Rental listings offer move-in incentives as market favors renters

Move-in incentives are now a common feature in Canadian rental markets, with one in five listings offering some form of enticement to attract tenants. According to data from Rentals.ca, the shift reflects a broader trend as rents decline and vacancies rise in major urban centers. Landlords are increasingly using perks like free rent, waived fees, and cash bonuses to stand out in a competitive environment.

Rising competition in the GTHA

Newly constructed rental apartments in the Greater Toronto and Hamilton Area face particularly intense competition. These buildings must contend with each other and with a growing supply of secondary-market condos. Urbanation reports that two-thirds of new purpose-built rental projects in the region offered incentives in the first quarter of 2026 — up from 62% a year earlier and just 32% in 2024.

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The most common incentive remains two months of free rent, provided by nearly half of all new projects. That’s a jump from 32% in 2025. Other popular options include cash bonuses (17%), included parking or storage (9%), and internet services (4%). The average incentive in Q1-2026 reduced the face rent of a typical GTHA unit by about $379 per month — a significant increase from $292 in 2025 and $163 in 2024.

At the height of the rental market in 2023, discounts averaged just $76 per month. On a per-square-foot basis, asking rents in the GTHA averaged $4.05 in 2026, but effective rents after incentives dropped to $3.52. This gap highlights the growing role of incentives in shaping actual tenant costs.

Ottawa’s shifting rental setting

Vacancy rates in stabilized rental buildings in Ottawa reached 3.2% in Q1-2026 — double the rate from two years prior. While asking rents remained stable at $3.28 per square foot, incentive-adjusted rents fell to $2.91, a discount of 11.4%. The most common offer in Ottawa was two free months of rent, followed by one month and three months.

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Some neighborhoods saw even steeper discounts. In Gloucester, Britannia/Carlingwood, and Carlington/Iris, effective rents were cut by more than 14% due to incentives. These areas exemplify how localized market pressures can amplify the impact of rental perks.

Landlords in Ottawa and across Canada are recalibrating their strategies as tenant demand softens. The shift away from purely price-based competition toward incentive-driven approaches suggests a long-term adjustment in how rental markets operate.

Some analysts note that while incentives can lower immediate costs for tenants, they may also signal underlying challenges in maintaining stable rental incomes for landlords. The balance between attracting tenants and ensuring profitability remains a key concern for property managers.

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Broader implications for renters

The rise of move-in incentives has made it easier for renters to secure housing in a market that’s become more favorable to tenants. However, the long-term sustainability of these offers depends on broader economic factors, including interest rates, employment trends, and housing supply.

For now, the data shows a clear trend: landlords are adapting to shifting market changes by offering tangible benefits to attract tenants. Whether this approach will stabilize rental prices or merely delay inevitable adjustments remains to be seen.