tax or billed separately by the municipality
Sub-metering: If the condo uses a sub-metering company (Wyse, Enercare, etc.), contact them to initiate account setup before occupancy
📋 Weeks 3–4: Rent Collection & Tax Setup
4
Build Your Rent Collection System
Dedicated bank account: All rental income and expenses flow through one account. Tax reporting is cleaner and CRA audits are less stressful.
Pre-authorized debit (PAD): Set up automatic monthly transfers from tenant’s account to eliminate late rent friction.
T776 form (Annual): Report rental income and claim deductions (mortgage interest, property tax, insurance, repairs, advertising) by April 30 each year. Keep all receipts — they are deductible.
5
The Details That Get Overlooked
Notify CRA that you have rental income — ensure your tax profile is updated
Condo tenant registration: Most condo buildings require the landlord to register tenants with property management for fob access and communication
Key inventory: Document every key, fob, and parking pass transferred — in writing, signed by both parties
Move-in photos: Photograph every room before the tenant moves in. This protects both parties when the lease ends.
💡 Arthur’s Perspective
Being a landlord is running a small business. From day one, build systems: separate bank account, photo documentation, written communication trails. These habits take 30 minutes to establish and will protect you in LTB disputes three years later when a tenant claims damages you know aren’t yours.
AZ
Arthur Zhao
Broker · FRI · ABR · SRS · MCNE · E-PRO | AZ Real Estate Partners
📞 416-888-6161 | arthurzhao.realtor
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