House vs. Condo vs. Multiplex: Which Property Type Scales Best in Canada?
The right property type depends on how active you want to be, your cash position, and your tolerance for special assessments. Here's how the three main rental types compare across Canada's market.
Single-family detached
The most landlord-friendly to operate (no condo board, no shared walls), but the worst $/rent return because you carry 100% of the land value. Best for landlords who want one tenant per property and minimum management overhead.
Condo apartment
Lowest entry cost but the highest hidden risk: special assessments. Toronto and Vancouver condos saw 8-figure special assessments hit landlord boards in 2024-2025 for window-wall and parkade repairs. Always order the status certificate AND read the reserve fund study before closing.
Plex (duplex / triplex / fourplex)
Best $/rent and operational efficiency — one mortgage, one roof, one furnace cycle. Canadian banks treat 1-4 unit buildings as residential mortgages (insurable, low rates). Five units and above shift to commercial financing (20-25% down, higher rate). The fourplex is the sweet spot.
Comparing all three on real numbers
Use cash-on-cash return, not cap rate, when comparing across property types. Cap rate hides the financing differential. A fourplex at 70% LTV often beats a SFH at 80% LTV on cash-on-cash even when the cap rate is lower.
Key takeaways
- Single-family = easy to manage, weakest $/rent.
- Condo = lowest entry cost, highest hidden special-assessment risk.
- Plex (2–4 units) = sweet spot for $/rent AND financing structure.
- Compare on cash-on-cash, not cap rate.
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Start free trialCommon questions
QWhat's the deadline to file rental income to the CRA?
Rental income is reported on the T776 form filed with your personal T1 return. The deadline is April 30 of the year after you earned the income (June 15 if you're self-employed, but any balance owing is still due April 30).
QDo I need to charge GST/HST on rent?
Long-term residential rent is GST/HST-exempt. Short-term rentals (under 30 days) are taxable once you exceed the $30,000 small-supplier threshold across all your business activities.
QCan I deduct mortgage payments?
You can deduct the interest portion (and most carrying costs) of your mortgage on a rental property, but NOT the principal repayment. Central Rentals splits this automatically inside your T776 export.