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10 Common Mistakes Landlords Make in Canada (and How to Avoid Them)

10 Common Mistakes Landlords Make in Canada (and How to Avoid Them)

Being a landlord can be rewarding — but it’s easy to fall into traps that cost time, money, or even lead to legal headaches. Whether you’re new to renting or have managed properties for years, knowing the common pitfalls (and how to avoid them) will help you protect your investment and keep your tenants happy.

At GTA Landlord, we help property owners across the Greater Toronto Area navigate everything from tenant placement and lease management to full-service property management, ensuring your rental business runs smoothly and profitably.

Here are the 10 most common mistakes landlords make in Canada — and how to avoid them.


1. Poor Tenant Screening

Mistake:
Skipping background checks, failing to verify income, or not contacting past landlords can result in unreliable tenants or payment issues.

How to Avoid It:

  • Use a standardized rental application

  • Verify employment and income sources

  • Review credit reports and request landlord references

Pro Tip: GTA Landlord offers a comprehensive Tenant Screening Program that includes credit, employment, and background verification — helping you secure reliable tenants with confidence.


2. Using Verbal Agreements or Weak Written Leases

Mistake:
Relying on verbal promises or incomplete lease agreements often leads to confusion and disputes later on.

How to Avoid It:

  • Always use a detailed written lease

  • Follow your province’s standard lease template (e.g. Ontario Standard Lease)

  • Include clear rules about pets, smoking, maintenance, and notice periods

At GTA Landlord, we prepare compliant, legally sound leases customized to each property — protecting you and your investment.


3. Ignoring Landlord-Tenant Laws

Mistake:
Not knowing the rules around rent increases, evictions, or maintenance obligations can lead to legal trouble.

How to Avoid It:

  • Stay informed about your province’s Residential Tenancies Act (RTA)

  • Consult reliable landlord resources

  • Seek advice before issuing notices or evictions

Our experts stay updated on Ontario’s landlord-tenant laws to ensure your rentals remain compliant and protected.


4. Delaying or Neglecting Maintenance

Mistake:
Ignoring small repairs or safety issues can turn minor fixes into costly renovations.

How to Avoid It:

  • Schedule regular inspections

  • Respond quickly to maintenance requests

  • Keep records of all repairs with photos and receipts

GTA Landlord coordinates reliable contractors and maintenance services, so your property stays in top condition year-round.


5. Poor Communication

Mistake:
Lack of timely or professional communication can damage the landlord-tenant relationship.

How to Avoid It:

  • Keep all correspondence in writing

  • Set clear expectations for communication

  • Respond promptly to tenant concerns

Our team handles all tenant inquiries on your behalf, ensuring smooth, respectful communication that keeps tenants satisfied.


6. Financial Mis-Planning

Mistake:
Many landlords underestimate expenses or fail to plan for vacancies and unexpected costs.

How to Avoid It:

  • Maintain an emergency fund

  • Track rental income and expenses closely

  • Budget for property taxes, insurance, and upkeep

With GTA Landlord’s management services, you get detailed financial reporting and expense tracking for full transparency.


7. Mishandling Security Deposits

Mistake:
Withholding or delaying deposit returns without justification can lead to tenant disputes or legal claims.

How to Avoid It:

  • Know what deductions are legally allowed

  • Document the property condition before and after tenancy

  • Return deposits promptly

Our process ensures all deposits are handled legally and documented properly to protect your rights as a landlord.


8. Illegal or Discriminatory Practices

Mistake:
Asking questions about race, family status, or religion during screening violates human rights laws.

How to Avoid It:

  • Review the Ontario Human Rights Code

  • Focus on rental history, income, and creditworthiness — not personal details

GTA Landlord’s screening procedures are fully compliant with Canadian privacy and human rights standards.


9. Improper Eviction Procedures

Mistake:
Evicting a tenant without proper legal notice or cause can backfire.

How to Avoid It:

  • Use the correct LTB form (e.g., N4, N5, N12, etc.)

  • Provide the required notice period

  • Keep thorough records

We assist landlords through the full eviction process, ensuring every step follows Ontario’s Landlord and Tenant Board guidelines.


10. Poor Record Keeping

Mistake:
Failing to document leases, payments, or maintenance records leaves landlords exposed in disputes.

How to Avoid It:

  • Keep organized digital records

  • Save all communications and receipts

  • Photograph the unit before and after each tenancy

Our management platform keeps your documentation secure and accessible anytime you need it.


Final Thoughts

Landlording in Canada isn’t just about collecting rent — it’s about managing a professional, compliant, and well-structured business. Avoiding these mistakes can save you legal trouble, reduce turnover, and improve profitability.

If you’re ready to simplify your rental experience, visit www.gtalandlord.ca to learn more about our Tenant Placement, Full-Service Property Management, and Landlord Support Programs — trusted by property owners across the Greater Toronto Area.


Frequently Asked Questions

1. What not to say to your landlord?
Avoid saying anything that implies a lease violation (e.g., unauthorized sublets or repairs). Keep communication factual and professional.

2. What’s the most you can sue your landlord for in Ontario?
As of October 1, 2025, the Landlord and Tenant Board’s limit increased to $50,000. Claims above that may go to Small Claims Court.

3. What is a bad tenant list in Canada?
Unofficial “bad tenant lists” may violate privacy laws. Use regulated tenant bureaus or credit agencies for verified rental histories.

4. What’s the most common action taken against tenants who breach their lease?
Landlords typically issue a notice of breach (e.g. N4, N5, or N12) before applying for eviction through the LTB.

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