Overcoming Challenges When Finding Your Rental Home as a Newcomer in Canada

We’re here to help with the information part.  

We’ve put together this detailed guide to share the information you need to secure your rental property, from the start of your house hunt through to when you grab the keys.  

Top 5 Challenges Newcomers Face When Finding a Rental 

Newcomers are likely to face many challenges when hunting for a rental home in Canada. But we’ve identified five of the top challenges we see (and that we’ve experienced ourselves). We’ll note them here, and we’ll refer to these throughout the article to help you overcome them.  

Lack of Canadian credit history. 

It’s quite common in many parts of Canada for your prospective landlord to ask to see a credit report. This can present a challenge for newcomers, who tend to have a limited credit history – or even none at all – in Canada.  

But here’s a pro tip: Your landlord doesn’t actually care about your credit score. What really matters to them is whether you have the financial means to pay rent on time. The credit report is only one way to show that you’ll be a reliable tenant.  

Difficulty securing local references. 

Most landlords or property managers will ask you to provide references. This can be challenging if your rental history is entirely from outside of Canada.  

Instead of just providing an out-of-Canada phone number, it’s a good idea to make it easier for your landlord. Ask your previous landlords to provide a written reference, in English, alongside email contact details to make it as convenient as possible for your prospective landlord in Canada to feel certain you’ll treat their home with respect.  

High demand and limited inventory. 

Canada is experiencing a housing shortage, so in many places, rental vacancy rates are very low and competition to secure rental housing is high. This can mean that many people are applying for a property, which makes it very important to submit a strong, compelling application.  

Luckily, you can put your skills as a newcomer to use here. You’ve likely recently submitted an application to Immigration, Refugees, and Citizenship Canada to come to Canada as a permanent or temporary resident. During that process, you probably had some practice thinking like an immigration officer to submit a strong application. Use those skills to think like a landlord!  

Unfamiliarity with renter’s rights and rental processes.  

Renting a home in Canada is likely not the same as renting in the country you lived in previously. Canada has its own processes, customs and rights for both landlords and tenants, and it’s definitely worth spending some time getting to know them.  

Note: Renter’s rights vary from province-to-province, so even if you’ve rented before in Ontario, your rights may be slightly different in British Columbia.  

Rental scams are a real risk.  

Canada’s police departments receive daily reports of rental scams. They’re an unfortunate part of Canada’s rental market, and they come at a significant cost to their victims. We previously covered how you can identify rental scams in Canada. Check out that guide to reduce your risks when searching for your next rental.   

Is It Hard to Rent in Canada?  

Finding and successfully applying for a rental home in Canada does come with some challenges. But with the right preparation and approach, you can rent your dream home in Canada.  

We’ve outlined the five key steps for finding a rental home in Canada. If you follow these steps carefully, you can overcome many of the challenges that come with renting. Here they are briefly:  

Step 1: Define your needs, including setting a budget and radius.  

Step 2: Start your search on Rentals.ca.  

Step 3: Prepare a standout application.  

Step 4: Tour properties and find a spot you like.  

Step 5: Submit your application and (hopefully) get accepted.  

Let’s dig into those steps in more detail.  

Work Out What You Need in a Rental Home 

Defining your needs is the start of your planning stage. Congratulations on taking the first step!  

When it comes to working out what you need from a rental property, there are a few things to consider:  

• List your must-haves: consider things like transit access, pet policies, bedroom and bathroom count, and size of the kitchen.  

• How much can you afford? While this varies from person-to-person, a rule of thumb is to spend at most 35% of your take home pay for your rent, utilities, and insurance. Whether that 35% suits your needs may vary, but we strongly encourage you to run the numbers at this point, since what you pay on housing will have an outsized impact on your financial security in Canada. You can learn more about how much to spend on rent.  

• Make a list of wants or a wish list too. This is a helpful psychological trick that gives you the freedom to dream about your dream home, while also encouraging you to separate actual needs from wants. This information is a powerful tool to keep things in perspective, especially in markets with high competition and/or high costs.   

Start Your Search on Rentals.ca 

Our partner Rentals.ca has tens of thousands of rental listings you can search – and powerful filters to help you find exactly what you need.  

With Rentals.ca, you can browse verified listings and filter by features such as size, parking, pet friendliness, bedrooms and bathrooms, amenities, utilities included, and more. Plus you can set alerts, so you’re first to know about new properties that meet your exact needs.  

Keen to review other rental listing platforms? Check out this detailed guide.  

Draft Your Standout Rental Application 

Remember that as a newcomer you possess a certain skill: the ability to prepare an application that pre-empts questions and concerns. You did this with IRCC when you applied to immigrate to Canada. And you’ll need to do it now, from the perspective of the landlord.  

Putting together a standout application means thinking from the landlord’s point of view. You can start your draft application at this point by gathering all the essential documents they expect, including proof of identity, proof of income, your credit report from Canada and your home country if you can find one), reference letters in English and/or French (as appropriate), and a cover letter providing details about your family, lifestyle, work stability, commitment to being a respectful tenant, and explaining away any concerns the landlord may have.  

Here are some quick tips to make your application stand out: 

1. Organize all papers neatly in a folder or digital file. Make it super easy to review. 
2. Clearly show consistent income or savings, and state exactly how you’ll pay rent on time (e.g., automatic transfer). This is especially important if you don’t have credit history in Canada or a secure/consistent job.  
3. Offer Extra Assurances: volunteer to set up pre-authorized payments, share your current bank statement, and note that you’ll secure tenant insurance before moving in. Mentioning these proactive steps builds trust. 

By covering documentation, personal background, and financial reliability, you’ll present a complete package that answers every landlord question before they ask it. 

Yes, that’s right – we suggest getting a draft application together before you start to tour potential homes. This is so you can move quickly if you find a property that meets your needs. It puts you in a better position to apply early, instead of lagging behind other possible applicants. 

Tour Potential Homes & Apply 

With your draft application ready, you’re ready to start scheduling in-person or virtual viewings. Your time is valuable, so be sure to prioritize listings with high quality photos or video walkthroughs so you don’t waste your time. That’s where platforms like Rentals.ca really shine, compared to some other marketplaces.  

That said, don’t rely totally on the photos provided. An in-person viewing can help you see the unit condition and get a feel for whether things are as you’d expect. It can also help reduce your risk of falling victim to a rental scam. A virtual viewing can still be helpful, but an in-person viewing is preferable if you can manage it.  

Then, if you’re interested, get the application finalized and submitted. Remember to check the application requirements and always adapt your application to meet their needs – like you would for a job application.   

Sign the Lease and Pay Deposits 

If you follow the steps above, we hope you’ll be able to land a rental home you love. Once you hear back from the landlord that your application has been accepted, there are still a few more steps you’ll need to navigate.  

At this point, you’ll want to make sure you know the security deposit laws in the province/territory. We can’t cover them here, but just search “damage deposit rules [province]” in your preferred search engine to find the relevant rules. Spending about thirty minutes researching and understanding the rules can save you a lot of money in the long run, so it’s a solid investment. 

At this point, you’ll also want to read the lease to review key terms and rules, confirm the move-in date, rent due dates, and what utilities are included. You may also need to arrange for tenant insurance and send it to your landlord at this stage.  

Beyond this, we also encourage you to try to build a positive tenant-landlord relationship. We don’t mean you need to be friends – just reasonable and communicative if issues arise. It’s really helpful if you report maintenance issues right away, set up that pre-authorized transfer, and just generally approach the lease with a co-operative spirit.  

Why? Well, at the very least you’ll likely want to build up a bank of references in Canada for your future homes.  

Find Your Next Rental Home with Rentals.ca 

Start your search today on Rentals.ca to find your dream home using a platform that’s easy to use and home to tens of thousands of listings, as well as expert advice for renters. 

Whether you’re starting your search or ready to sign a lease, Rentals.ca is your partner.