Real Estate

Current 416 rental demand

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  • Feb 23rd, 2020 1:31 pm
Deal Addict
Mar 13, 2017
1042 posts
1194 upvotes

Current 416 rental demand

Curious as to other current experiences:

I have a 2BR+Den main floor home currently up for rent, tenants departing end of Mar. 2016 was the last time this unit was up for rent.

I always price my units slightly below market to have a larger pool to pick from. In 2016 I had to raise the price point just to keep up with inquires.

If I was to compare demand based on inquires, I'd say it's currently 15% of what 2016 was. I can still make this work, but I'm wondering if others are seeing the same?
30 replies
Deal Addict
Dec 30, 2012
1098 posts
1147 upvotes
Toronto
Just to clarify, did you mistype and you actually mean that inquiries are down 15%? Or you’re really saying that they are at 15% volume (i.e. down 85% vs 2016)?

During what month in 2016 did you list the apartment?

Perhaps the flood of condos is having an effect. I also wonder what Coronavirus will do to the massive numbers of Chinese foreign students come September.
Newbie
Jul 5, 2018
70 posts
99 upvotes
The rental market is def softer. I always keep track of rental activity in my building and right now there are 30 units for rent and 1 for sale. Ive never seen such a ratio before. Usually no more than 10 units avail for rent.

Rent has also gone the opposite direction and units can be rented at 2017 and 2018 prices.
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
Sennzy wrote: The rental market is def softer. I always keep track of rental activity in my building and right now there are 30 units for rent and 1 for sale. Ive never seen such a ratio before. Usually no more than 10 units avail for rent.

Rent has also gone the opposite direction and units can be rented at 2017 and 2018 prices.
Yea I'm seeing more rentals and they're not getting scooped up like before. How interesting...more product is resulting in stabilized pricing? Hell, we may even see a drop in price. What a novel concept. So supply and demand DOES work. Meanwhile we read nothing but garbage articles about how difficult it is to find rental housing and how the government needs to do all this extra shit that doesn't include increasing rental supply. Too many jokes with a voice.
Deal Addict
Feb 19, 2019
2347 posts
4020 upvotes
Stouffville ON
JayLove06 wrote: Yea I'm seeing more rentals and they're not getting scooped up like before. How interesting...more product is resulting in stabilized pricing? Hell, we may even see a drop in price. What a novel concept. So supply and demand DOES work. Meanwhile we read nothing but garbage articles about how difficult it is to find rental housing and how the government needs to do all this extra shit that doesn't include increasing rental supply. Too many jokes with a voice.
I am seeing the same thing, the demand for rental is softer in comparison to previous year, has not translated into resale but I am kind of hoping the market will be more balanced given the amount of rental units in the buildings.
Full Time and Full Service Realtor
Deal Addict
Jan 17, 2006
2496 posts
2740 upvotes
Toronto
Checked in my buildings and looks normal, most of the units rented in 2 weeks. It is pretty good for winter I would say.
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
senasena wrote: I am seeing the same thing, the demand for rental is softer in comparison to previous year, has not translated into resale but I am kind of hoping the market will be more balanced given the amount of rental units in the buildings.
Resale is a different animal IMO.
Deal Addict
Jul 14, 2002
2759 posts
1396 upvotes
Confimed seeing the same softness in rental recently. Wouldn’t necessarily say the demand is dropping significantly or supply is increasing significantly but it appears to me that a price ceiling is being established. Have seen a few price drops with other properties.
905 condo rental market btw.
Member
User avatar
Jan 7, 2019
368 posts
376 upvotes
My downtown condo's tenant left Dec 2019 after three years and i relisted the unit in January 2020. It's a small unit with no parking, 1 bedroom, about 460sq ft. Asked for $2200 for 3-4 weeks with 0 inquires, then i priced it south of $2000 and got 6 showings in the first couple of days.

I'm ok with lower rent since i bought my unit long long time ago.
Remember to always Thumbs Up good responses! Spread positively.
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
BrokeMillennial wrote: My downtown condo's tenant left Dec 2019 after three years and i relisted the unit in January 2020. It's a small unit with no parking, 1 bedroom, about 460sq ft. Asked for $2200 for 3-4 weeks with 0 inquires, then i priced it south of $2000 and got 6 showings in the first couple of days.

I'm ok with lower rent since i bought my unit long long time ago.
Right. Let the market handle itself. You don't need rent control if the supply exceeds the demand. Now you have to watch just how low you drop the rent because you're not going to be able to recoup. I'm glad to see that rents are plateauing. Precisely why I had no interest in buying these $1500/ft boxes they're peddling nowadays in precon.
Member
User avatar
Oct 31, 2019
438 posts
564 upvotes
For 1br and 2br units the average rent is up about 0.5% YoY in January and avg. days on market is at the highest level for January since 2016 (29 days for 2br vs. 24 days 2017-2019).

In January bachelors saw the most days on market for any month since June 2014 but average rent is up 4% from January last year.

Have there been a lot of completions lately?

On a macro scale most of the Millennial generation has been in the workforce for several years and there are fewer members of the next generation in Canada, meaning that in the absence of elevated immigration it's difficult to imagine where the new rental demand will come from.

https://www.populationpyramid.net/canada/2019/
Deal Addict
Mar 13, 2017
1042 posts
1194 upvotes
civiclease wrote: Just to clarify, did you mistype and you actually mean that inquiries are down 15%? Or you’re really saying that they are at 15% volume (i.e. down 85% vs 2016)?

During what month in 2016 did you list the apartment?

Perhaps the flood of condos is having an effect. I also wonder what Coronavirus will do to the massive numbers of Chinese foreign students come September.
Had it up same perod in 2016 for an Apr1 occupancy date. Asking 10% more than I achieved In 2016, but still less than like product is currently listed for. Had 7 nquiries in first 48hrs listed. Had 48 back in 2016. Also noticed the comp on kijiji and the cost to maintain is massive comp'd to 2016. There was no need to pay in 16, just renew the add every week or so. Now, a newly posted add is on page 20 in hours.
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
1cat2dogs wrote: Had it up same perod in 2016 for an Apr1 occupancy date. Asking 10% more than I achieved In 2016, but still less than like product is currently listed for. Had 7 nquiries in first 48hrs listed. Had 48 back in 2016. Also noticed the comp on kijiji and the cost to maintain is massive comp'd to 2016. There was no need to pay in 16, just renew the add every week or so. Now, a newly posted add is on page 20 in hours.
Yes, I had noticed this. Kijiji has raised the prices. I used to have 2 adds running in parralel 1 day difference. Would just create a new add and delete the old one every other day or so. Now it doesn't look like I can run 2 adds at a time and also there's so much activity that your add is on the 10th page in an hour.

So many agents using kijiji along with landlords, so it was inevitable.
Deal Guru
User avatar
Sep 8, 2007
10977 posts
14468 upvotes
Way Out of GTA
JayLove06 wrote: Yea I'm seeing more rentals and they're not getting scooped up like before. How interesting...more product is resulting in stabilized pricing? Hell, we may even see a drop in price. What a novel concept. So supply and demand DOES work. Meanwhile we read nothing but garbage articles about how difficult it is to find rental housing and how the government needs to do all this extra shit that doesn't include increasing rental supply. Too many jokes with a voice.
Wonder if we will see in the Toronto Star “Rental prices softening, rental options improving for tenants in 2020”?

Yes, we all know the answer to this question. And why the stock is at 40c.
Jr. Member
Aug 7, 2003
133 posts
37 upvotes
Have a 1 bedroom in park lawn up on kijiji and facebook and it definitely will take some work to get it rented out, been refreshing ads for 2 weeks. Definitely softer than a year ago.
Sr. Member
Nov 10, 2017
905 posts
655 upvotes
Demand is there but rent is too high and out of reach to many. Most landlords want to ask for as high as possible due to rent control. Culprit: Rent Control.
Newbie
Jun 20, 2017
15 posts
20 upvotes
The real reason rents softened out is the AirBNB ruling passed in late november which changed the game, no more commercial AirBnb units, so most of those units got thrown back on to the long term rental market. I was running 5 Airbnb condo units and just had to pull out and rent them out to comply with the new rules
Deal Addict
Mar 13, 2017
1042 posts
1194 upvotes
that's amazing ..

while agents are pitching negative cash flow as a viable investment strategy rents are peeling back.

the next pitch; what do you need a tenant for? they'll scratch the floors, muck up the appliances - tenants are for pikers. Vacancy is the new gold, just let it sit and appreciate.
Jr. Member
Jan 21, 2009
122 posts
33 upvotes
If rents are high now... how would investors in current pre-con rent their $1200 - $1400 / sq ft units 2 - 3 years from now?
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
mrq888 wrote: The real reason rents softened out is the AirBNB ruling passed in late november which changed the game, no more commercial AirBnb units, so most of those units got thrown back on to the long term rental market. I was running 5 Airbnb condo units and just had to pull out and rent them out to comply with the new rules
That is a factor for sure, but just temporary. Rents will be back up once that new inventory gets swallowed up. Then what? Was hoping it was just a natural decline.

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