Tips For Success In Today's Rental Market
Tuesday Aug 30th, 2022
As buyers reassess their finances and the impact of rising interest rates on their budgets, this has led to a slowdown in sales activity in the Greater Toronto Area over the past four months. The pandemic also forced thousands of students and tourism workers to return to the city, driving them to seek out new living arrangements, often rentals, during the recovery period. Coupled with a record level of immigration to Toronto, rents are skyrocketing in the GTA, causing extremely tight supply conditions.
Last quarter, the average rental cost for one- and two-bedroom apartments reached record levels, according to the Toronto Regional Real Estate Board's Rental Market Report, which increased by 20% and 15%, respectively, surpassing the previous high set in the third quarter of 2019. Despite the significant increase in rental prices across the board, multiple offers on rental apartments are prevalent in the downtown core. It is common to see 5 or 6 offers on rental apartments on the first day of viewings.
The rental landscape for tenants has never been more competitive in Toronto, and for prospective tenants to increase their chances of getting their application accepted, below is a list of helpful tips to help tenants stand out amongst other applications:
- Answer all questions on the rental application wholly and honestly. Ensure you have all required documents ready and organized, including an employment letter with your name and salary listed, two recent pay stubs, a full credit report, and references from the two most recent landlords.
- Personalize your rental application. When competing against multiple offers, a letter with a photo of yourself or even a video can help you stand out from other applications.
- A good credit report is essential. It is best to provide a full credit report from a reputable company such as Equifax or TransUnion.
- Student applicants or those without full-time employment should arrange for a guarantor to co-sign their application, someone whose income can also cover their housing expenses.
- Be punctual if meeting with the landlord or their real estate agent at the rental property. Dress presentably and be professional and polite.
Navigating the rental market can present challenges to tenants during their search. Having a licensed agent assist in the process can be highly beneficial in improving the outcome - be sure to reach out to us for assistance and we would be happy to help you along the way.