Toronto Condo Rental Market

Feb 16th, 2021 8:33 pm

#1

BiegeToyota [OP]: Deal Addict; Dec 13, 2016; 3694 posts; 3190 upvotes

Feb 16th, 2021 8:33 pm

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?

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Feb 16th, 2021 8:51 pm

#2

poopooplatter: Sr. Member; Jul 6, 2018; 590 posts; 1000 upvotes

Feb 16th, 2021 8:51 pm

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.

+1

Feb 16th, 2021 9:07 pm

#3

BiegeToyota [OP]: Deal Addict; Dec 13, 2016; 3694 posts; 3190 upvotes

Feb 16th, 2021 9:07 pm

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?

Feb 16th, 2021 9:09 pm

#4

mazerbeaner: Deal Fanatic; Feb 22, 2011; 9545 posts; 11745 upvotes; Toronto

Feb 16th, 2021 9:09 pm

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.

+11

Feb 16th, 2021 9:14 pm

#5

jackfrags: Newbie; Nov 13, 2020; 32 posts; 31 upvotes

Feb 16th, 2021 9:14 pm

Don't sleep on Toronto. Everyone wants to come here. If you can stomach negative cash flow, I'd do it.

+1

Feb 16th, 2021 9:26 pm

#6

lechan: Member; Jul 18, 2020; 352 posts; 538 upvotes

Feb 16th, 2021 9:26 pm

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.

+5

Feb 16th, 2021 9:29 pm

#7

ozzie16: Deal Addict; Oct 27, 2012; 2108 posts; 3265 upvotes; Toronto

Feb 16th, 2021 9:29 pm

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.

+6

Feb 16th, 2021 9:31 pm

#8

BiegeToyota [OP]: Deal Addict; Dec 13, 2016; 3694 posts; 3190 upvotes

Feb 16th, 2021 9:31 pm

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.

Feb 16th, 2021 9:33 pm

#9

JayLove06: Deal Guru; Feb 29, 2008; 13854 posts; 10100 upvotes

Feb 16th, 2021 9:33 pm

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.

+3

Feb 16th, 2021 9:57 pm

#10

poopooplatter: Sr. Member; Jul 6, 2018; 590 posts; 1000 upvotes

Feb 16th, 2021 9:57 pm

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.

Feb 16th, 2021 10:17 pm

#11

kangarooz: Deal Addict; Apr 12, 2013; 1847 posts; 802 upvotes; Markham

Feb 16th, 2021 10:17 pm

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

Feb 17th, 2021 12:07 am

#12

addictivemate: Newbie; Aug 18, 2015; 81 posts; 41 upvotes; Toronto, ON

Feb 17th, 2021 12:07 am

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?

Feb 17th, 2021 12:12 am

#13

kangarooz: Deal Addict; Apr 12, 2013; 1847 posts; 802 upvotes; Markham

Feb 17th, 2021 12:12 am

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

Feb 17th, 2021 5:38 am

#14

poopooplatter: Sr. Member; Jul 6, 2018; 590 posts; 1000 upvotes

Feb 17th, 2021 5:38 am

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.

Feb 17th, 2021 6:40 am

#15

JayLove06: Deal Guru; Feb 29, 2008; 13854 posts; 10100 upvotes

Feb 17th, 2021 6:40 am

poopooplatter wrote: ↑ Until the next Liberal government comes to power.

Came in to say this. And it will happen.

+1

Feb 17th, 2021 3:50 pm

#16

ozzie16: Deal Addict; Oct 27, 2012; 2108 posts; 3265 upvotes; Toronto

Feb 17th, 2021 3:50 pm

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...

+2

Feb 17th, 2021 5:28 pm

#17

Karma2000: Sr. Member; Dec 28, 2010; 677 posts; 275 upvotes; Toronto

Feb 17th, 2021 5:28 pm

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.

+1

Feb 17th, 2021 6:41 pm

#18

JosephGalt: Member; Oct 4, 2012; 259 posts; 248 upvotes; Amherstview

Feb 17th, 2021 6:41 pm

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

+1

Feb 17th, 2021 9:22 pm

#19

tczernec: Member; Apr 9, 2007; 234 posts; 557 upvotes; Toronto, ON

Feb 17th, 2021 9:22 pm

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..

+2