Toronto Renters Gain upper Hand as Condo Sales Plummet
Toronto,ON – Toronto renters are finding themselves with โคincreased negotiating power as a significant slowdown in condoโข sales creates a more โฃflexible rental market. October saw condo apartment sales drop to โjust 248 units, a figure 2% below last year’s already low numbers and a dramatic 88% decreaseโค compared to teh 10-year โaverage,โฃ according to recent data. Thisโ shift โis prompting landlords across the Greater Toronto Area (GTA) to become more amenable to negotiation,โค offeringโ incentives and even loweringโ rentalโ rates to avoid vacancies.
Realโฃ estate professional Williams explains thatโ the change isn’t necessarily due to falling rentsโฃ but rather aโค recognition by landlords of the current challenges in selling their properties.โค “Landlords know that this market to sell โis maybe not the greatest for them right now. So,they are open to havingโข a conversation,ofโ coming down in price,”โ she said.
The decisionโ for landlords โคfrequently enough comesโ down toโค aโค cost-benefit โanalysis.”What’s more favourable, maybe negotiating $150, or โhaving the unit sitโ vacant for another month?” williams posed.
the trend is no longer limited to downtownโข Toronto, extending throughout the GTA. “It’s all over GTA. It’s Mississauga.โข It’s downtown โคToronto. There’s pocketsโข in Oakville,Burlingtonโฆ there’s just a lot of inventory with these condos right now,” Williams noted. Renters are also facing a more diverse landscape of rental options, including conventional investor-owned condos and purpose-built rental buildings, eachโข with itsโค own request and management processes.
So, how can renters capitalize on thisโฃ changing market? Williams stresses the importance of preparation. “The strongest leverage renters have โcome from preparation: understanding the market, knowing when similarโ units are โpriced lower, โขand presentingโ well-organized paperwork.”
Landlords โare increasingly experimenting with incentives,especially in larger buildings with numerous similar units. Williams has observed landlords waiving one orโข two months’ rent and offering complimentary internet for a fixed term to attract tenants.
However, negotiation isn’t always successful. Some landlords might potentially be constrained byโฃ financial obligations or unwillingโข to budgeโ on their desired price point. “Some landlords are just very firm in โwhat they’re โlooking for and theโค price point thatโข they want,” Williams acknowledged.
In these cases, a strong application is crucial.โข “Providing everythingโฆ theโฃ full Equifax report, the pay โstubs, the IDโฆ package it together very nicely. โฃBe strong and organized, because that in โitself gives the landlord confidence, andโ then that gives you some โขleverage when it comes to negotiating,” she advised.
Above all, renters are encouraged to prioritize a good credit score.โ “Make sure that your credit is intact; that is the number one thing they look for.”
Williams also suggestsโ openโค communication with landlords,particularly those with whom aโ positive relationship already exists. “If you have a clear, open sense ofโข communication with yourโ landlord, were you guys have been on good terms. You’ve gotten alongโฆ it doesn’t โhurtโ to ask.”