Discover the Benefits of Both Options for Your Real Estate Investment in the GTA, Hamilton and Simcoe County
TL;DR
- Long-term tenants provide stable, predictable income with less turnover and day-to-day management.
- Short-term rentals offer flexibility to use the property yourself and can earn more per night.
- Toronto only allows short-term rentals in a principal residence with city registration, and condos can restrict them.
- Long-term rentals follow Ontario’s Residential Tenancies Act, including rent increase limits for most older units.
Let’s dive into the world of tenants – the ones who call your bungalow, condo, townhouse, or cottage home. Imagine finding a sweet couple or a small family who absolutely adore your property. They sign a lease for a year or even longer, and just like that, you’ve got a reliable income source. Long-term tenants bring stability, meaning you don’t have to stress about finding new tenants all the time or going through the whole process again and again.
Now, let’s flip the coin to short-term tenants. Imagine having the freedom to use your property whenever you want during the year. Want to spend a weekend in your cozy cottage? You’re all set! Short-term rentals can let you enjoy your place while earning money when you’re not there, and in high-demand areas they may bring in more per night. But the rules matter: in Toronto, short-term rentals are only allowed in your principal residence with city registration, many condo corporations restrict them, and other municipalities have their own licensing rules.
Long-term rentals come with their own rules too. In Ontario, they’re governed by the Residential Tenancies Act: you’ll use the standard lease, rent increases are generally limited to the provincial guideline once every 12 months with 90 days’ written notice (units first occupied after November 15, 2018 are exempt from the guideline), and disputes go to the Landlord and Tenant Board, which has had long wait times recently. Short-term rentals involve more turnover, cleaning and guest management, so factor in your time or the cost of hiring help.
Financing matters too. Talk to a licensed mortgage professional about how rental income is treated when you qualify, and let your lender and insurer know how the property will be used.
At Condo Connect, we know every property owner is different. Whether you prefer the stability of long-term tenants or the flexibility of short-term rentals, the right choice depends on your property, your location’s rules and your goals.
To sum it all up – long-term tenants give you stability and predictable income, while short-term rentals offer flexibility and potentially higher earnings, but with more work and stricter rules. Whatever you choose, know the regulations before you list.
Looking for an investment property? Browse condos for sale, set up listing alerts, or talk to our condo specialists about buildings that suit your rental plans.
Frequently asked questions
Can I rent my Toronto condo on Airbnb?
Only if it’s your principal residence and you’ve registered with the City of Toronto, and only if your condo corporation allows it. Many condo declarations and rules restrict or prohibit short-term rentals. An investment condo you don’t live in can’t legally be used as a short-term rental in Toronto.
How much can I raise the rent in Ontario?
For most units, increases are limited to the provincial guideline: 2.1% for 2026 and 1.9% for 2027. You can raise rent only once every 12 months with 90 days’ written notice on the proper Landlord and Tenant Board form. Units first occupied after November 15, 2018 are exempt from the guideline.
Is long-term or short-term renting more profitable?
Short-term rentals can earn more per night but come with higher vacancy, cleaning, furnishing and management costs, plus stricter regulation. Long-term rentals usually provide steadier income with less work. The better choice depends on your location’s rules, your time and your property.
What is the Landlord and Tenant Board?
The Landlord and Tenant Board is a provincial tribunal, part of Tribunals Ontario, that resolves disputes between residential landlords and tenants, such as unpaid rent, evictions and maintenance issues. Wait times for hearings have been long in recent years, so careful tenant screening matters.