Securing a Rental Unit in Downtown Toronto
Casa Condominio Residenza on Charles Street East
If you’re a Toronto Star reader, you might have read a story that featured a very well known realtor! He’s tall, successful, bald, knows a lot about Toronto condos–Brad J. Lamb! Just below him were the words of an average built, modest realtor, with a full head of hair – me (Mark Savel)!
A few days before the article was published, I had a lengthy chat with Susan Pigg, a columnist for The Toronto Star’s Moneyville section. She was curious about the current state of the downtown rental market, and whether there was any truth to multiple offers scenario for downtown condo rentals. Brad Lamb, Dominic Calla and I were asked to share our experiences in this market with her. If you haven’t read it yet, give it a read here!
Naturally, an article can only fit so much. I wanted to share more insights to describe the current state of downtown rentals and ways to improve your chances of leasing a unit.
Last month, I was fortunate to participate in four different rental transactions. In each case, I represented one side (either the tenant or the landlord) so this provide me good perspective on what both parties go through. In short, supply of rentals is much lower than demand which has resulted in a tough time for potential renters!
Back in the day, renters could actually negotiate the suggested monthly rent because the monthly rent amount is not actually carved in stone. In a balanced market, I can usually negotiate anywhere from $25-$150 off the asking price. Various factors, such as market conditions, unit appearance, and length of lease, are just a few of the variables that can determine bargaining power. In today’s market, most of those chips are off the table. Some of the most popular areas people want to live are Liberty Village, the Bay Street Corridor, and the St. Lawrence Market. Units move quickly in these neighbourhoods and sometimes in less than a day. Why is this?
Location, location, location, lack of apartment rentals and high purchasing costs are the typical reasons! For the Bay Street Corridor, it’s the network of hospitals and the proximity to the University of Toronto that make it so desirable. For the Liberty Village and the St. Lawrence Market, it’s the convenience of having many amenities within walking distance (banks, bars, grocery stores, gyms, LCBO etc). With such high demands, finding a place in these areas is often tricky.
So what can you do to improve your chances?
Every person I worked with last month got the first unit they wanted. How? They were very well prepared. Since landlords have a large pool of renters to choose from, I always suggest my clients to get a few things in order ahead of time!
Landlords always ask potential renters to provide a current credit check. For $20 to $30, you can have one prepared and printed online from Equifax or Transunion. Landlords use the report to assess the worthiness of the potential renter. By having one ahead of time, you can review to ensure no mistake was recorded (a common problem these days!).
An employment letter is another valuable document that can go a long way in securing a unit. It can be obtained from your company’s human resources department and it typically states how much you make a year and the position you hold.
Most realtors (myself included) will ask you to fill out a rental application. It gives the landlord a quick summary of who you are as a person. It also asks for references from previous landlords and employers.
Those three documents can be vital in finding a lease. In some cases, it may even secure you a place without it goes up in price. I also suggest having a certified cheque or bank draft for the first and last months’ rent prepared before your realtor presents your lease. It shows you’re serious about the place and makes a great first impression!
Some extra expenses to plan for above and beyond rent are: key deposits (typically $150-$200 paid at the beginning of the lease and will be returned at the end of lease), tenant insurance, and utilities that are not covered in rent (i.e. hyrdo/heat).
All this may seem like a lot for a lease. But remember landlords have the cards in their favour and want to protect their investment by renting out their condo to the most qualified renter!
Happy hunting!
