Toronto Renters Gain upper Hand as Condo Sales Plummet
Toronto,ON – Toronto renters are finding themselves with increased negotiating power as a significant slowdown in condo sales creates a more flexible rental market. October saw condo apartment sales drop to just 248 units, a figure 2% below last year’s already low numbers and a dramatic 88% decrease compared to teh 10-year average, according to recent data. This shift is prompting landlords across the Greater Toronto Area (GTA) to become more amenable to negotiation, offering incentives and even lowering rental rates to avoid vacancies.
Real estate professional Williams explains that the change isn’t necessarily due to falling rents but rather a recognition by landlords of the current challenges in selling their properties. “Landlords know that this market to sell is maybe not the greatest for them right now. So,they are open to having a conversation,of coming down in price,” she said.
The decision for landlords frequently enough comes down to a cost-benefit analysis.”What’s more favourable, maybe negotiating $150, or having the unit sit vacant for another month?” williams posed.
the trend is no longer limited to downtown Toronto, extending throughout the GTA. “It’s all over GTA. It’s Mississauga. It’s downtown Toronto. There’s pockets in Oakville,Burlington… 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, each with its own request and management processes.
So, how can renters capitalize on this changing market? Williams stresses the importance of preparation. “The strongest leverage renters have come from preparation: understanding the market, knowing when similar units are priced lower, and presenting well-organized paperwork.”
Landlords are increasingly experimenting with incentives,especially in larger buildings with numerous similar units. Williams has observed landlords waiving one or 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 by financial obligations or unwilling to budge on their desired price point. “Some landlords are just very firm in what they’re looking for and the price point that they want,” Williams acknowledged.
In these cases, a strong application is crucial. “Providing everything… the full Equifax report, the pay stubs, the ID… package it together very nicely. Be strong and organized, because that in itself gives the landlord confidence, and then that gives you some leverage when it comes to negotiating,” she advised.
Above all, renters are encouraged to prioritize a good credit score. “Make sure that your credit is intact; that is the number one thing they look for.”
Williams also suggests open communication with landlords,particularly those with whom a positive relationship already exists. “If you have a clear, open sense of communication with your landlord, were you guys have been on good terms. You’ve gotten along… it doesn’t hurt to ask.”
