The True Cost of Owning a GTA Rental Property in 2025

Owning a rental property in the Greater Toronto Area can be a rewarding long-term investment — but it is also more expensive than many new landlords expect. In 2025, rising interest rates, condo fee increases, and new maintenance standards have reshaped the financial landscape for property investors across Toronto, Mississauga, Brampton, Vaughan, Markham, and Durham.

If you’re thinking about renting out your property or expanding your portfolio, understanding the true cost of ownership is essential. Here is a clear, updated breakdown of what it really costs to own a rental property in the GTA today.

1. Mortgage Payments: The Largest Monthly Expense

Mortgage payments in 2025 will vary depending on your interest rate, loan amount, and whether you’re on a fixed or variable term.

Average 2025 Snapshot in the GTA

Average condo price: ~$720,000

20% down payment: $144,000

Mortgage amount: ~$576,000

Monthly payment (5.25% rate): $3,440–$3,650

Most landlords discover quickly that rent often does NOT fully cover the mortgage unless the down payment is high or the property was purchased years ago.

2. Condo Fees: Rising Faster Than Inflation

If you own a condo, expect condo fees to continue rising.

2025 Average Monthly Condo Fees

Toronto core: $0.85 – $1.15 per sq ft

GTA suburbs: $0.65 – $0.95 per sq ft

For a 700 sq.ft. unit, that’s $550 – $800 per month.

Condo fees often cover:

• Building insurance
• Amenities
• Security
• Repairs/maintenance
• Reserve fund contributions

Older buildings typically have higher fees due to aging infrastructure.

3. Property Taxes: Vary by Municipality

Property taxes are often overlooked but are a significant annual expense.

Average Annual Property Tax (2025)

• Toronto: 0.64% of assessed value
• Mississauga: 0.95%
• Brampton: 1.05%
• Durham (Pickering, Ajax, Oshawa): 1.1% – 1.3%
• On a $720,000 property, this means:
• Toronto: ~$4,600/year
• Mississauga: ~$6,800/year
• Brampton: ~$7,600/year

4. Landlord Insurance: Essential Protection

Standard home insurance is not enough for rentals — landlords need rental property coverage.

2025 Costs:

$40 – $90 per month, depending on location, property type, and coverage.

Insurance typically covers:

• Building damage
• Liability protection
• Loss of rental income (optional)

5. Repairs & Maintenance: Budget for More Than You Think

A good rule of thumb:
Set aside 1% of the property value per year for maintenance.

For a $720,000 property, this is $7,200 annually.

Common maintenance expenses:

• Appliance replacements
• HVAC servicing
• Plumbing issues
• Paint/touch-ups
• Wear-and-tear repairs

For houses, expect higher maintenance due to roofing, landscaping, snow removal, etc.

6. Vacancy Rates: Still Low, but Always Budget for Gaps

While GTA vacancy rates remain tight, every landlord experiences turnover.

2025 GTA Vacancy Snapshot:

• Toronto average: 1.4%
• GTA suburbs: 1.0% – 1.3%

Even with low vacancy, plan for:

• 1 month of vacancy every 12–18 months
• 1 month loss during major tenant turnover

This can cost a landlord $2,000 – $3,500 depending on unit size and location.

7. Leasing Costs: Photos, Marketing & Tenant Screening

Even if you self-manage, leasing has costs:

• Professional photos: $150 – $250
• Listing fees/ads: $50 – $100
• Tenant screening checks: $25 – $50

If using a licensed leasing agent, expect a one-time fee of one month’s rent.

8. Unexpected Costs Every GTA Landlord Should Expect

Here are common surprise expenses that catch owners off guard:

• Special assessments (condo buildings)
• Emergency repairs
• Legal fees for tenant issues
• Key fob replacements
• Lease break situations

Budgeting 5–10% annual buffer prevents financial stress.

So… What Does It Really Cost?

Here’s a realistic 2025 scenario for a Toronto condo landlord:

Estimated Monthly Carrying Costs (Toronto Condo)

• Mortgage: $3,500
• Condo fees: $700
• Property tax: $400
• Insurance: $60
• Maintenance reserve: $600
  Total Monthly Cost: ≈ $5,260

If rent is $2,850 per month, many landlords must cover the difference out-of-pocket unless they bought pre-2020 or put down a large down payment.

How Professional Property Management Helps Reduce These Costs

A management company like ENJ Property Management can help landlords:

• Reduce vacancy periods
• Avoid costly tenant mistakes
• Prevent major repair issues through routine inspections
• Secure better-qualified tenants
• Handle legal compliance and notices correctly
• Coordinate maintenance at better rates

This can save GTA landlords thousands of dollars annually.

Final Thoughts

Owning a rental property in the GTA in 2025 is still a strong long-term investment — but only when you fully understand the real costs. Planning ahead, setting proper budgets, and working with a professional management team ensures your property remains profitable and stress-free.

If you’d like help running the numbers for your specific property, I can create a custom cost breakdown for Toronto, Mississauga, Brampton, Durham, or York Region.