Can You Rent Out Your Condo During Interim Occupancy in Ontario?

New condo buyers sometimes assume that once they have keys and can move in, they can also treat the unit like a rental property right away. In Ontario, whether you can rent out your condo during interim occupancy depends on your builder’s purchase agreement — not simply on the fact that you’re able to move in.

The short answer is that it’s possible, but it isn’t automatic. Because you don’t yet hold legal title to the unit during interim occupancy, your ability to lease it to someone else is controlled by contract, not by ownership.

Why Interim Occupancy Complicates Renting

During interim occupancy, the builder — not you — still holds legal title to the unit. You have a contractual right to occupy it under your agreement of purchase and sale, along with an obligation to pay an occupancy fee, but you are not yet the registered owner. That distinction matters for renting:

• A landlord generally needs either ownership or the owner’s authority to lease out a property.
• Most builder agreements of purchase and sale directly address — and commonly restrict — subletting or assigning occupancy rights during this period.
• Some builders require their written consent before you can put a tenant in the unit at all during interim occupancy.

This is different from renting out a resale condo you already own outright, where the decision to lease is entirely yours, subject only to the condominium corporation’s own rules on leasing, if any.

Steps to Take Before Renting Out an Interim Occupancy Unit

1. Read your agreement of purchase and sale’s occupancy and assignment provisions. Look specifically for language about subletting, leasing, or assigning your interest during the interim occupancy period.
2. Ask your lawyer to confirm whether builder consent is required. If your agreement is silent or ambiguous, don’t assume you’re free to proceed — get a clear answer before signing a lease.
3. Check whether consent, if required, can be withheld and on what terms. Some builders permit leasing with notice; others restrict it more tightly, especially in buildings marketed around owner-occupancy.
4. Confirm who is financially responsible for the occupancy fee if you have a tenant in place. You remain contractually responsible to the builder regardless of whether a tenant is paying you.
5. Understand that once you lease the unit, Ontario’s residential tenancy rules apply to that relationship between you and your tenant, separately from your own arrangement with the builder.
6. Review the condominium corporation’s rules once it’s registered, since a corporation’s declaration, by-laws, and rules can also restrict or regulate leasing after final closing — even if the builder allowed it during interim occupancy.

Renting During Interim Occupancy vs. After Final Closing

The two situations can look similar from a tenant’s perspective, but the underlying legal framework is different:

• During interim occupancy, the builder still owns the unit, so your ability to lease depends entirely on what your agreement of purchase and sale allows — there’s no condominium corporation yet to have its own rules on the subject.
• After final closing, you own the unit, and any restrictions on leasing come from the condominium corporation’s declaration, by-laws, and rules instead of the builder’s agreement.
• In both situations, once you actually have a tenant in place, Ontario’s residential landlord and tenant framework governs your relationship with that tenant — this doesn’t change based on which stage of ownership you’re in.

What If Your Agreement Prohibits It?

If your builder’s agreement of purchase and sale prohibits leasing during interim occupancy, renting out the unit anyway can put you in breach of that agreement — a risk most buyers don’t want to take on a purchase this significant. If your plans include renting the unit out from day one, that’s worth flagging to your lawyer before you sign the original agreement, not after you’ve already moved in, since some flexibility may be negotiable up front.

Frequently asked questions