Are you thinking of taking a residential property on rent in Toronto? If so, then I hope you have a good budget. If you wish to be near downtown, then the rent is certainly expensive there. Consequently, property prices are skyrocketing, and the budget needed at most is C$ 2,000.
The average rent for a condo went up by 7.6% in the 3rd quarter of last year, raising it to C$ 2,385. Thus, A Condo for sale in Toronto is now quite expensive for the average Canadian. The average rent for a single bedroom apartment is now C$ 2,200. Vacancy rates have dropped down to 2 percent, the worst ever in the last 16 years.
The situation is dire. Toronto Region Board of Trade has hinted such a real estate issue affecting the city’s businesses because a lack of homes for employees to live means the city will not be able to retain talent.
In light of the current situation of real estate in Toronto, tenants have a few choices. They can go for apartments managed by a single firm as there has been an increase in dedicated rental buildings under construction.
Some houses situated near the downtown core are being turned into lofts, giving tenants outdoor and parking space. Toronto condos for sale are also available on rent. On the other hand, Condos in Toronto give tenants access to a pool, gym, party rooms, ample parking space and the like.
The rental process for a tenant looking for a Condo in Toronto
Finding a rental unit has its challenges but in Toronto’s case, it’s quite difficult and finding the right listing is the first step of this tough process. A number of other factors must be taken into consideration as well. Plus, Tenants are bound to obey the rules landlords have set.
The following steps can help simplify the rental process for you. It not only cuts down the information you will be reading but will help you find your home with relative ease.
1.Do have a check on the neighborhood
Toronto is an ethnically diverse city and is blessed with hundreds of different cultures. Each neighborhood in the city is filtered with its own style & demographics; not to mention the bars, restaurants and the mainstream fashion & culture that has shaped the city.
The following factors must be considered when checking the neighborhood and they are:
- Presence of educational institutions nearby?
- Distance from home to downtown.
- How far are the nearby grocery, convenience, pharmaceuticals, and other key stores?
- How far is the garage?
- How far is the nearest subway or streetcar station?
2. Budget planning
A considerable chunk of the budget will go in the rent apart from utilities & other costs. Hence, tenants must pick a range realistic for their finances and for the neighborhood they chose.
A good rule of thumb ensures the rent is not more than 30% of the salary. Tenants must also be able to cover tenant insurance, internet, parking space cost & other bills if they are to take a condo on rent.
3. Consulting a trusted real estate agent
It can be both the best and worst decision of a lifetime when it comes to using a real estate agent. Due to low vacancy, tenants need to be quick in deciding where to move when viewing the vacancies.
Real estate agents help make the process faster especially for first-time tenants. Here are some things to keep in mind when choosing an agent:
- Tenants do not pay the agent. The landlord bears that cost because the agent brought a tenant to them and aided in closing the deal too.
- Agents are paid the first month’s rent, and this is split between the listing agent and the tenant’s agent. They are not a valid resource if tenants are looking for rental units less than C$ 1,400.
- Do not have multiple agents.
- If one agent is not useful, get another one quickly
4. Keep your documents prepared
Now that you have found your desired places, you should be then ready to make an offer. The following checklist will help you prepare the needed documents:
- A Credit Report.
- Rental Application.
- Employment Letter.
- Pay Stub.
5. Signing the lease
Tenants are more likely to sign a lease. On general terms, leases run from 6 months to 12 months. Some landlords offer them on a monthly basis.
Have a look at these important lease tips:
- Deposits – If the rent is monthly, the first deposit cannot be more than that of a month and the same goes for weekly rent.
- Increase in rent – Rent cannot be increased for the first 2 months at least as there is a limitation on the increase amounts.
- Pets not allowed – Condos do not allow pets & landlords can evict tenants for having one. They can even deny applicants having pets.
- Check for additional clauses – Some landlords can add them (like a fee for late rents). Some are legitimate while some are not (and can end up in court).
In all cases, tenants should read the contract carefully and ask the landlord questions they have.
6. Do not forget to move your stuff
When you are shifting your apartment, you obviously cannot forget shifting your stuff from your old place to the new one. There are some ways for you to move your stuff:
- Hire some movers – That’s right. They are helpful in packing and moving the heavy stuff you have. In fact, hire some of your friends and pay them back through burgers, pizzas, and sodas.
- Getting Moving Boxes – They help deliver moving boxes to your home so you can pack your stuff and stack them decently. They even pick them up and move them to your place.
- MoveSnap – This online tool from a Toronto based startup helps tenants update their addresses, licenses and the like.
7. Activate the essentials and insurance
Now that you are unboxing your goods, you need to set up some essentials.
First, set the internet up because it is quite important in today’s mobile world. Check for packages from Teksavvy, Bell and Rogers if and only if you wish to change your ISP.
Also, landlords prefer that you set up tenant insurance and hydro before you move in. It protects your belongings in case of fire, theft and other (God forbid) calamities. It also provides liability insurance as well. RBC, Statefarm and TD Financial have good tenant insurance packages.
Here you have it! Your simplified guide to catching rental property with ease in Toronto. Settle in, set up your stuff, relax and get cozy for your entertainment binge.