Toronto’s rental market is evolving, and pet-friendly properties have become a strategic advantage for landlords. According to the Canadian Animal Health Institute (CAHI), 60% of Canadian households now own either a dog or a cat, with pet ownership steadily increasing in recent years. Yet, many renters struggle to find accommodations that allow pets, leading to strong demand for pet-friendly housing options.

Research from Zillow Rentals indicates that listings with pet-friendly amenities receive 76% more daily listings ‘saves’ (metric) and 91% more daily listings ‘shares’ than standard rental listings. This suggests that properties marketed as pet-friendly attract more tenant interest.

For real estate investors, the key question isn’t whether to allow pets—it’s how to structure pet-friendly properties in a way that maximizes profitability while mitigating risks.

The Financial Impact of Pet-Friendly Features

Higher Rents and Lower Vacancy Rates

Pet-friendly properties tend to lease faster and retain tenants longer than non-pet-friendly units. Since pet owners have fewer rental options, they are more likely to commit to longer lease terms, reducing landlord costs related to tenant turnover.

Additionally, Zillow’s research found that properties with pet-friendly features command higher engagement and rental premiums. While specific figures for Toronto are not available, market trends suggest that pet-friendly amenities justify premium rental rates in competitive markets.

Strategic Location Matters

If a property lacks outdoor space or built-in pet amenities, proximity to pet-friendly infrastructure becomes crucial. Investors should focus on properties near:

  • Parks and green spaces (e.g., High Park, Trinity Bellwoods, Riverdale Park).
  • Walkable neighborhoods with pet-friendly businesses (e.g., dog-friendly cafés, grooming services).
  • Essential pet services (e.g., veterinary clinics, pet daycares).

Rental units located in walkable, pet-friendly neighborhoods tend to attract more pet owners, allowing landlords to market their properties as pet-friendly even without dedicated pet amenities.

How to Make a Property Pet-Friendly Without Increasing Risk

A common concern among landlords is property damage caused by pets. However, with smart renovations and thoughtful design choices, landlords can protect their investment while making their property attractive to pet owners.

Upgrade to Durable, Scratch-Resistant Flooring

Carpets absorb odors, trap pet hair, and stain easily. Investing in pet-resistant flooring minimizes maintenance and prolongs the life of the unit. The best options include:

  • Luxury Vinyl Plank (LVP) – Water-resistant, scratch-proof, and cost-effective.
  • Porcelain or Ceramic Tile – Durable, easy to clean, and ideal for high-traffic areas.
  • Sealed Hardwood or Laminate – A premium aesthetic with improved scratch resistance.

Replacing carpet with hard flooring reduces wear and tear while lowering long-term maintenance costs.

Install a Pet-Washing Station in Multi-Unit Buildings

Many new rental developments in Toronto now include pet-washing stations as a premium amenity. These provide a designated space for tenants to groom pets, reducing wear and tear on in-unit bathtubs and plumbing. For multi-unit properties, a shared pet-wash area differentiates a rental from competing buildings and enhances its marketability.

Create Designated Outdoor Pet Areas (Where Possible)

If a property has outdoor space, converting part of it into a designated pet area can increase appeal while protecting shared spaces from pet-related wear and tear.

Features of a functional pet relief/play area include:

  • Artificial turf or gravel for easy maintenance.
  • Waste disposal stations for cleanliness.
  • Secure fencing for tenant safety.

For properties without outdoor space, proximity to pet-friendly parks and trails becomes even more critical in attracting pet owners.

Soundproofing to Minimize Noise Complaints

One of the biggest concerns with pet-friendly rentals is noise—particularly barking dogs. Strategic soundproofing solutions can reduce conflicts and improve tenant satisfaction.

Simple upgrades that help include:

  • Weather-stripped doors to block noise transmission.
  • Insulated walls to dampen sound between units.
  • Acoustic panels or rugs to absorb indoor noise.

These modifications enhance the experience for all tenants, ensuring that pet-friendly policies do not negatively impact other residents.

Legal Considerations for Pet-Friendly Rentals in Ontario

Ontario’s Residential Tenancies Act (RTA) prohibits landlords from enforcing “no-pet” clauses, meaning a tenant cannot be evicted simply for having a pet. However, this law applies only after a lease has been signed.

Before entering into a tenancy agreement, landlords have the right to refuse applications from pet owners. Once a lease is in place, a landlord cannot prohibit a tenant from having a pet or evict them for owning one—except in specific cases.

Legal Exceptions Where a Pet May Be Prohibited or Lead to Eviction:

  • The pet is causing excessive damage to the unit or building.
  • The pet poses a safety risk to other tenants (e.g., aggressive behavior).
  • The pet is causing serious disruption (e.g., persistent barking leading to noise complaints).
  • The rental unit is in a condominium or co-op with enforceable pet restrictions in its bylaws.

Additionally, Ontario landlords cannot charge additional pet deposits or monthly pet fees, as only a rent deposit (for last month’s rent) is permitted under the RTA. This means landlords must manage potential pet-related risks through proactive maintenance, clear lease agreements, and durable property upgrades rather than financial penalties.

Final Thoughts

Toronto’s rental market is shifting toward pet-friendly housing, and landlords who adapt to this demand will gain a competitive advantage.

For real estate investors, prioritizing properties near pet-friendly amenities, making durable property upgrades, and setting reasonable maintenance expectations ensures that rental units remain both profitable and sustainable.

By understanding legal obligations, investing in smart renovations, and targeting high-demand locations, landlords can maximize rental income, reduce tenant turnover, and maintain long-term property value.

In a competitive rental market, landlords who position their properties to attract pet owners will benefit from higher tenant retention and increased rental returns.