Rental guarantee programfor Ontario landlords
Up to $60,000 in rent default coverage, $10,000 in property damage protection, $1,500 in legal and eviction fees, and 30 days of rent for early lease breaks. Available in Hamilton, Burlington, Kitchener, Stoney Creek, Grimsby, Ancaster, Dundas, and the Greater Toronto Area.
What Does the Rent Guarantee Cover?
Rental Income Protection
Property Damage Protection
Lease Break Protection
Without rent protection, Ontario landlords face thousands in losses from tenant defaults, eviction costs, and property damage.
-$12,000
-$1,250
6-12 months
What Does the Rent Guarantee Cover?
Tenants can stop paying rent for many reasons — job loss, personal hardship, illness, or financial difficulty. The Found Spaces Rent Guarantee covers you regardless of the reason. You won’t have to worry about lost rental income, legal costs, or property damage repairs.
Rental Income Guarantee
Lease Break Protection
Legal Support & Eviction Resolution
Property Damage Protection
Documents Needed to Apply for Rent Guarantee
For New Tenants
New tenants with less than 6 months on the lease are
required to submit the following documents:
- Tenant credit report or SingleKey Tenant Report
- Proof of income
For Mid-Lease Tenants
Mid-lease tenants with over 6 months on the lease are
required to submit the following documents:
- Proof of rent payment for the past few months
- Tenant credit report or SingleKey Tenant Report
(optional, but preferred) - Proof of income (optional, but preferred)
Eligibility Requirements for Rent Guarantee
Tenant Requirements
Tenants are qualified to be covered by Rent Guarantee if they have:
- No bankruptcy or previous eviction on a credit report in the
past three years - At least one employed member in the household
- A Rent-to-Gross Household Income Ratio not exceeding 45%
- Tenants will not be assessed based on their credit score
Owner & Property Requirements
Owners can get their property/properties covered by Rent Guarantee if they can provide proof of the following:
- The property is located in Canada (except Quebec)
- They have a valid lease signed with a tenant
- To claim property damage, a move-in
checklist or pre-inspection pictures
Pricing
5% of Monthly Rent
- Guaranteed Rent
- Damage Protection
- Legal Fee Coverage
- Vacancy Protection
- 2 Free Tenant Reports
5.5% of Monthly Rent
When you pay monthly
- Guaranteed Rent
- Damage Protection
- Legal Fee Coverage
- Vacancy Protection
- 2 Free Tenant Reports
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What Hamilton Landlords and Tenants Say About Found Spaces
Rent guarantee program
The Found Spaces Rent Guarantee protects Ontario landlords against financial losses from tenant defaults, property damage, lease breaks, and eviction costs. Coverage begins with proper tenant placement through our professional leasing services.
Rental income protection
Up to 12 months of missed rent payments covered. You receive your expected rental income even if a tenant defaults.
Property damage protection
Covers tenant-caused damage beyond normal wear and tear. Our in-house maintenance team handles repairs efficiently.
Lease break protection
If a tenant breaks the lease and vacates unexpectedly, you're compensated with up to 30 days of rent while we find a replacement.
Legal and eviction support
Covers legal fees when eviction becomes necessary. We handle all LTB filings and tribunal proceedings in-house.
Eligibility requirements
How it works
Financial security
A reliable income stream even when tenants default. No more absorbing months of lost rent while waiting for the LTB.
Property maintenance
$10,000 in damage coverage means you maintain your property's value without significant out-of-pocket expenses.
Peace of mind
Legal fees for evictions are covered. Manage your properties with confidence knowing you're protected.
What is a rent guarantee program?
A rent guarantee program is a financial protection service designed for landlords. It ensures that rental income continues flowing even when tenants fail to pay. Rather than absorbing the loss and waiting months for resolution through the Landlord and Tenant Board, landlords with rent guarantee coverage receive their rental payments from a third-party provider while the default is resolved.
Unlike standard landlord insurance, which typically covers structural damage and liability, a rent guarantee specifically protects your cash flow against tenant non-payment, the single most common financial risk Ontario landlords face.
Why Ontario landlords need rent protection
Ontario's landlord-tenant laws are among the most tenant-protective in Canada. While this creates important safeguards for renters, it leaves landlords financially exposed during tenant disputes in ways that many property owners don't understand until it's too late.
The Landlord and Tenant Board currently has significant hearing backlogs, with many non-payment cases taking 6 to 8 months or longer to reach a hearing. During that entire period, landlords receive no rental income but remain responsible for mortgage payments, property taxes, insurance, and maintenance costs. For a property renting at $2,200 per month, that represents $13,200 to $17,600 in lost income before the LTB even hears your case.
Ontario also prohibits landlords from collecting damage deposits. Unlike most other provinces, Ontario only allows a last month's rent deposit, and that deposit can only be applied to the final month of the tenancy, not to cover property damage. If a tenant causes $8,000 in damage to your unit, you have no deposit to draw from and must pursue the cost through the LTB or small claims court, a process that can take additional months with no guarantee of recovery.
The eviction process itself adds further costs. Filing an N4 notice for non-payment is just the first step. If the tenant does not pay or move out, landlords must file an L1 application with the LTB, attend a hearing, obtain an eviction order, and potentially hire the Sheriff's office to enforce it. Legal representation, filing fees, and lost time can easily add $1,500 to $5,000 to the total cost of a single eviction.
The Found Spaces Rent Guarantee eliminates this financial exposure. Rather than absorbing months of lost income and legal costs while navigating the LTB process, our program covers your rental payments from the first missed month, pays legal and eviction fees up to $1,500, and provides up to $10,000 in property damage coverage. Learn more about our 9-step Acceler8 Tenant Audit to see how we ensure tenant reliability before coverage activates.
Rent guarantee vs. landlord insurance
They protect against different things. Most landlords need both.
| Feature | Landlord insurance | Found Spaces Rent Guarantee |
|---|---|---|
| Tenant non-payment of rent | Not covered | Covered up to $60,000 (12 months) |
| Tenant-caused property damage | Usually not covered | Covered up to $10,000 |
| Legal and eviction fees | Not covered | Covered up to $1,500 |
| Early lease break | Not covered | Covered, 30 days of rent |
| Fire, flood, storm damage | Covered | Not covered (not tenant-caused) |
| Liability (visitor injury) | Covered | Not covered |
| Loss of rent due to property damage | Usually covered | Not applicable |
Rent guarantee coverage available across:
Frequently Asked Questions About Rent Guarantee
What does the Found Spaces Rent Guarantee cover?
The Rent Guarantee covers four types of tenant-related financial loss: up to $60,000 in missed rent payments (12 months of coverage), up to $10,000 in tenant-caused property damage, up to $1,500 in legal and eviction fees, and 30 days of rent if your tenant breaks their lease and vacates without notice.
How much does the Rent Guarantee cost?
The Rent Guarantee is available at two pricing tiers: 5% of monthly rent if paid annually, or 5.5% of monthly rent if paid monthly. Both tiers include the full coverage package. For a property renting at $2,200 per month, the annual plan works out to approximately $110 per month — significantly less than the cost of even one month of missed rent.
What is the difference between rent guarantee and landlord insurance?
Landlord insurance covers physical property risks like fire, flood, and liability. It does not cover tenant non-payment of rent, tenant-caused damage, or eviction costs. A rent guarantee specifically covers the financial losses that landlord insurance excludes — lost rental income due to tenant default, property damage caused by the tenant, and legal fees. Most Ontario landlords need both.
How do I file a claim if my tenant stops paying rent?
If your tenant defaults on rent, you can file a claim online through Found Spaces. The claims process is designed to be quick and efficient, minimizing disruption to your cash flow. Our team provides support throughout the process, including guidance on issuing the required N4 notice and filing with the Landlord and Tenant Board if necessary.
Is there a waiting period before coverage begins?
Coverage terms, including any applicable waiting periods, are outlined in your Rent Guarantee agreement upon enrollment. Landlords should review the specific terms for their property. Found Spaces provides a full walkthrough of coverage details during the onboarding process.
Do I need to use Found Spaces for property management to get the Rent Guarantee?
The Rent Guarantee is available as part of our full-service property management in Hamilton and Southern Ontario. This is because proper tenant screening and lease documentation are essential to the program’s effectiveness. By managing the screening and leasing process, Found Spaces ensures that the eligibility criteria are met from the start, which protects both the landlord and the program.
What areas does the Rent Guarantee cover?
The Rent Guarantee is available to landlords with properties in Hamilton, Burlington, Kitchener, Stoney Creek, Grimsby, Ancaster, Dundas, and the Greater Toronto Area. If your property is in Southern Ontario and you are unsure about coverage, contact Found Spaces for confirmation.
What documents do I need to apply?
Documentation requirements depend on whether the tenant is new or mid-lease. For new tenants with less than 6 months on the lease, you need a tenant credit report or SingleKey Tenant Report and proof of income. For mid-lease tenants with over 6 months on the lease, you need proof of recent rent payments, and a credit report and proof of income are preferred but optional.
What happens if my tenant damages the property?
The Rent Guarantee includes up to $10,000 in coverage for tenant-caused property damage beyond normal wear and tear. This is especially important in Ontario, where landlords cannot collect a separate damage deposit — only a last month’s rent deposit, which cannot legally be applied to damage repairs.
What if my tenant breaks the lease and leaves early?
If your tenant breaks the lease and vacates without proper notice, the Rent Guarantee covers up to 30 days of rent. This gives you financial breathing room to find a replacement tenant without absorbing the full cost of the unexpected vacancy.
How long does coverage last?
The Rent Guarantee covers up to 12 consecutive months of missed rent per claim, with a maximum payout of $60,000. Coverage remains active as long as the landlord maintains their enrollment and meets the program’s eligibility requirements, including proper lease documentation and tenant screening.
Is the Rent Guarantee worth it for a single rental property?
Yes. A single eviction in Ontario can cost a landlord $5,000 to $15,000 or more when you factor in lost rent during the 6 to 8 month LTB hearing backlog, legal fees, and potential property damage. The Rent Guarantee premium for a $2,200 per month property is approximately $1,320 per year on the annual plan — a fraction of what a single tenant default could cost without coverage.
Peace of Mind in Rental Property Investment starts here
Last Updated March 2026
Found Spaces Property Management Inc., headquartered at 472 Beach Rd, Hamilton, ON L8H 3K7, offers the Rent Guarantee program to residential landlords across Hamilton, Burlington, Kitchener, Stoney Creek, Grimsby, Ancaster, Dundas, and the Greater Toronto Area.