Should I use a real estate agent to find a rental in Toronto?

This article has been updated from a previous version. 

Jessica Richard’s apartment in Milton, a suburb in the Greater Toronto Area, was old and dirty. 

She recalls that “it was the kind of place where you feel like you can never get it clean because it’s been there for so long.”  

When Richard decided she wanted to move to Toronto to be closer to her campus, she wasn’t having any luck scanning Craigslist to find a suitable place. The search was looking grim — until a friend gave her the number for a real estate agent. 

Within a few days, the 26-year-old student and her boyfriend found a new one-bedroom condo in the Mimico neighborhood of Toronto, near campus and in their price range at $1,400 a month. It has all the amenities they were looking for: it was clean, came with in-suite laundry and a thermostat they have full control over. 

“I was tired of going to the laundromat and of not being able to control my thermostat,” says Richard. “I like sleeping in the cold.” 

In cities like Toronto, more prospective tenants are turning to real estate agents to help them find a rental property.

“In today’s market, people are lining up, cheques in hand, to see places,” Kim says. 

Realtors are good for renters because they can help sidestep the madness, he says. 

Should I use a real estate agent to find a rental in Toronto? 

The development frenzy in major urban centers like Toronto and Vancouver means that hundreds — if not thousands — of rental properties are listed on the market every week. But with few renters upgrading into homeownership, the supply of rental housing in major cities is tightening.  

Rental agents get first dibs on multiple listing services, or MLS. While listings on MLS are publicly searchable, there’s a 48-hour lag before the public can see them — and by then, it’s very likely a few offers have been placed, says Carly Hansher, a sales representative with RE/MAX Hallmark York Group Realty Ltd. in Toronto. 

Agents can arrange viewings (saving you the trouble of dealing with the landlord) and will sift through hundreds of listings to find the most suitable options in your price range. 

Do you pay a realtor to find a rental? 

Tenants don’t have to pay rental agent fees; the landlord pays the rental agent commission, typically the first month’s rent. 

Another bonus: they’ll be your chauffeur.     

“The best part of using a real estate agent for viewing rentals was the fact that he could drive me around — we saw four places in an hour and a half, and from those four, I found a place that worked for me,” says Kim. 

What are the drawbacks of going through a realtor? 

The benefits of having a real estate agent help you find a rental might sound too good to be true, but before you pick up the phone to call one up, there are a few drawbacks to note. 

An oft-repeated claim is that they can help you because they have the expertise to suss out sketchy lease agreements. That may be true, but in many instances, there’s a conflict of interest baked right into the agent-tenant relationship — which could put your best interests at risk. 

Most real estate agents don’t advertise that they work with renters. That’s because rental agent commissions in Toronto are substantially lower than the ones they can fetch in the resale market.  

Read next: Why I'll never go apartment hunting in Toronto again 

The agents have to take on many clients for lower pay to turn a profit, explains Conrad Rygier, a real estate broker with Right at Home Realty, meaning they might be less motivated to help you in your search. 

Most realtors that help you find rentals take on lease listings because they have a long-standing relationship with a landlord. And in many cases, the agent represents both the landlord and the tenant. 

It’s called multiple representation, and it’s not allowed unless the landlord and future tenant sign an agreement consenting to the arrangement, according to the Real Estate Council of Ontario (RECO), the provincial regulatory agency. 

“It can be on the back of the napkin; it doesn’t have to be a formal document,” says Kelvin Kucey, the former RECO’s deputy registrar. “But the agent has to be able to produce a document that shows that both parties have agreed that they can represent the landlord and the tenant for the purposes of the transaction.” 

Another drawback: given the competitive nature of the rental market in big cities, agents are less likely to take on clients who are still in school, who have less than the ideal credit ratings and anyone looking for cheaper housing. 

“With the way the market is, if I’m not selective, I’m wasting people’s time,” says Rygier. “If a client has poor credit, no employment — even with substantial savings — there’s only so many times you can represent people and have deals fall through. With the commission’s being low, I have to manage my time and my expenses fairly closely,”   

Hansher doesn’t show anything under $1,100 a month. “That’s where they start,” she says. “There isn’t much out there for less than that.” 

 Read more: How do high interest rates impact Canadian renters? 

How to choose an agent and navigate the process? 

The best advice, says Jim Kim, is to keep doing your homework.  

“You can’t rely on an agent,” he advises.  

“Keep looking on Kijiji and Craigslist… and the thing is that some people just don’t list — they put up a sign in their front window,” he adds. “Just walk around the neighbourhoods you want to live in.” 

In addition, know your rights by studying the Landlord Tenant Act and do your due diligence when choosing a rental agent in Toronto.  

Learn more: Real estate red flags: how to spot shady realtor behaviour in a wicked-hot housing market 

“You can’t tell the dishonest [agent] from [the] honest one from their words alone,” says Rygier. 

Is your agent sending you listings that don’t have any pictures, room dimensions or aren’t on MLS? That’s a sign that the agent isn’t fully committed in the process, and they’re likely doing a favour for a landlord.  

Your agent should have a “proper website, with a decently written property description,” says Rygier. Be prepared to move fast — really fast.  

“People will start looking for rentals two months before their move-in date… but a large majority of rental units are unoccupied, and landlords need quicker occupancy,” says Hansher.  

inteStart looking a month before you plan to move, at the earliest, she says. 

In today’s market, speed is the name of the game. 

“I don’t think people realize how quickly the market moves today,” says  Hansher. “It’s time sensitive. [Agents] can get you in quickly and get the offer in quickly. That’s the edge it takes.” 

Don’t feel pressured to sign a Buyer Representation Agreement (BRA), which obliges you to be exclusive with the agent or face penalties. Most agents don’t make tenants sign one until they’re ready to put in an offer, says Rygier. If you feel pressured, take it as a signal to back away. 

Remember that while agents can give you access to special listings and expert advice, there are some downsides, like conflicts of interest and the fast-paced market.  

Know your rights and pick an agent who is truly dedicated to helping you. By staying informed and active in your search, you can find a home that suits your needs. 

Read next: Factor in the cost of tenant insurance on your apartment hunt