What should I know about buying a property with a rent-geared-to-income tenant in Ontario?

Rent-geared-to-income arrangements are usually tied to a specific program agreement between a housing provider and a service manager, rather than being an ordinary private tenancy set up independently by a landlord, so buying a property with this kind of tenant in place can mean taking on obligations under that program's rules in addition to the tenancy itself. The rent charged does not reflect market rates and is instead calculated according to the program's own formula, which is not something a new owner can simply change.

Before purchasing, it is important to understand whether the property is actually part of a formal subsidized housing arrangement with its own agreement and reporting obligations, or whether the low rent instead reflects a private arrangement the previous landlord made informally. These are very different situations with different legal consequences for a buyer, and confusing one for the other can lead to real surprises about what you are actually taking on. Have your lawyer review any program documentation and confirm exactly what obligations, if any, would transfer to you before you commit to the purchase.