Rent Receipts are essential documents for both landlords and tenants when proving payments or income for tax purposes. While they aren’t always required, they may be needed if you’re ever audited by the Canada Revenue Agency (CRA).
Landlords
The CRA learns about your rental income when you report it on your tax return. If you don’t have receipts, contracts, or other supporting documents, the CRA may not allow you to claim all or part of your rental property expenses.
Tenants
Tenants living in Ontario, Manitoba, or Quebec may be eligible to claim rent on their personal tax returns. Each of these provinces has a program that allows tenants to claim tax benefits or credits depending on various factors (e.g., amount of rent paid, age, income, etc.).  Without proof of the amount of rent paid, tenants may have issues proving their eligibility.