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How to Rent Strategically in Toronto’s Competitive Market

Written by Posted On Thursday, 15 August 2019 14:33
How to Rent Strategically in Toronto’s Competitive Market

Landlords and developers might be thrilled with the state of Toronto’s rental market, but many others are feeling the squeeze and waiting with bated breath for the next bit of bad news to filter down.

Renting in Toronto continues to be a hot button issue — with good reason — as the average cost of rent for 1 bedroom condo has reached $2,260 a month according to a recent BlogTO article. Renting has become so competitive that people are resorting to desperate tactics to secure a new home, even going as far as to offer above the asking or to pay multiple months of rent in advance. Some people have even left the city altogether and are now commuting from Mississauga, Oakville, and Hamilton.

Paying $2,260 a month simply isn’t an option for many renters — students and young professionals can find it particularly challenging to keep up with these payments. Under such circumstances, one cannot simply jump on the first unit they see; it’s necessary to use some tact when finding the right rental.

Gaging Your Commute

It’s hardly a secret that units further from the downtown core have a lower cost of rent, generally speaking. Of course, there are exceptions to the rule. One of the first things to do when assessing rentals is to gage your commute — how much can you handle travelling on a daily basis? And how much will you spend on commuting?

Saving a couple of hundred dollars a month on a rental is meaningless if you’re spending it on gas or public transit. In order to avoid negating your savings on a rental, it’s important to map out a unit’s proximity to expressways and transit stations before committing. When it comes to renting, google maps is your best friend.

Choosing the right Unit type

Not all units are created equally; condos, lofts, and apartment have some distinct differences. Apartment buildings are comprised of rental units, while a condo is made up individually owned units, some of which are rented out by their owners.

Lofts are like condos, though some buildings are converted from aging warehouses, churches, offices buildings, or even bakeries; other lofts, known as soft lofts, are purpose built residences that are designed to mirror conversions or feature similar floor plans.

For renters, there are a few key distinctions; apartment buildings are often not as well maintained as condos and don’t offer the same amenities. Apartments in duplexes and triplexes can be less expensive than those in condos; however, you might be sacrificing soundproofing, security, and insulation. Lofts are similar to condos but much like apartments, amenities are usually limited or non-existent. As well, lofts tend to be more in demand and therefore more expensive than condos.

Another factor to consider is square footage — getting more bang for your buck sounds great in theory but higher electricity and heating bills could also negative your savings. On the other hand, if utilities are included, by all means go for the unit with the larger floor plan.

Considering Roommates

Roommates aren’t for everyone, but if you’re trying to save money on a rental then having a roommate can be a great option. The difference in price for a 1 bedroom and a 2 bedroom can be relatively small in some cases; sharing a 2 bedroom can provide huge savings compared to living alone in a one bedroom suite.

Working with a Realtor

Some might see this as a shameless plug, but working with a realtor is one of the best strategies you can employ when in a competitive rental market; many renters are surprised to learn that relators are paid by landlords, making our services free to renters who employ us.

Not only is it our job to find a unit for the renter, but a realtor can help the renter prepare an application to give them the best chances of landing a unit. As well, a realtor can steer clients away from pricey neighbourhoods, saving a considerable amount of time.

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Robert Van Rhijn

Robert Van Rhijn is a Toronto based Realtor and Broker-of-Record at Slate Realty Inc. He founded Strata.ca in 2018 — a Toronto condo website featuring data and analytics you don’t need to be a statistician to understand. You can connect with Robert at robert@strata.ca.

https://truelofts.ca/

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