How to rent out your condo in Montreal: a complete guide for owners

Renting out your condo in Montreal is an excellent investment strategy, but the process can seem complex for many owners, especially new ones. Fortunately, with proper preparation and the right information, it’s entirely possible to turn this experience into a real financial success.

This comprehensive guide explains how to rent out your condo in Montreal by following the key steps, from checking the regulations to signing the lease.

Table of Contents

• Step 1: Check the condominium declaration
• Step 2: Prepare your condo for rent
• Step 3: Renting your condo in Montreal at the right price
• Step 4: Finding the ideal tenant
• Step 5: Sign the lease and submit the documents
• Step 6: Managing the tax aspects of renting a condo in Montreal
• Conclusion
• FAQ

Step 1: Check the condominium declaration

Before even considering advertising your condo for rent in Montreal, the first crucial step is to consult your declaration of co-ownership. This legal document governs the building’s operation and may contain specific clauses regarding rentals. Some condo associations impose restrictions to maintain a certain level of peace and quiet and ensure the quality of life for residents.

The following elements should be checked carefully:

• Authorization to rent: Some condominiums prohibit or restrict it (for example, prohibition of short-term rentals such as Airbnb).
• Minimum rental period: Often set at 12 months.
• Rules concerning tenants: Pets, smoking, access to common areas (swimming pool, gym, terrace).
• Landlord’s obligations: You may have to provide the syndicate with a copy of the lease and the contact details of your tenants.

Ignoring these regulations could result in fines and conflicts with the union.

Step 2: Preparing your condo for rental

To rent out your condo in Montreal, you must first prepare it properly. A clean, safe, and well-maintained condo will attract better tenants and justify a higher rent. Here are the essential steps to take:

• Repairs needed: Fix all the small details (door handle, leaking tap, cracks).
• Deep cleaning: Clean the condo from top to bottom, including appliances, windows and closets.
• Fresh paint: Apply a coat of paint in neutral tones for a modern look.
• Safety standards: Check that the smoke and carbon monoxide detectors are working.

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Step 3: Renting your condo in Montreal at the right price

Setting a fair rent is a delicate balance. To do this, you need to analyze the market by consulting listings for similar condos in your neighborhood on sites like Centris, Kijiji, and Facebook Marketplace. Then, calculate your monthly expenses to determine your break-even point.

Type of fees	Examples	Monthly estimate
Mortgage	Your monthly mortgage payment	Variable
Condominium fees	Contribution to the pension fund, maintenance	200 $ – 600 $
Taxes	Municipal and school taxes	250 $ – 500 $
Insurance	Non-occupant owner insurance	30 $ – 60 $
Interview	Unforeseen repairs (provision)	50 $ – 100 $

Your rent must cover these costs while remaining competitive. The amenities in your building (gym, pool, indoor parking) justify a higher rent.

Step 4: Finding the ideal tenant

The key to a smooth rental experience is choosing the right tenant. Write a clear listing with high-quality photos, specifying the square footage, number of rooms, inclusions, important rules, and price. Post your listing on multiple platforms to maximize your visibility.

Also consider organizing visits and making rigorous pre-rental checks Ask applicants to complete an application form and, with their written consent, conduct a credit and reference check. Verify references with previous landlords and employers.

Step 5: Sign the lease and submit the documents

Once you’ve found the perfect tenant, it’s time to formalize the rental of your condo. In Quebec, using the lease from the Administrative Housing Tribunal (TAL) is mandatory. This standardized form protects the rights and defines the obligations of both parties.

At the time of signing, you must also provide the tenant with a copy of the building regulations, which they must acknowledge receipt of in writing. This legally obligates them to comply with the condominium rules.

Furthermore, be aware that it is illegal in Quebec to require a security deposit for damages; only the first month’s rent can be requested in advance.

Step 6: Managing the tax aspects of renting a condo in Montreal

When you decide to rent out your condo in Montreal, the tax implications are significant. You will need to declare your rental income annually. The good news is that you can deduct many expenses to reduce your taxable income, including mortgage interest, condominium fees, municipal and school taxes, insurance premiums, property management fees, and repair costs.

If you convert your primary residence into a rental property, have your condo appraised at its fair market value at the time of the change of use. This appraisal will serve as the basis for calculating future capital gains. Consult an accountant or tax specialist to ensure you comply with all your obligations.

Conclusion

Understanding how to rent out your condo in Montreal is a process that requires diligence and a good understanding of the rules. By following these steps, you protect your investment and build a harmonious relationship with your tenant.

Ready to take your first steps into the world of condo rentals? Contact Nid d’amour for a free consultation and to learn how to maximize your return.

FAQ

Yes. A landlord can prohibit pets by clearly stating this in the lease. However, service animals can never be refused, as they are protected by law. Make sure the clause is specific and explained to the tenant from the outset.