CHAPTER 3: ALL ABOUT RENTAL REVENUE

As rental rates can vary significantly across regions – even within a city – it is hard to accurately determine what your revenues will be. Your revenue will really depend on the market conditions at the time you are listing your rental property. We suggest you visit our website to get up-to-date market data and to view current rental listings for comparisons, so you can price your rental property accordingly.

Rental Rates for Toronto (Average Rent Q1 2018)

For illustrative purposes, we’ve provided data from the first quarter of 2018 to give you a rough estimate.

Bachelor – $1,657 per month

1 Bedroom – $1,995 per month

2 Bedroom – $2,653 per month

3 Bedroom – $3,344 per month

Disclaimer: these rates are averages based on TREB data as of Q1 2018 and are for illustrative purposes only. Rent pricing is based on the average cost of an apartment per category type (bachelor, 1 bedroom, etc.). Rent will vary depending on the property type, size, location, and other features.

We encourage you to visit our website at www.NestandCastle.com to view up-to-date statistics, including average rental rates, neighbourhood values and trends, and other valuable demographic data.

Reporting rental income

When reporting rental income on your tax return, ensure you report your gross rental income minus operating expenses. Operating expenses include things like the interest on your mortgage, condominium fees, property taxes, and any costs associated with repair and maintenance. Ensure you keep appropriate documentation for at least six (6) years, as the Canada Revenue Agency has the right to reassess and audit your tax returns during this time period.

Note: We always strongly recommend consulting a tax professional when becoming a landlord. Your tax professional is able to give you expert advice based on your unique financial situation.