{"id":68801,"date":"2026-08-06T09:38:50","date_gmt":"2026-08-06T16:38:50","guid":{"rendered":"https:\/\/liv.rent\/blog\/?p=68801"},"modified":"2026-08-06T09:38:57","modified_gmt":"2026-08-06T16:38:57","slug":"how-ontario-landlords-can-address-vacancy","status":"publish","type":"post","link":"https:\/\/liv.rent\/blog\/landlords\/how-ontario-landlords-can-address-vacancy\/","title":{"rendered":"How Ontario landlords can address vacancy in 2026"},"content":{"rendered":"\n

Why vacancy is a growing challenge for Ontario landlords in 2026<\/h2>\n

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Ontario vacancy rates are at a multi-year high<\/h3>\n

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Ontario landlords can address vacancy in 2026 by pricing units to current data, sharpening listings, screening tenants thoroughly, and building tenant relationships that cut costly turnover. According to Canada Mortgage and Housing Corporation (CMHC)’s 2025 Rental Market Report, released December 11, 2025, the Greater Toronto Area’s purpose-built vacancy rate climbed to 3.0% in 2025, its highest level since before the pandemic. Nationally, the average vacancy rate for purpose-built rental apartments across major centres rose to 3.1%, up from 2.2% in 2024. CMHC’s 2026 Mid-Year Rental Market Update, published June 9, 2026, shows asking rents continuing to decline in Toronto, Vancouver, Calgary, and Ottawa as new supply keeps arriving.<\/p>\n

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What softer conditions mean for individual landlords<\/h3>\n

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A softer market shifts leverage toward renters. Nearby buildings competing for the same applicants, longer lease-up periods, and more comparison shopping all mean a unit priced or presented the way it might have been two years ago can sit empty far longer than a landlord expects. CMHC’s 2026 update notes that in some cases, it can now take months to fill a vacant unit, particularly in newer or higher-priced buildings. liv.rent’s own July 2026 Ontario Rent Report<\/a> confirms the same pattern locally: most GTA municipalities recorded lower year-over-year unfurnished one-bedroom rents this July, with declines ranging from 0.6% in Burlington to 15.8% in Markham, and only Milton bucking the trend with a slight 0.3% increase. One-bedroom units accounted for 50.33% of active GTA listings this July, per the same report, so landlords in this segment face the most direct competition.<\/p>\n

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The real cost of a vacant unit<\/h3>\n

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Every week a unit sits empty means a week of lost rent, on top of cleaning, advertising, and the hours spent screening applicants. Those costs add up quickly and rarely show up in a landlord’s initial budget for a vacancy. On a $2,000 monthly rent, for example, the lost rent alone breaks down like this:<\/p>\n

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Vacancy duration<\/strong><\/td>Lost rent at $2,000 a month<\/strong><\/td><\/tr><\/thead>
1 week<\/td>$500<\/td><\/tr>
2 weeks<\/td>$1,000<\/td><\/tr>
1 month<\/td>$2,000<\/td><\/tr><\/tbody><\/table><\/figure>\n

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That’s before adding cleaning, advertising, and screening time, which is why treating vacancy reduction as an ongoing part of managing a rental, rather than something to handle only once a tenant gives notice, keeps those costs from compounding.<\/p>\n

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Strengthen your rental listing to shorten vacancy time<\/h2>\n

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Photos, pricing, and first impressions that convert<\/h3>\n

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A listing’s first impression often decides whether a renter clicks through or scrolls past. Clear, well-lit photos, an accurate description of the unit’s condition and features, and a price that matches what similar units are actually renting for all shorten the time a listing stays up. With apartments accounting for 94.96% of active GTA rental listings this July, per liv.rent’s July 2026 Ontario Rent Report, most landlords are competing against near-identical unit types, so overpricing, more than any other single factor, is why units sit empty in a softening market.<\/p>\n

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Writing a listing description that attracts qualified tenants<\/h3>\n

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A good listing description is specific rather than vague: square footage, included utilities, parking, and pet policy should all be stated upfront so renters can self-select before they apply. For tips on structuring a listing that converts, see liv.rent’s guide on how to write an attractive rental listing<\/a>.<\/p>\n

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Incentives are shaping how landlords compete for renters<\/h3>\n

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CMHC’s 2025 Rental Market Report found that 75% of GTA structures completed since 2022 offered at least one incentive to attract tenants during their lease-up period, most commonly one to two months of free rent. CMHC’s 2026 Mid-Year Rental Market Update adds that landlords are increasingly turning to free or discounted parking, gift cards, move-in credits, and cash bonuses to compete for renters in a softer market. Reaching a wide, verified pool of renters matters just as much as the incentive itself.<\/p>\n

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Price your unit right to avoid prolonged vacancy<\/h2>\n

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Compare your rent to current Ontario data<\/h3>\n

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Pricing decisions should start with the most recent local data rather than last year’s numbers. Per liv.rent’s July 2026 Ontario Rent Report<\/a>, the City of Toronto’s average unfurnished one-bedroom rent fell year over year by $87 to $1,961 a month, while most GTA municipalities recorded lower year-over-year rents this July. Rents are still easing month to month too: Toronto’s unfurnished one-bedroom average slipped another $9 in July, while the furnished equivalent fell $11 to $1,918. Rent per square foot tells a similar story regionally, ranging from $2.81 in Downtown Toronto to $1.31 in Brampton this July, so where a unit sits within the region matters as much as its size.<\/p>\n

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Ontario market (July 2026)<\/strong><\/td>Avg. unfurnished 1-bedroom rent<\/strong><\/td>Trend<\/strong><\/td><\/tr><\/thead>
Toronto (city-wide)<\/td>$1,961<\/td>Down $87 year over year<\/td><\/tr>
Downtown Toronto<\/td>$2,106<\/td>Down 1.0% year over year<\/td><\/tr>
Oakville<\/td>$2,132<\/td>GTA’s most expensive municipality this month<\/td><\/tr>
Oshawa<\/td>$1,652<\/td>GTA’s least expensive municipality this month<\/td><\/tr>
London<\/td>$1,487<\/td>Least expensive city tracked outside the GTA<\/td><\/tr><\/tbody><\/table><\/figure>\n

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Source: liv.rent’s July 2026 Ontario Rent Report.<\/em><\/p>\n

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That’s a $480 monthly gap between the region’s most and least expensive tracked municipalities, Oakville at $2,132 and Oshawa at $1,652, a reminder that hyper-local data beats a single citywide number when setting an asking rent.<\/p>\n

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Incentives versus lowering the asking rent<\/h3>\n

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Landlords facing a slow lease-up have two main levers: lower the advertised rent, or keep the rent steady and add an incentive, such as a free month or reduced parking. Incentives can be easier to reverse once the market tightens again, while a lower asking rent may become the new comparable for future renters in the building.<\/p>\n

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Track neighbourhood trends with rent reports<\/h3>\n

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Rent conditions vary block by block, not just city by city. Downtown Toronto, for example, saw one of the smallest year-over-year declines in the GTA this July, just 1.0%, easing from $2,127 to $2,106, while still ranking among the region’s highest-priced submarkets. Following liv.rent’s monthly Ontario Rent Report<\/a> gives landlords a running view of which municipalities and unit types are softening fastest, so pricing decisions can be adjusted before a unit has already sat vacant for weeks.<\/p>\n

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Tenant screening: filling your vacancy with the right renter<\/h2>\n

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What Ontario landlords can legally ask during screening<\/h3>\n

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Ontario Regulation 290\/98, a regulation under the Human Rights Code, sets out the business practices landlords may use when selecting a tenant. According to the Ontario Human Rights Commission<\/a>, landlords may request credit references, rental history, and credit check authorization, and may request income information only if they also request the others. None of these tools can be used to screen out an applicant based on a protected ground such as race, family status, or disability.<\/p>\n

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Key documents to request: income, credit, and rental history<\/h3>\n

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A consistent screening process, applied the same way to every applicant, protects both the landlord and the tenant. Request the same documents from every applicant: proof of income, consent for a credit check, and contact information for a previous landlord.<\/p>\n

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Why rushing the screening process costs more than waiting<\/h3>\n

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Filling a vacancy quickly with an unscreened tenant can create far more expensive problems than a few extra weeks of vacancy, from missed rent to a lengthy Landlord and Tenant Board process to resolve it. liv.rent’s built-in tenant screening tools<\/a>, including the Trust Score credit and background summary, let landlords assess applicants quickly without cutting corners.<\/p>\n

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Tenant retention strategies that prevent vacancy before it starts<\/h2>\n

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Early lease renewal conversations reduce turnover<\/h3>\n

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The cheapest vacancy to fill is the one that never happens. Reaching out to a good tenant a couple of months before their lease ends, rather than waiting for them to bring it up, gives both sides time to work out a renewal instead of defaulting to a move-out.<\/p>\n

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Maintenance responsiveness as a vacancy prevention tool<\/h3>\n

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Tenants who feel their maintenance requests are handled promptly are far more likely to renew. Slow repairs are a common, avoidable reason good tenants start looking elsewhere.<\/p>\n

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Weighing a rent increase against the cost of re-leasing<\/h3>\n

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On a $2,000 monthly rent, Ontario’s 2026 guideline of 2.1% adds $42 a month, or $504 a year, if applied to a sitting tenant. Compare that to the cost of a turnover: lost rent while the unit sits empty, cleaning, advertising, and screening time, and, in CMHC’s words, in some cases it can now take months to fill a vacant unit. In a softer 2026 market, retaining a reliable tenant is often the better math.<\/p>\n

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Understanding vacancy decontrol and what it means for Ontario landlords<\/h2>\n

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What vacancy decontrol means under the Residential Tenancies Act<\/h3>\n

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Ontario’s annual rent-increase guideline, 2.1% for 2026, applies to a sitting tenant’s rent. It does not apply once a unit becomes vacant and a new tenant agrees on a rent amount with the landlord, according to Ontario’s residential rent increases page<\/a>, last updated June 23, 2026. This is commonly known as vacancy decontrol.<\/p>\n

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How to set market rent for a new tenancy<\/h3>\n

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Once a new tenant signs a lease, the 12-month rule and the annual guideline apply going forward for that tenancy. Landlords must still give 90 days’ written notice, using the proper Landlord and Tenant Board form, before any future increase takes effect.<\/p>\n

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Rent-controlled versus exempt units in 2026<\/h3>\n

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Buildings, additions, and most new basement apartments first occupied for residential purposes after November 15, 2018 are generally exempt from the rent-increase guideline entirely, per Ontario’s rent increase rules. For a broader look at how these rules interact with eviction notices and tenant protections, see liv.rent’s Ontario rental laws<\/a> resources.<\/p>\n

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How liv.rent helps Ontario landlords address vacancy faster<\/h2>\n

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Listing your Ontario rental on liv.rent<\/h3>\n

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Every strategy in this guide, sharper pricing, a stronger listing, careful screening, and tenant retention, works better with the right tools behind it. liv.rent gives Ontario landlords access to a large pool of verified renters, reducing the time a listing spends unseen by qualified applicants.<\/p>\n

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Built-in screening, digital leases, and dashboard tools<\/h3>\n

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liv.rent’s landlord dashboard brings ID-verified applicants, Trust Score credit and background checks, digital lease signing, and rent collection into one place, so landlords spend less time juggling tools and more time filling the vacancy. For more on managing renewals and maintenance requests in one place, see liv.rent’s guide to the landlord dashboard and digital tools<\/a>.<\/p>\n

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Getting started in minutes<\/h3>\n

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Listing a rental on liv.rent takes just a few minutes, and landlords can post their first listing for free<\/a>. Combined with the pricing, screening, and retention strategies above, it is a practical way for Ontario landlords to keep vacancy short and costly turnover rare in 2026.<\/p>\n\n\n\t\t\n\t\t\t\t

What is the biggest reason Ontario rental units stay vacant too long?<\/h2>\t\t\t\t
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Overpricing is the most common cause. With the Greater Toronto Area’s purpose-built vacancy rate at 3.0% in 2025, per CMHC, and most GTA municipalities already showing lower year-over-year rents this July, per liv.rent’s July 2026 Ontario Rent Report, units priced at prior-year rates will sit longer. Comparing your unit to current, local listing data before you post is the fastest way to shorten vacancy time.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

Can Ontario landlords charge any rent when a unit becomes vacant?<\/h2>\t\t\t\t
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Yes. Ontario’s rent-increase guideline does not apply once a unit is vacant and a new tenant agrees on a rent amount with the landlord, per Ontario’s residential rent increases page. Once that tenant signs a lease, the 12-month rule and the annual guideline, 2.1% for 2026, apply going forward.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

How much does vacancy actually cost an Ontario landlord?<\/h2>\t\t\t\t
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Every week a unit sits empty means lost rent, plus cleaning, advertising, and time spent screening applicants. CMHC’s June 2026 Mid-Year Rental Market Update notes that in some cases, it can now take months to fill a vacant unit as new supply gives renters more options, making prompt, well-priced listings more valuable than ever.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

What is the fastest way for an Ontario landlord to fill a vacant unit?<\/h2>\t\t\t\t
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The fastest approach combines pricing based on current local data, a listing with clear photos and an accurate description, and quick access to a pool of pre-screened renters. Platforms like liv.rent connect Ontario landlords with ID-verified renters and built-in screening tools to speed up leasing.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

Is it better for an Ontario landlord to keep a good tenant or re-list at a higher rent?<\/h2>\t\t\t\t
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In most cases, retaining a reliable long-term tenant is more profitable. A 2.1% guideline increase on $2,000 rent adds $42 a month, while a single turnover means lost rent during the vacancy plus cleaning, advertising, and screening costs. In a softer 2026 market, the math favours keeping a good tenant.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

What can Ontario landlords legally ask when screening a tenant?<\/h2>\t\t\t\t
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Under Ontario Regulation 290\/98 and the Human Rights Code, landlords may request rental history, credit references, and credit check authorization, and may request income information only if they also request the others, per the Ontario Human Rights Commission. Landlords must not screen out applicants based on protected grounds such as race, family status, or disability.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

Do newer Ontario buildings have different vacancy and rent rules?<\/h2>\t\t\t\t
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Yes. Buildings first occupied for residential purposes after November 15, 2018 are generally exempt from Ontario’s annual rent-increase guideline, per the Ontario government. Landlords of these units can raise rent by any amount but must still give 90 days’ written notice and follow the 12-month rule between increases.<\/p>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\n