Week 1: Legal and Administrative Setup
Day 1: Change the locks on all exterior doors — never skip this, regardless of how trustworthy the previous owner seems. Day 2: Notify existing tenants in writing of the ownership change, your contact information, and the new rent payment process. Day 3: Contact your insurance broker to ensure landlord/property insurance is in place. Day 5: Set up a dedicated bank account for property income and expenses — critical for tax purposes. Day 7: File your N9 (or verify existing leases are properly assigned) with appropriate municipal authority.
Month 1: Financial Systems
Set up automatic rent collection: EMT (e-transfer) with automatic deposit, cheque, or a property management platform. Create a rent ledger — a simple spreadsheet tracking: date received, amount, unit number, payment method, and any notes. Open a high-interest savings account for your maintenance reserve — deposit your monthly maintenance budget (1% of value ÷ 12) automatically every month. Set up a folder (physical or digital) for every receipt, invoice, and expense — you'll need these for your tax return.
Month 2: Maintenance Baseline
Conduct a thorough inspection of both units (with 24 hours written notice to tenants). Document everything with photos. Create a maintenance log noting: approximate age of roof, furnace, water heater, windows, and major appliances. Schedule any deferred maintenance identified in your purchase inspection. Establish relationships with a plumber, electrician, and general handyperson in the local area — you'll need them eventually, and finding them before an emergency is much better than during one.
Month 3: Tax Preparation Setup
Meet with an accountant experienced in rental property before your first full tax year ends. Key items to set up: rental income tracking, expense categories (mortgage interest, property taxes, insurance, maintenance, management fees, vehicle mileage for property visits, professional fees), and Capital Cost Allowance (CCA) discussion. CCA is depreciation on the building — a tax deferral tool that requires careful planning. Your accountant should also review whether you qualify for any HST rebates if you did substantial renovations.
The First Lease Renewal: Your Income Growth Opportunity
When your first lease renewal comes up (assuming a year-to-year tenancy), you have two options: renew at the guideline increase (2.5% in 2026) with existing tenants, or allow the tenancy to end (if the tenant gives notice) and re-rent at market rates. In markets where rents have risen significantly since the tenant moved in — which is common in Ontario — market rates may be 10–30% above existing rents. This is why tenant turnover events are income-growth events in Ontario's rental market.