Real Estate

Toronto Condo Rental Market

  • Last Updated:
  • Feb 17th, 2021 9:22 pm
[OP]
Deal Addict
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Dec 13, 2016
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Toronto Condo Rental Market

Prices of condos in Toronto don't seem to in line with rental market.

Put my place at 20% discount that I was renting pre covid. Apparently that's not enough. I think I will have to reduce it by 40% for anyone to make an offer.

If you are a "landlord" (still lol at this term) in Toronto at what point do you call it quits? Is it really not better to cash out now while prices are still reasonable than deal with low rents, Ontario rental laws and unpredictable costs that come up with rental units? I honestly think this covid thing will stretch beyond a few years with new year new strain requiring multiple vaccinations and if there is no vaccine another border shutdown for 12 months.

I am not too concerned with my 1 rental property, but what about others that have a few in their portfolio?
18 replies
Sr. Member
Jul 6, 2018
590 posts
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Those rent prices were never sustainable in the first place. 2000$/month for a 1 bedroom in a city where the median salary is 50k/year? C'mon. Toronto is a poor city without the the rich immigrants, and students and their loans.
[OP]
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Dec 13, 2016
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poopooplatter wrote: Those rent prices were never sustainable in the first place. 2000$/month for a 1 bedroom in a city where the median salary is 50k/year? C'mon. Toronto is a poor city without the the rich immigrants, and students and their loans.
I think it's not poor, but it clearly depends on foreign money.

If new strain, new year becomes a norm and governments keep shoving lockdowns down out throats, then how are these condo prices sustainable?
Deal Fanatic
Feb 22, 2011
9545 posts
11745 upvotes
Toronto
poopooplatter wrote: Those rent prices were never sustainable in the first place. 2000$/month for a 1 bedroom in a city where the median salary is 50k/year? C'mon. Toronto is a poor city without the the rich immigrants, and students and their loans.
Your perception of Toronto might be biased by your social network.
Newbie
Nov 13, 2020
32 posts
31 upvotes
Don't sleep on Toronto. Everyone wants to come here. If you can stomach negative cash flow, I'd do it.
Member
Jul 18, 2020
352 posts
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mazerbeaner wrote: Your perception of Toronto might be biased by your social network.
lol, This is so true because people with similar net worth cater to each other.
Deal Addict
Oct 27, 2012
2108 posts
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Toronto
The unit I'm a tenant in has been on the market for almost 7 weeks and there's only been 4 booked showings to date. Listed at 20% less rent than I was paying. Priced fairly for the area and building too.

Definitely not easy to distinguish yourself from the hundreds of listings within a few blocks.

Anecdotally I hear lots of investors are buying right now, most closings my lawyer is doing are for investment properties. Cost of carry is down at 1.5-1.7% rates for rental properties and they're banking on rents recovering later this year or next year, along with further price appreciation.
[OP]
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Dec 13, 2016
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jackfrags wrote: Don't sleep on Toronto. Everyone wants to come here. If you can stomach negative cash flow, I'd do it.
Everyone wants to come to many places and no one is being let in. Toronto is not in this unique situation.
Deal Guru
Feb 29, 2008
13854 posts
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Really have to wait till downtown opens up. If it remains closed then rents will remain low...although I think rents have hit a floor.
Sr. Member
Jul 6, 2018
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jackfrags wrote: Don't sleep on Toronto. Everyone wants to come here. If you can stomach negative cash flow, I'd do it.
That's called gambling.
Deal Addict
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Apr 12, 2013
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Markham
As mentioned before, offer two months free on a 12 month lease. Thats how you can get your unit rented out while circumventing the rent controlled rules.
[FS] BNWT Bellfield Faux Fur Trim Parka

Koodo, Public Mobile, Lucky Mobile Customer
Newbie
Aug 18, 2015
81 posts
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Toronto, ON
Are the newer buildings rent controlled? I am thinking of renting it out for less and maybe bump up the rent after the lease ends?
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Apr 12, 2013
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addictivemate wrote: Are the newer buildings rent controlled? I am thinking of renting it out for less and maybe bump up the rent after the lease ends?
Built after nov 2018 = not rent controlled. If you arent rent controlled then do as you please.
[FS] BNWT Bellfield Faux Fur Trim Parka

Koodo, Public Mobile, Lucky Mobile Customer
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Jul 6, 2018
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kangarooz wrote: Built after nov 2018 = not rent controlled. If you arent rent controlled then do as you please.
Until the next Liberal government comes to power.
Deal Addict
Oct 27, 2012
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Toronto
Well bugger me - my landlord was able to rent the unit out after all! Lucky guy in these trying times! Though I do see it went for below 2015 rent...
Sr. Member
Dec 28, 2010
677 posts
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Toronto
poopooplatter wrote: Those rent prices were never sustainable in the first place. 2000$/month for a 1 bedroom in a city where the median salary is 50k/year? C'mon. Toronto is a poor city without the the rich immigrants, and students and their loans.
From where do you pull such numbers ?
Lived in downtown 1bedroom + den and paid 2100 right near Harbourfront. Most people in my building were well to do professionals, nice cars in parking spots, many with kids and pets ...not many students or foreign money.
Just search for a list of employers in the city and average salaries. It's not that all rich live in suburbs, not yet.
Member
Oct 4, 2012
259 posts
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Amherstview
ozzie16 wrote: Well bugger me - my landlord was able to rent the unit out after all! Lucky guy in these trying times! Though I do see it went for below 2015 rent...
You've told us so much about how hard it's been for him/her I feel like we've all been rooting for him/her lol
Member
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Apr 9, 2007
234 posts
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Toronto, ON
Karma2000 wrote: From where do you pull such numbers ?
Lived in downtown 1bedroom + den and paid 2100 right near Harbourfront. Most people in my building were well to do professionals, nice cars in parking spots, many with kids and pets ...not many students or foreign money.
Just search for a list of employers in the city and average salaries. It's not that all rich live in suburbs, not yet.
Toronto financial district resident median household income is >$100,000/yr. $2000/mo for a condo is not a problem. The average resident in Toronto doesn't live downtown, @poopooplatter - it's like complaining that the average GTA income earner can't afford the average mansion in Rosedale. Apples and oranges..

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