MUST READ: Collecdev-Markee Launches Missing Middle Portfolio In Toronto

Rental Income

Explore rental income in Canadian real estate - how it’s earned, reported, and managed for tax and investment purposes.

Rental Income

June 06, 2025


What is Rental Income?

Rental income is the revenue received by a property owner from tenants who occupy residential or commercial space under a lease or rental agreement.

Why Rental Income Matters in Real Estate

In Canadian real estate, rental income is considered taxable and must be reported to the Canada Revenue Agency (CRA).


Sources of rental income include:
  • Monthly rent payments
  • Additional fees (e.g., parking, utilities)
  • Short-term or vacation rentals



Landlords may deduct eligible expenses such as mortgage interest, property taxes, insurance, and maintenance costs to determine net income.



Understanding rental income is essential for investors, landlords, and homeowners generating income from secondary suites or short-term leases.

Example of Rental Income in Action

A homeowner reports rental income from a basement suite and deducts utility and repair expenses when filing their tax return.

Key Takeaways

  • Earned from residential or commercial leases
  • Must be reported as taxable income
  • Eligible expenses reduce net income
  • Applies to long- and short-term rentals
  • Key to property investment strategy

Related Terms

Additional Terms

Sellers' Market

A sellers' market occurs when demand for real estate exceeds available supply, giving sellers more negotiating power and often leading to higher. more

Special Assessment

A special assessment is a one-time fee levied on condominium owners to cover unexpected or underfunded major repairs, upgrades, or emergencies.. more

Environmental Assessment

An environmental assessment is a formal process used to evaluate the environmental impacts of a proposed real estate development or land use change.. more

Condominium Bylaws

Condominium bylaws are the rules and regulations set by a condo corporation that govern how residents, owners, and the condominium board must use and. more

Building Maintenance

Building maintenance refers to the routine upkeep, repair, and inspection of a property’s systems and structure to preserve functionality, safety,. more

Tenant Rights

Tenant rights refer to the legal protections and entitlements that tenants have under provincial residential tenancy laws in Canada.. more

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