Real Estate

Rental market strategy?

  • Last Updated:
  • Jul 22nd, 2020 2:12 pm
[OP]
Sr. Member
Nov 25, 2008
808 posts
64 upvotes
YORK

Rental market strategy?

Got one bedroom 500 sq ft brand new condo for rent near st.andrews ttc. Listed $1800 a month through agent . (Steadily lowered from $2k since May ). Note its not reached final occupancy so my agent cannot post ads on MLS . Posted on rental.ca and zumper .

Still no offer .

What would. U suggest? Don't want to low ball n get bad tenant

Thx
T
Last edited by love0715 on Jul 18th, 2020 8:43 am, edited 1 time in total.
26 replies
Deal Addict
Jul 3, 2007
4056 posts
4537 upvotes
Toronto
love0715 wrote: Got one bedroom 500 sq ft brand new condo for rent near st.andrews ttc. Listed $1800 a month through agent . (Steadily lowered from $2k since May )

Still no offer

What would. U suggest? Don't want to low ball n get bad tenant

Thx
T
what are your expenses looking like...
Deal Addict
User avatar
Mar 23, 2011
2044 posts
1125 upvotes
Etobicoke
Is it advertised anywhere other than the Mls? Not all renters use an agent to look for a rental.
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"It's better to be dead and cool...than alive and uncool!"
[OP]
Sr. Member
Nov 25, 2008
808 posts
64 upvotes
YORK
Its not on MLS because it's not reached final occupancy.

My agent posted ads on rental and zumper. I posted links to those ads on fb marketplace.
Sr. Member
Jun 19, 2007
975 posts
1054 upvotes
Halifax
love0715 wrote: Got one bedroom 500 sq ft brand new condo for rent near st.andrews ttc. Listed $1800 a month through agent . (Steadily lowered from $2k since May ). Note its not reached final occupancy so my agent cannot post ads on MLS . Posted on rental.ca and zumper .

Still no offer .

What would. U suggest? Don't want to low ball n get bad tenant

Thx
T
If there are no bites, then clearly your price is too high. I'm not sure what your question is. Does it boil down to something along the lines of "How do you get above market rent while leasing to an above average tenant?"
Sr. Member
Mar 10, 2004
819 posts
305 upvotes
I d post to kijiji and make sure ur ad is excellent. Photos are extremely important. I d also comp the area to make sure price is inline. I actually do the opposite i price lower to attract more candidates.
Sr. Member
Sep 16, 2009
685 posts
475 upvotes
What would the rent have been before covid?
Newbie
Oct 1, 2016
39 posts
33 upvotes
There are a huge number of 1-bedroom apartments for rent in this area in your price range. Until the pandemic is over and the office towers are fully populated again, I think you’ll have a hard time renting your condo.
Deal Expert
Feb 29, 2008
19097 posts
17432 upvotes
Tarrana & The Ri…
So you don't have the keys yet? Do you have pics of the unit? Honestly, best place is Kijiji but you need good pictures. Also, given the circumstances it will be harder to lease your place. Since your unit is not rent controlled, you can undercut the rent and get someone in there quickly but you can be honest with them that the rent is cheap due to the condo being in occupancy...and that you will eventually raise the rent. Think about it. What will make your place stand out over the sea of 1 bedrooms out there? Unless it's spectacular, the stand out will be price.
Sr. Member
Oct 21, 2016
946 posts
718 upvotes
Put it on Facebook market and Kijiji too , wow no takers for an 1800 for a brand new one bed , the rental market is horrible for landlords downtown very cash flow negative especially for new developments . How low will you go 1600 a month? I hope my tenant sticks around long-term he rented well before the pandemic.
Sr. Member
Nov 22, 2017
931 posts
683 upvotes
Shaun80 wrote: Put it on Facebook market and Kijiji too , wow no takers for an 1800 for a brand new one bed , the rental market is horrible for landlords downtown very cash flow negative especially for new developments . How low will you go 1600 a month? I hope my tenant sticks around long-term he rented well before the pandemic.
I think for people who want some stability in renting its a huge problem renting from a single landlord who may choose to renovict or move their family member in to get rid of you. That combined with most office towers not fully occupied by workers, its definitely a problem. Not to mention in the beginning you are probably competing with hundreds of landlords from the same building. I would say take some good pictures list on Kijiji, if no bite still begin slowly lowering price.
[OP]
Sr. Member
Nov 25, 2008
808 posts
64 upvotes
YORK
I agree and sense that $1800 is not low enough to attract tenants at this time. .But the struggle is .I don't know how low I go and worry quality of tenant goes down. .Along with the price decrease .

Not very experienced in this regard although agent is going to do credit check regardless .
Last edited by love0715 on Jul 18th, 2020 6:29 pm, edited 1 time in total.
Deal Expert
Feb 29, 2008
19097 posts
17432 upvotes
Tarrana & The Ri…
Can you provide more info? Which building is it? Does the unit have a good view? Is it generic? Hard to say what the issue is with limited info. Even though rents have gone down, we still need to know what kind of unit we're dealing with here. Not all 1 bedrooms fetch the same price. Do you have pictures of the unit? Did you read the listing the agent created? Put a listing on kijiji. I only use kijiji and have been renting properties for over a decade now.
[OP]
Sr. Member
Nov 25, 2008
808 posts
64 upvotes
YORK
We got keys ..Just cannot post on MLS because the interim occupancy was in May but not final occupancy yet .

In term of marketing, kinda hard to post on kijij they got limit for free posting.

I mainly use fb mkt place .I got some basic inquires but I redirect them to the ad below because I prefer agent to deal with viewing and questions.

My unit in 16th fl. On King blue north tower
Here is the ad:
https://rentals.ca/toronto/125-blue-jay ... bQ2Il.link
Deal Addict
Jan 9, 2010
2607 posts
2359 upvotes
A new unit right in the heart of King W and you can't even get $1800? Wow. I didn't know the market was this bad...
Newbie
Jun 4, 2010
76 posts
27 upvotes
I’m confused. You can’t advertise on MLS because it is not in final occupancy? Was this building marketed to investors? If so, I’m surprised that stipulation would be in your contract.
Last edited by Georgey on Jul 19th, 2020 2:58 am, edited 1 time in total.
Member
Oct 4, 2012
270 posts
270 upvotes
Amherstview
love0715 wrote: We got keys ..Just cannot post on MLS because the interim occupancy was in May but not final occupancy yet .

In term of marketing, kinda hard to post on kijij they got limit for free posting.

I mainly use fb mkt place .I got some basic inquires but I redirect them to the ad below because I prefer agent to deal with viewing and questions.

My unit in 16th fl. On King blue north tower
Here is the ad:
https://rentals.ca/toronto/125-blue-jay ... bQ2Il.link
I'm not really sure if what your agent told you about not being able to post on MLS is accurate. There's at least 20 rentals on MLS for King Blue.

I live in that area and the area itself is decent. By some definitions its King West, but its actually in the Entertainment district and not as hot as the Fashion District, which also has a lot of rental units that have available for some time now. The Bisha across the street makes that corner a little bit sketchier than the surrounding area, though not by much.

In terms of pricing, $1800 for a one-bedroom in that area is alright. I think its starting to slowly drop below $1800 for a 1 bedroom in that area. One of your main problems is that you're competing with a lot of units that are virtually the same in that building and some are listed for less. The listing doesn't look like its updated to reflect the current price (it reads 1850), so that may be part of your problem.

In terms of advertising, I don't know what inquiries you're getting, but I would caution you to be careful not to look like you're passing a potential renter off to someone else. I don't know if people are deterred people they are getting the (possibly wrong) impression that you don't want to give them the time of day. I would also personally be annoyed if I messaged someone about an ad, only to be re-directed to another ad. Maybe add a line in there with the ad and that any inquiries should be directed to the agent and that the agent can schedule a viewing.

I don't rent out properties, so take the foregoing with a grain of salt.
Newbie
Oct 1, 2016
39 posts
33 upvotes
This is relevant to your problem..
Toronto-area tenants are on the move again, with lease activity rebounding significantly in June from the standstill of the early COVID-19 lockdown.

Rents declined across the region and most dramatically in the Toronto core, according to a second-quarter report from market-research firm Urbanation.

An overall decline in demand and a boost to supply has helped the region’s vacancy rate continue to inch up to 1.8 per cent in the second quarter from 1.1 per cent in the first. Year over year, the second quarter vacancy rate has risen from 0.9 per cent.
Toronto rents drop in June as tenants resume moving
Deal Expert
Feb 29, 2008
19097 posts
17432 upvotes
Tarrana & The Ri…
JosephGalt wrote: I'm not really sure if what your agent told you about not being able to post on MLS is accurate. There's at least 20 rentals on MLS for King Blue.

I live in that area and the area itself is decent. By some definitions its King West, but its actually in the Entertainment district and not as hot as the Fashion District, which also has a lot of rental units that have available for some time now. The Bisha across the street makes that corner a little bit sketchier than the surrounding area, though not by much.

In terms of pricing, $1800 for a one-bedroom in that area is alright. I think its starting to slowly drop below $1800 for a 1 bedroom in that area. One of your main problems is that you're competing with a lot of units that are virtually the same in that building and some are listed for less. The listing doesn't look like its updated to reflect the current price (it reads 1850), so that may be part of your problem.

In terms of advertising, I don't know what inquiries you're getting, but I would caution you to be careful not to look like you're passing a potential renter off to someone else. I don't know if people are deterred people they are getting the (possibly wrong) impression that you don't want to give them the time of day. I would also personally be annoyed if I messaged someone about an ad, only to be re-directed to another ad. Maybe add a line in there with the ad and that any inquiries should be directed to the agent and that the agent can schedule a viewing.

I don't rent out properties, so take the foregoing with a grain of salt.
Agreed. After getting more info, the price is fine ($1800). I think OP's agents are screwing him.
Sr. Member
Nov 10, 2017
884 posts
637 upvotes
love0715 wrote: Got one bedroom 500 sq ft brand new condo for rent near st.andrews ttc. Listed $1800 a month through agent . (Steadily lowered from $2k since May ). Note its not reached final occupancy so my agent cannot post ads on MLS . Posted on rental.ca and zumper .

Still no offer .

What would. U suggest? Don't want to low ball n get bad tenant



Thx
If OP has obtained consent from the builder to lease it out during interim occupancy, to list it on MLS shouldn't be an issue.

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