The Truth about Renting in Canada: Debunking Common Rental Myths    

Renting in Canada is often surrounded by all kinds of myths and assumptions. Many people hear stories about what renting is like, but a lot of that information is outdated or simply incorrect. The truth is, most of these common beliefs don’t reflect how renting actually works today. With clear rules, tenant protections, and flexible living options, renting is often a positive experience that is easily navigated. In this blog, we’ll break down popular rental myths and explain why they’re mostly wrong.

Why rental myths still exist in 2026

Even in 2026, rental myths are still around, and it’s easy to see why. People often share stories based on past experiences, advice from friends, or information that simply hasn’t been corrected. With rules that vary by province, things can sound more complicated than they really are. The good news? Once you look at the facts, renting in Canada is often much clearer and more reassuring than the rumours suggest.

Myth #1 – You always need a fixed-term lease

Many renters believe a fixed-term lease is the only option, but that’s not always the case. In many provinces, month-to-month agreements are common and perfectly valid. These flexible arrangements can offer more freedom while still providing clear rights and protections for tenants.

Month-to-month rentals are legal across Canada

Month-to-month rentals are legal in every province, though specific rules vary. They offer flexibility for tenants who may need to move while still providing the same basic rights and protections as fixed-term leases.

Verbal rental agreements can still be binding

In many provinces, verbal rental agreements can be legally binding. Even without written paperwork, agreed terms like rent amount and move-in date may still be enforceable under provincial tenancy laws.

Pros and risks of flexible lease terms in 2026

Flexible leases offer freedom and convenience, especially for changing lifestyles. However, they may also allow shorter notice periods for ending tenancies, so it’s important to understand local rules before choosing this option.

Myth #2 – Rent automatically increases every year

A lot of renters assume their rent will go up every single year no matter what. That’s not exactly true. In many provinces, rent increases are controlled by law. Landlords usually have to follow strict yearly limits and give proper written notice before raising the rent. In some cases, rent might not increase at all.

Myth #3 – Landlords can evict you anytime

A lot of people think a landlord can just wake up one day and kick you out. That’s not how it works in Canada. They need a legal reason, proper written notice, and must follow provincial rules. If you think it’s unfair, you can challenge it.

Myth #4 – You have no real tenant rights

It might feel like landlords have all the power, but tenants actually have strong rights. Laws protect you when it comes to privacy, repairs, rent increases, and eviction. Your landlord can’t just show up unannounced or ignore maintenance issues without consequences.

Myth #5 – Security deposits can be any amount

Wrong — landlords can’t just charge whatever they feel like. Most provinces limit security deposits, often to one month’s rent. Some don’t allow certain deposits at all. There are also rules about when and how that money must be returned.

Myth #6 – Renting is always more expensive than owning

Owning sounds cheaper long-term, but people forget about extra costs like property taxes, repairs, insurance, and surprise fixes. When something breaks in a rental, it’s usually the landlord’s problem — not yours. In many cases, renting can actually cost less month to month.

Myth #7 – You cannot negotiate rent in 2026

You’d be surprised — rent isn’t always set in stone. Especially for new leases, you can try negotiating. If the place has been sitting empty or you have great references and steady income, some landlords are open to lowering the price or adding perks.

Myth #8 – All rental listings are accurate

Not every listing tells the whole story. Pictures can be outdated, prices may change, and sadly, some listings are scams. Always double-check details, try to see the place in person, and never send money before signing a proper agreement.

Myth #9 – You must have perfect credit to rent

You don’t need a flawless credit score to rent. Landlords usually look at your overall situation — steady income, job stability, and references matter a lot. If your credit isn’t great, a co-signer or solid references can really help.

Myth #10 – Once you sign a lease, you are trapped

Signing a lease doesn’t mean you’re stuck forever. Life happens, jobs change, people move. In many provinces, you can assign or sublet your place, or work something out with your landlord. There are usually legal options if you need out early.

Frequently Asked Questions (FAQs)

Can a landlord raise rent every year in Canada in 2026?

In most provinces, landlords can only raise rent once every 12 months, must give proper written notice, and usually have to follow government-set limits on how much they can increase it.

Is a verbal rental agreement legally binding in Canada?

Yes, a verbal rental agreement can be legally binding in Canada, but having a written lease is much safer because it clearly outlines the terms and helps avoid disputes.

Why is it a good idea to rent?

Renting can be a good idea because it offers flexibility, fewer surprise repair costs, lower upfront expenses, and less long-term financial risk compared to owning a home.

Do tenants have rights in Canada?

Yes, tenants in Canada have strong legal rights that protect them when it comes to privacy, repairs, rent increases, and eviction rules.

How much can a landlord charge for a security deposit in Canada?

The amount a landlord can charge for a security deposit depends on the province, but it is often limited to around one month’s rent and must follow strict legal rules.