• Last Updated:
  • May 2nd, 2020 10:14 pm
[OP]
Sr. Member
Nov 25, 2008
709 posts
32 upvotes
edmonton

rental market

did you guys notice rent price go down (20% lower?) significantly for 1 bedroom in downtown Toronto?

Obviously volumes of transactions go down under social distancing.

TC
22 replies
Deal Guru
Feb 22, 2011
10127 posts
12534 upvotes
Toronto
I don't know about 20% but maybe 10-15%, which is really still a lot more than it was a couple years ago. For reference I rented out a place by union with parking in 2015 for $1750 and that was the very high end of the market. Earlier this year I probably could have gotten $2300-$2400 and now it's more like $2100ish. I gave it to a nurse acquaintance for $2000.
Deal Addict
Nov 24, 2013
1374 posts
728 upvotes
Toronto
Rents may be going below $2000 in the next month
Member
Feb 13, 2018
495 posts
531 upvotes
No one should be surprised. Vacancy will jump.
Tenants will demand lower rents and many will play the no eviction card.
Deal Guru
Feb 29, 2008
14169 posts
10489 upvotes
rfdchan wrote: No one should be surprised. Vacancy will jump.
Tenants will demand lower rents and many will play the no eviction card.
"Demand"? How cute Face With Tears Of Joy
Member
Jan 14, 2008
468 posts
262 upvotes
Toronto
i had a rental condo for lease on mls/realtor and there was no showings for a month, other than an email inquiry

on the other hand, as soon as i put it on kijiji, i was able to lease it to a strong applicant/tenant within a few days.

i do agree rent has gone down in some areas, particularly the new investor condos where there is more supply/empty units, some owners are dropping the price

so my conclusion are many of the agents are not working, hence less showings, but there are people still looking to move
Deal Guru
Feb 29, 2008
14169 posts
10489 upvotes
Why doesn’t the fact that there is a lockdown register with some people? You can’t even hire movers right now. Rents are deferred 6 months. No one is really moving unless thry have to. Wait till that 6 month deferral ends along with a lifted lockdown. We will see a lot of activity. Rent prices will take a bit of a hit short term but will stabilize eventually. Rent controls will keep rental availability tight and put upward pressure on rents...long term.

Builders still selling condos at unreasonable prices and giving rental guarantees.
Deal Fanatic
User avatar
Sep 8, 2007
9004 posts
10280 upvotes
Way Out of GTA
Unless the landlord is broke in consider holding vacant and / or considering selling once the market firms up.

Why put some new tenant in unless they are an essential worker? Or have some super solid guaranteed not to be laid off job. Once you removed landlords rights to evict and let tenants roam free.

Now the withhold your rent crowd is saying the CERB should not be used to pay landlords. Meanwhile Doug Tam Trudeau does nothing.
54B632CB-959F-492C-9711-77C84AA0B17C.jpeg
Deal Addict
Nov 24, 2013
1374 posts
728 upvotes
Toronto
Rental prices will likely come down due to simple supply and demand. Supply is going to increase due to short term rentals coming on the market and demand is going to decrease because of job losses and reduced travel.

Obviously, this will not apply to landlords with existing pre-COVID tenants that are capable of paying rent.
Member
Oct 4, 2012
270 posts
270 upvotes
Amherstview
I've noticed a few places downtown were being rented out for below what they could have been a few months back. Places that would have gone for $2000 plus are going for below $1,800. It's less than a handful of rentals though. I saw one rental with a parking spot at 33 harbour (500-600 square feet) go for $1800 a month a few days ago and there was a one bedroom in Yorkville that went for $1,600/month. The latter is likely an outlier though.

The problem with looking at the data right now is that there are so few places being rented, it seems that anyone able to actually trying to rent out a place now either have to (because they can't afford the carrying cost) or they expect a long decline and want to get ahead of the decline. The less than handful of rentals that have been leased out way under what they would have been a few months ago out suggest that it is the former. Its a renter's market now.

Rent prices in downtown Toronto will likely go down at least in the next few months. I don't see demand going up for at least the next few months and the current demand does not support the prices in Jan/Feb. We'll start see in the coming months whether service industry people who were laid off temporarily move out downtown Toronto, lowering demand and increasing supply. If companies start to embrace work from home to save money on commercial leases, this would probably decrease demand even more.

People have been prophesying a flood of long term rentals from overleveraged airbnb owners in the coming months. At this point where that supply will actually end up (whether it is the rental market or in the re-sale market). Right now, a lot of them seem to be trying to tap into the long term rental market or "longer term rentals" (6 months or less) expecting close to airbnb income.

On the other hand, there might be a minor rally driving prices up in a few months when people whose leases are expire look to move into someplace cheaper and flood the market.
Deal Addict
Dec 6, 2006
2399 posts
783 upvotes
Will have to wait 6 months to 1 year to see how things pan out.
Sr. Member
Dec 28, 2010
701 posts
294 upvotes
Toronto
JayLove06 wrote: Why doesn’t the fact that there is a lockdown register with some people? You can’t even hire movers right now. Rents are deferred 6 months. No one is really moving unless thry have to. Wait till that 6 month deferral ends along with a lifted lockdown. We will see a lot of activity. Rent prices will take a bit of a hit short term but will stabilize eventually. Rent controls will keep rental availability tight and put upward pressure on rents...long term.

Builders still selling condos at unreasonable prices and giving rental guarantees.
You can definitely hire movers right now and many are moving. Already saw couple of moving truck around our area.
Also, a friend's tenant just gave notice that they are moving to another area for a larger place (prime reason is cheaper rent) as their work will likely to continue work from home for much longer.
I think we need to look at this more than 6mnths of hiatus, this is going to change a lot of way people work. Students are giving away rental as universities are going to online for a few semesters at least.

"No one is moving, unless they have to move"- is a reason driven by their budget right now. For many a savings of $500-$1000 per month is very much worth right now. And there are deals to be had already. Moving is much easier and in favour of the tenant right now, can't do much even if breaking a lease.
Deal Guru
User avatar
Mar 31, 2008
11740 posts
2212 upvotes
Toronto
I'm still astonished to see how much has been rented in the core in the last 7 days.
Deal Addict
Jan 17, 2006
2153 posts
2266 upvotes
Toronto
Keep in mind majority so called deals are in the new buildings.
Knowing current situation people prefer to rent it out below the market, they can hike rent as much as they want on renewal.
Penalty Box
Mar 28, 2017
508 posts
340 upvotes
I would lower rent as well if the building isn't rent control. Then increase it after a year. But if the building is rent control I would rather sit and wait.
Member
Jul 4, 2018
392 posts
316 upvotes
johnnyepy666 wrote: I would lower rent as well if the building isn't rent control. Then increase it after a year. But if the building is rent control I would rather sit and wait.
Rent control is a terrible unjustified rule
What’s so special about post November 2018 properties that they can increase as much as ?
Deal Guru
Feb 29, 2008
14169 posts
10489 upvotes
Hope people see how stupid rent control (the way it’s implamented here) is. Any articles complaining about supply and demand? Didn’t think so. People keep falling for idiocy from our government.
Deal Addict
Mar 2, 2017
1385 posts
2525 upvotes
Toronto
There are definite deals to be had right now, prudent landlords know that there is an onslaught of desperate condo owners sitting with empty units and we've already seen price decreases. I've seen a couple hundred off peak pricing with some clients to get cashflow in as a lot of uncertainty still remains. Many are looking at this as an opportunity to give a discount to weather the storm over the next 12 months and reassess once we are past this. Units that get priced below "market" are usually gone within 24 hours right now.
Realtor, Investor, CPA
Deal Fanatic
Oct 7, 2007
8323 posts
4277 upvotes
If landlords aren't allowed to evict people during the virus situation and tenants don't pay their rent, what happens if after three or four months of not paying rent, the tenant just says "sorry, but I have no money". Does the landlord have any protection against that situation?
Sr. Member
Mar 10, 2004
690 posts
229 upvotes
choclover wrote: If landlords aren't allowed to evict people during the virus situation and tenants don't pay their rent, what happens if after three or four months of not paying rent, the tenant just says "sorry, but I have no money". Does the landlord have any protection against that situation?
In ontario, there is the LTB but i gather its basically useless. And with backlogs it will be even worse. So in summary, no.

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