Owning a rental property in Ontario is more than collecting rent — it’s a wealth strategy that can accelerate freedom when managed with foresight. Yet many first-time landlords underestimate the tax side of the equation, risking unnecessary stress or lost returns.
As both a Holistic Financial Coach and Licensed Mortgage Agent (Level 2) in Toronto, I work with professionals, families, and investors who want more than compliance — they want a strategy that supports their life goals, peace of mind, and legacy.
If you’re preparing to rent out a condo, duplex, or multiplex, here’s what you need to know to manage taxes like a pro — without losing the heart-centered approach that keeps money aligned with your values.
What Counts as Rental Income in Canada?
Any payment you receive in exchange for the use of your property is taxable rental income. That includes:
- monthly rent
- utility reimbursements
- parking, storage, or laundry fees
- deposits you keep
Keep each property’s records segmented.
Deductible Expenses Landlords Should Track
Maximizing allowable expenses is where professionals gain efficiency. Deductible items include:
- mortgage interest (not principal)
- property taxes
- insurance
- condo/management fees
- repairs & maintenance
- utilities you pay
- advertising, accounting, legal fees
- reasonable travel for oversight
💡 If you rent part of your home, apportion shared costs fairly.
Repairs vs. Capital Improvements
- Repairs (current expenses): Painting, fixing plumbing, replacing an appliance. Deductible in full the same year.
- Capital improvements: Renovations that add value or extend life (new kitchen, roof). Deducted over time via Capital Cost Allowance (CCA).
👉 Label upgrades correctly from the start; misclassification can be costly.
Depreciation (CCA): Use With Intention
CCA can reduce taxable income, but may trigger recapture when you sell.
- Optimize current expenses first.
- Use CCA only if it aligns with your hold period and exit plan.
Stay Organized Year-Round
- Cloud folders for leases, receipts, mortgage docs
- Monthly tracking routine
- If co-owned, split income/expenses by ownership share
🛠 Templates at /en/tools can help you stay consistent.
Ontario-Specific Notes for Professionals
- Declare income even if break-even
- Short-term rentals may involve HST and stricter reporting
- If investing abroad, coordinate with cross-border advisors
- High earners may explore holding companies (only if income/goals justify complexity)
Real Estate as a Holistic Wealth Lever
Your rental affects cash flow, taxes, and lifestyle. That’s why I combine coaching (values, calm) with technical planning (mortgages, taxes).
30-Day Starter Plan for New Landlords
- Week 1: Open a separate account for rental income/expenses
- Week 2: Log property details (mortgage, tax, insurance, lease)
- Week 3: Set monthly reminder to update your tracker
- Week 4: Book a tax-planning call (English/Spanish)
Work With Us
You’ve invested in real estate for more than income — you want peace of mind, long-term wealth, and alignment with your values.
Holistic. Professional. Toronto-based.