As rents decrease and vacancy increases in Canada with population declines and more rental supply coming to market, move-in incentives have become a key factor for renters searching for a new home and property owners looking to attract tenants.
Rental incentives cover a wide range of promotional offers, including one or more free months of rent, reduced or waived fees for parking, internet, and utilities, gift cards, and even cash bonuses. Based on data from Rentals.ca, approximately one in five listings is offering some sort of incentive to prospective renters.
New Builds in GTHA
According to recently released reports from Urbanation for Q1-2026, incentives have become prevalent for newly-completed purpose-built rental units in the GTHA, which are facing higher vacancy rates and more challenging lease-up conditions as they compete with a surge in supply from the secondary condo rental market.
In Q1, a 66% share of projects offered incentives, up from a 62% share a year ago and a 32% share two years ago. The most common incentive offered in Q1 was two months’ free rent, at a 47% share of projects, up from 32% in 2025 as building managers added an extra month to their incentive packages.
Other frequently-offered incentives included a cash move-in bonus (17%), parking or storage locker included (9%), 1.5 months of free rent (6%), three months of free rent (4%), and internet included (4%).
For the average unit, incentives reduced the effective face rent by 13%, or $379 per month. This was an increase from the average incentive discount of $292 in 2025 and $163 in 2024. When the market was at its peak in 2023, the average incentive discount from asking rent was only 2%, or $76 per month. On a per-square-foot basis, face rents averaged $4.05 psf in Q1, while net rents after incentives were $3.52 psf.
Ottawa Incentives Heat Up as Vacancy Rises
In the Ottawa rental market, the vacancy rate in stabilized buildings reached 3.2% in Q1, double the rate of two years ago. While purpose-built rents remained relatively stable at $3.28 per square foot, incentive-adjusted rents fell to $2.91 per square foot, an 11.4% discount from the asking price.
Much like in the GTHA, two free months of rent became the most common type of rental incentive in Q1-2026, with one month of free rent a close second, followed by three months of rent included. Rental incentives brought average face rents down the most in Gloucester (-16.5%), Britannia/Carlingwood (-14.5%) and Carlington/Iris (-14.4%).
Conclusion
As the rental market continues to see more supply and higher vacancy rates, move-in incentives have played an increasingly important role in the leasing process. For renters looking to move, the prevalence of richer incentives, such as two months of free rent, represents a significant opportunity. For property managers, incentives are an important tool for completing lease-up, competing with other rental projects and secondary condo rentals, and retaining tenants over the near term.
If you’re looking for a new rental and want to see what rental incentives look like in your area, try using the “Promotions” filter at Rentals.ca, which shows properties offering move-in incentives and bonuses for new tenants.
