Selling a house looks easy from the outside.

You sign some paperwork, take some photos, put the home on MLS, have a few showings, receive an offer, and then wait for closing.

If that was all it took, then real estate agents would be hanging out with travel agents and milk delivery men and lamenting the passage of time.

The real version has a lot more going on.

A successful sale involves pricing, paperwork, preparation, photography, marketing, showings, agent outreach, feedback, offer strategy, conditions, lawyers, deposits, closing details, and a surprising number of small things that can go sideways if nobody is paying attention.

So, what does it really take to sell a house?

Let’s get into it.

#1 – First, We Need to Understand the Property

Before anything is listed, signed, or photographed, we need to understand what we are actually selling.

That sounds obvious, but it is where a lot of mistakes start. A house is not worth a certain amount just because a similar-looking house sold nearby. Buyers care about details, and those details can change the result.

At this stage, we are looking at things like:

• Property type
• Neighbourhood
• Lot
• Condition of the home
• Recent comparable sales
• Current competition
• Active listings
• Expired listings
• Buyer demand
• Timing
• Likely buyer objections
• Whether repairs or preparation make sense
• Whether the home has features that need to be explained properly

This is also where we talk about the seller’s goals.

Some sellers want the highest possible price and are willing to do more preparation. Some need a particular closing date. Some want the least disruption possible. Some are selling a vacant property and can be more flexible with timing and showings. Some are living in the home with children, pets, work schedules, and actual lives that need to be managed.

The strategy should match the seller, not just the house.

#2 – Then We Build the Pricing Strategy

 Pricing is not just picking a number that feels good.

A proper pricing strategy should answer three questions:

1. What is the property likely worth?
2. How will buyers see it compared to the competition?
3. What listing strategy gives the seller the best chance of a strong result?

That usually means reviewing:

• Comparable sold properties
• Current active listings
• Similar homes that failed to sell
• Market direction
• Days on market
• Sale-to-list ratios
• Buyer behaviour in that price range
• Whether offer dates are working
• Whether buyers are negotiating aggressively
• Whether the property should be priced at market value or positioned more aggressively

This is where the valuation work matters. It is not just a stack of comparable sales. It is the basis for the actual plan.

The wrong price can cost a seller money in two different ways. Price too low without a real strategy and you may leave money on the table. Price too high and the listing can sit, become stale, and eventually require a price reduction.  Do either of those two sound ideal to you?

#3 – Paperwork Starts Earlier Than Most Sellers Expect

 Once the seller decides to move forward, the paperwork begins.

This part is not exciting, but it matters. A listing is a legal relationship, and the documents need to be accurate.

Seller paperwork may include:

• Listing agreement
• RECO Information Guide
• FINTRAC identification forms including Politically exposed person forms
• MLS data forms
• Schedules and clauses
• Brokerage documents
• Disclosure documents, where applicable
• Condo-related documents, where applicable
• Spousal consent, where required
• Special instructions about inclusions, exclusions, access, or commission

Details need to be checked carefully, including:

• Seller legal names
• Property address
• Ownership details
• Listing price
• Commission, including Co-operating brokerage commission
• Listing start date
• Listing expiry date
• Holdover period
• Included items
• Excluded items
• Special terms
• Signatures and initials

This is one of those areas where sellers usually only notice the work if something goes wrong.

A typo in a name, a wrong date, a missing initial, an unclear inclusion, or a poorly drafted schedule can create real problems later. Good paperwork does not sell the house by itself, but bad paperwork can absolutely make the sale harder than it needs to be.

#4 – The Home Has to Be Prepared Before It Goes Public

 A good listing launch does not happen on listing day. It happens before listing day.

Before the home goes live, there is often a preparation stage. Depending on the property, that can include:

• Repairs
• Painting
• Cleaning
• Window cleaning
• Landscaping
• Decluttering
• Staging
• Handyman work
• Pre-list inspection
• Floor plan preparation
• Condo status certificate ordering
• Sign installation
• Lockbox installation
• Key organization
• Access planning
• Showing instruction planning

This does not mean every seller should spend a fortune preparing their home.

Some improvements are worth doing. Some are not. The goal is to decide what will actually help the sale.

There is a big difference between spending money to improve the result and spending money because everyone feels vaguely anxious before listing. The first one is strategy. The second one is just expensive stress.

#5 – The Listing Calendar Needs to Be Managed

Selling a house involves a lot of scheduling. Like, a lot of scheduling.

Before the listing goes live, the timing needs to be coordinated for:

• Cleaners
• Painters
• Repairs
• Staging
• Photography
• Video
• Floor plans
• Sign installation
• Pre-list inspection
• Open houses
• MLS launch
• Offer date, if there is one
• Status certificate timing, for condos
• Showing availability

If one step is delayed, it can affect everything else.

For example, if the cleaners are late, the photos may need to be moved. If the photos are delayed, the MLS launch may need to be pushed. If the MLS launch moves, the open house timing may change. If the offer date changes, the whole marketing plan may need to be adjusted.

This is why a good listing process has a calendar, not just a vague hope that everything will somehow come together.

#6 – Photography, Video and Floor Plans Are Not Just “Marketing Extras”

Most buyers see the home online before they ever see it in person.

That means photography, video, floor plans, and listing presentation matter.

This stage can include:

• Booking professional photography
• Preparing the home for photos
• Reviewing the photos
• Selecting the best MLS photos
• Putting the photos in the right order, so it makes sense to someone clicking through
• Checking the virtual tour
• Reviewing the floor plans
• Making sure the marketing reflects the property accurately
• Preparing feature sheets
• Preparing social media material
• Preparing agent outreach material

The goal is not to make the house look like something it is not. That just creates disappointment at showings.  Believe it or not, if a buyer and their agent shows up to find that the listing agent “tweaked” photos and catfished you into the showing, the result isn’t an eager buyer ready to submit an offer.

The goal is to show the property at its best, make the layout easy to understand, highlight the right features, and give buyers a reason to book a showing.

Bad photos can make a good house look forgettable. Good photos cannot fix a bad property, but they can make sure the right buyers actually notice it.

#7 – The MLS Listing Has to Be Built Carefully

The MLS listing is where a lot of buyers and agents form their first real opinion of the property.

It needs to be accurate, complete, and strategic.

That means checking:

• Price
• Address
• Property type
• Taxes
• Lot size
• Room measurements
• Bedrooms
• Bathrooms
• Parking
• Locker information, if applicable
• Condo fees, if applicable
• Inclusions
• Exclusions
• Rental items
• Showing instructions
• Offer instructions
• Remarks
• Attachments
• Schedules
• Photos
• Floor plans
• Virtual tour links

This is also where we need to avoid creating confusion.

If the listing says one thing and the feature sheet says another, buyers notice. If the room measurements are wrong, agents notice. If the inclusions are unclear, it can become an issue during negotiations.

The MLS listing is not just data entry. It is the public version of the sale.

#8 – Listing Day Is a Launch, Not a Button

 Listing day is when the property officially hits the market, but there is more to it than pressing “submit.”

On listing day, the following needs to be checked:

• MLS listing is live
• Realtor.ca is displaying properly
• Photos are showing correctly
• Virtual tour link works
• Showing instructions are correct
• Lockbox is installed and working
• Seller is receiving showing notifications
• Showing system is configured properly
• Sign is installed
• Marketing materials are ready
• Brokerage and agent promotion is underway
• Open house information is correct, if applicable

This is also when the seller should receive the key links and information, including:

• MLS listing link
• Realtor.ca link
• Virtual tour link
• Showing instructions
• Sign photo, where relevant
• Open house details, if planned

A bad launch can waste the first and most important days of market exposure.

That does not mean every listing sells in the first few days. It means that when a listing goes live, it should be ready.

#9 –  Showings Are…Challenging

 Showings can become the biggest pain point for sellers, especially if they are still living in the property.

When the home is on the market, sellers may be dealing with:

• Last-minute showing requests
• Buyers arriving late
• Agents cancelling
• Overlapping appointments
• Requests during dinner
• Requests during work calls
• Requests during children’s nap times
• Pets that need to be removed
• Lights, doors, and alarms
• Cleaning before every appointment
• Keeping the house looking ready all the time

For someone selling privately, this can become exhausting very quickly.

A showing plan needs to answer practical questions, including:

• When are showings allowed?
• How much notice is required?
• Are showings automatically confirmed or manually approved?
• Are there any blocked-off times?
• How do agents access the property?
• Where is the lockbox?
• What should agents know before entering?
• Are there pets?
• Should lights be left on or off?
• Should shoes be removed?
• Are there alarm instructions?
• Are there rooms, doors, gates, or garages with special instructions?
• Can showings overlap?
• How is feedback collected?
• What happens if a buyer wants a second showing?

This matters because access affects results.

If a property is too hard to show, some buyers will skip it. If showings are completely unmanaged, the seller may feel like they are living in a hotel lobby.

The goal is to make the home easy enough to see without making the seller’s life miserable.

#10 – Showing Feedback Has to Be Tracked and Interpreted

Once showings begin, the market starts giving feedback.

That feedback is not always direct, and it is not always useful, but it needs to be reviewed.

We are looking at things like:

• How many showings are happening
• How quickly buyers are booking
• Whether buyers are coming back for second showings
• What agents are saying
• What buyers are objecting to
• Whether the price is being questioned
• Whether the condition is being questioned
• Whether the layout is causing concern
• Whether the location is a sticking point
• Whether buyers are comparing it to another property
• Whether new competition has appeared
• Whether similar homes have sold

The important part is not to overreact to one random comment.

One buyer saying the kitchen is small may mean nothing. Ten buyers saying the kitchen is small probably means something. No showings at all means something else entirely.

A listing should not just sit online while everyone hopes for the best. It needs to be actively managed.

#11–  Weekly Updates Keeps Everyone Informed

A seller should not have to wonder what is happening.

During the listing, there should be regular updates on:

• Showing activity
• Buyer feedback
• Agent feedback
• Competing listings
• Recent sales
• Changes in market conditions
• Open house results
• Online activity, where useful
• Whether the current strategy is working
• Whether a change is needed

This is where the conversation needs to be honest.

If the listing is getting good showings but no offers, that tells us one thing. If it is getting very few showings, that tells us something else. If buyers are repeatedly objecting to the same issue, we need to deal with that reality.

Sellers do not need cheerleading. They need useful information.

#12 – Open Houses and Agent Outreach Still Matter

Open houses are not magic, but they can be useful.

Depending on the property, the strategy may include:

• Public open houses
• Agent open houses
• Brokerage promotion
• Email promotion to agents
• Social media promotion
• Direct outreach to agents with active buyers
• Follow-up with agents who have shown the property

The point is not simply to say, “We did an open house.”

The point is to increase exposure, collect feedback, create urgency, and make sure the right buyers and agents know the property exists.

Sometimes open houses directly produce the buyer. Sometimes they help create momentum. Sometimes they reveal that buyers are reacting differently than expected.

All of that is useful.

#13 – Sometimes the Strategy Needs to Change

Not every property sells right away.

That does not automatically mean something went wrong, but it does mean the strategy needs to be reviewed.

Possible adjustments may include:

• Changing the price
• Updating the photos
• Changing the order of photos
• Revising the MLS remarks
• Changing showing instructions
• Improving access
• Refreshing marketing materials
• Increasing agent outreach
• Following up with previous showings
• Relisting, where appropriate
• Changing the offer strategy
• Dealing with a condition or objection that keeps coming up

A stale listing is not usually fixed by ignoring it.

The market is allowed to disagree with the original plan. When it does, the seller needs clear advice on what to do next.

#14 – Offers Are About More Than Price

When an offer comes in, price is important, but it is not the only thing that matters.

A seller needs to understand the full offer, including:

• Purchase price
• Deposit amount
• Closing date
• Conditions
• Inclusions
• Exclusions
• Irrevocable time
• Buyer financing risk
• Inspection terms
• Status certificate terms, for condos
• Sale of buyer’s property condition, if included
• Unusual clauses
• Missing schedules
• Mistakes or unclear wording

The seller also needs advice on the strategy:

1. Accept the offer.
2. Reject the offer.
3. Sign the offer back.
4. Wait for another offer, if that is realistic.
5. Use the offer to create leverage, if the rules and circumstances allow it.

The best offer is not always the highest offer.

A slightly lower firm offer with a strong deposit and clean closing may be better than a higher conditional offer with weak terms. It depends on the seller’s priorities and the risk in the offer.

#15 – Conditional Sales Need to Be Managed Carefully

If the property sells conditionally, it is not sold firm yet.

Common buyer conditions include:

• Financing
• Home inspection
• Insurance
• Lawyer review
• Status certificate review
• Sale of the buyer’s property

During the conditional period, someone needs to track:

• Condition deadlines
• Deposit receipt
• Required documents
• Access for inspections
• Access for appraisals
• Status certificate delivery, if applicable
• Notices of fulfillment
• Waivers
• Amendments
• Communication with the buyer’s agent
• Whether the deal is becoming firm or falling apart

This is a time-sensitive part of the process.

If the buyer waives or fulfills the conditions properly, the deal becomes firm. If they do not, the property may need to go back on the market.

That is why the details matter.

#16 –  Sold Firm Is Not the Same as Finished

Once the deal is firm, the seller can breathe a little easier, but the work is not done.

After a firm sale, the process may include:

• Marking the property sold
• Confirming the deposit
• Updating showing instructions
• Changing lockbox access
• Installing a sold sign or sold rider
• Removing or collecting marketing materials
• Sending paperwork to the lawyers
• Confirming seller and buyer lawyer details
• Arranging purchaser visits
• Preparing closing instructions
• Organizing signed documents
• Preparing internal trade and brokerage paperwork
• Tracking the closing date

This stage is less visible to the public, but it is still important.

Remember, a firm sale still needs to close!

#17 – Purchaser Visits and Closing Preparation Need Organization

Most agreements allow the buyer to visit the property before closing.

Those visits need to be scheduled and managed. They may be used for:

• Measuring rooms
• Getting contractor quotes
• Showing family members
• Planning furniture
• Checking the property before closing

The seller also needs to prepare for closing by dealing with:

• Keys
• Fobs
• Remotes
• Mail keys
• Alarm codes
• Appliance manuals
• Warranties
• Rental contracts
• Utility accounts
• Moving arrangements
• Final cleaning
• Vacant possession, where required
• Any agreed repairs or items

This is where organization matters.  Nobody wants to be searching for a garage remote or condo fob at the last minute.

#18 – Closing Day Is a Legal Event, Not Just Moving Day

On closing day, the lawyers complete the transfer.

The buyer’s funds are sent. The seller’s lawyer deals with payouts, adjustments, title transfer, and release of keys. Once the deal has officially closed, the property belongs to the buyer.

The seller should not hand over keys directly unless instructed to do so by the lawyer or unless the proper process has been arranged.

Closing day can feel simple if everything has been prepared properly. If it has not, it can be stressful.

The key things to confirm are:

• Lawyer has what they need
• Property is ready for vacant possession, if required
• Keys and access items are ready
• Seller understands when property is officially closed
• Funds have been received
• Final adjustments are handled by the lawyers

Once the lawyer confirms closing, the sale is complete.

#19 – Even After Closing, There Are Still Final Details

After closing, there are still a few loose ends.  These may include:

• Confirming the transaction closed
• Confirming funds were received
• Confirming commission and brokerage paperwork
• Saving final documents
• Sending the seller a transaction summary with all the documents of the sale in one place
• Updating client records
• Following up after the move to ensure no questions or issues remain

The seller should also keep a record of:

• Agreement of purchase and sale
• Amendments
• Waivers or notices of fulfillment
• Lawyer closing documents
• Statement of adjustments
• Commission statement
• Receipts for moving or sale-related expenses, where relevant

The house may be sold, but the paperwork should not disappear into the abyss.

As we hope the above lengthy list of activities shows, selling a house is not one job. It is a long list of connected jobs, and each one affects the next.

A good sale depends on:

1. Pricing the property properly
2. Preparing it intelligently
3. Launching it cleanly
4. Managing showings without chaos
5. Tracking feedback honestly
6. Marketing it effectively
7. Negotiating aggressively
8. Managing conditions and deadlines
9. Coordinating lawyers and closing details
10. Keeping the seller informed throughout the process

It’s true that from the outside, selling a house can look like putting a sign on the lawn and waiting for a buyer.  Sadly, some sellers have experienced such a haphazard approach and the results are always less than optimal.

Our clients choose to work with us to sell their homes because they get that there is a lot happening behind the scenes. Our goal is not just to get the home sold. Our goal is to minimize the possibility of mistakes, manage the stress, protect our seller client, and get the best result possible.  If that sounds appealing to you, then get in touch with us to talk further!

Every couple of years we seem to see Toronto increasing their municipal land transfer tax (LTT) on luxury properties.  It happened back in 2024, when increased rates were imposed upon sales in Toronto of properties over $3M, and it’s just happened again.

As of April 1, 2026, we have new rates for the LTT on the sale of properties over $3M in Toronto.  The provincial land transfer tax has not made any similar changes at any point, but the city of Toronto is rapidly increasing the cost to buy within the Toronto boundaries.

We looked at the anticipated increased revenue the city would make when they did this back at the start of 2024, we said they’d bring in about $27M in additional revenue as a result of the increases.  That sounds like a pretty significant amount, but keep in mind that back in late 2023, the City of Toronto’s updated Long Term Financial Plan and staff report showed an estimated $1.5 billion starting pressure for the 2024 operating budget and $29.5 billion in capital needs, which both form part of a $46.5 billion shortfall over the next 10 years.  The forecasted $27M would have brought in less than 2% of the amount needed to address the operating budget shortfall.

Given the city remains in difficult financial circumstances, it is clear that the increased tax didn’t help in a material fashion.  The latest increase is actually going to be far less impactful, as it is mostly increases of around 1%  for those higher price bands.

Let’s look at the new changes and how much additional money it could bring in – plus how many deals need to be lost as buyers decide to purchase their high end homes outside of the city.

Apples to apples.

We’re primarily focused on resale properties in our team and the data we can access is largely limited to residential resale properties.  As such, all of our analyses below are based on that data.   We’re after some broad (but accurate) implications of the new LTT rates, but we aren’t considering:

• non-MLS transactions
• builder/direct new-home and new-condo closings
• commercial / industrial / multi-residential / vacant land transfers
• other taxable conveyances the City records but that do not show up in our records

While some of the specific numbers of the implications of the new LTT rates will be understated, our analysis does paint a clear picture of what it means to the resale market.  Now that we’re officially covered, let’s get into it.

First, a history lesson.

We’ve created a handy chart to show the recent history of the Toronto Land Transfer Tax.  The orange column is what it was for about six years, and the blue columns show the rate increase amount that was put into place as of January 1, 2024.  The green column is the brand new rate increase amounts that apply to properties bought in the city as of April 1, 2026.

There have been no changes made to the land transfer tax due on the purchase of any properties up to $3M, but if you’re at that level or higher, we saw it go from a flat rate of 2.5% on any amount above the $3M level, to a graduated system.  The higher the price point, the higher the rate you’re paying on that portion of your purchase.

The latest round of increases have added about 1% to most of the price bands, with a range from 0.9% to up to 1.1%.

It’s all marginal.

A reminder that the land transfer tax is a marginal tax bracket, which means that for any price above a threshold, you pay:

• The full tax from all lower brackets
• Plus the tax on the portion that falls inside the current bracket

For example, a $1.2 million purchase does not pay 2.0% on the full $1.2 million. Instead, it pays:

• 5% on the first $55,000 = $275
• 0% on the next $195,000 = $1,950
• 5% on the next $150,000 = $2,250
• 0% on the remaining $800,000 = $16,000
• Which would bring the total municipal land transfer tax to $20,475.

This is relevant as we look at what impact these higher tax brackets will have on the sales taking place moving forward.

The past ain’t the future.

A caveat we often give is that what happened in the past is not necessarily indicative of what will happen in the future.  That being said, we need to base our analysis on certain assumptions, so the big assumption in our analysis here is that we’ll see similar types of transactions and numbers of transactions in 2026 as we did in 2025.  Here’s how the 23,475 sales in the city of Toronto were spread across the various price bands.

A few things about the above data are very relevant to our review.

First, 97% of the sales that took place in Toronto in 2025 were under $3M, which means the change that just took place is utterly irrelevant to those sales.  The Toronto LTT rate for these properties has not changed since 2017 and they can go merrily about their business.

The next thing worth pointing out is that the 740 sales that were in the $3M plus price bands last year were mostly in the $3M to $5M range.  59% of the sales were in the $3M to $4M band and another 22% were in the $4M to $5M band, so over 80% of the sales were in that $3M to $5M range.

If we assume that 2026 will see a similar spread of deals as we saw in 2025, how are these higher land transfer tax rates in those price bands going to bring in to the city in increased revenue?

It’s more, but it’s not a lot more.

We pulled the average price for each of the price bands for the sales in 2025 and then calculated the Toronto LTT for each of those bands.  This is relying on averages within each price band so it will not be 100% accurate, but it is enough to give us an idea of what 2026 will look like for increased revenue with the new increased LTT rates.

The city would have brought in about $450M in municipal land transfer tax in 2025 based on these sales.  With the new higher rates for the higher end price points, that means an estimated revenue for 2026 of about $458M, which works out to about $8M more in land transfer tax revenue for the city.

As we see very few sales at the $5M or above price point, the bulk of this $8M comes from sales in the $3M to $5M range.

$8M is still better than a kick in the pants, right?

The final aspect of the new LTT tax rates worth discussing is the fact that our model makes the assumption that the same level of sales take place in Toronto despite increasing costs for those buyers.  While it may be unlikely that a lower price point buyer will choose to buy outside of the city to save on the land transfer tax, we have had clients who considered the difference in closing costs significant.

At the higher price points that this latest round of LTT rate increases impacts, the difference between what you pay in Toronto versus surrounding municipalities amounts to significant dollars.

For example, a $5 million buyer in Toronto would pay about $272K in total LTT, of which $112K is the provincial portion.  If the buyer chose to purchase instead in another city such as Oakville, they would save $160K on their closing costs.  That’s a significant amount of money and while the latest increase in Toronto’s LTT rates doesn’t materially change the amount they pay, it is reaching levels that could result in some buyers deciding they’d rather put that money into a home purchase outside of Toronto.

While it is complicated to project how many lost deals it would take for the city to not see that projected $8M increased LTT from high end sales, we know that any purchase that moves outside of the city loses the entirety of the MLTT, not just the portion at the higher end.  Our calculation is that it would take about 67 of these high end deals leaving the city for that projected $8M in extra LTT revenue to disappear completely.

We regularly work with buyers and sellers impacted by decisions like this latest Toronto LTT rate increases, and it’s important that your agent understands the factors that influence the high end and luxury market in the city.  If you’re looking to buy or sell in the $3M plus range and want agents that understand how that segment actually works, get in touch!

It’s pretty well known that real estate agents are somewhat prone to hyperbole.  We’ve written in the past about the secret codewords that agents use to try to convince buyers a home is appealing.

While people are pretty good at seeing past the flowery phrases dressing up the listing, it can be much harder to decipher the differences between two seemingly similar properties.  After all, numbers don’t lie, right?

So, numbers can lie.

Real estate is full of numbers and while the price is arguably the most important one, lots of the other numbers aren’t always what they seem.  Consider the following examples:

• Two 4-bedroom homes, where one has three good-sized bedrooms on the 2^nd floor and a spare bedroom (or den) on the ground floor. Suitable for a family with young kids, closets in all the rooms and able to fit beds, dressers and so forth.  The other property has one huge bedroom on the 2^nd floor, with massive walk in closets and a spa bathroom retreat and three smallish “bedrooms” in the basement, one of which has no windows.  Great for a couple with no kids who want hobby rooms in the basement.
• Two 785 sf condo units, each with two bedrooms and two washrooms. The first is a rectangular shaped split wing layout with two 10×12 bedrooms at either end of the condo, with ensuite washrooms off both, one of which opens to the hallway so guests can access it without going through a bedroom.  The other is a small L shape, with a full bathroom right beside the entrance door, a hallway leading down to a small bedroom with an angled wall, and a primary suite beside it with the washroom took into the other side of the angled wall.

Two properties can appear nearly identical on paper if you look at just the numbers, but there are often considerable differences between them when you look closer.

According to Webster’s Dictionary…

Numbers aren’t the only area where seemingly identical properties can differ significantly.  We have some standards that apply to how real estate agents can describe different attributes, but they aren’t always followed to the letter.  Some agents consider a kitchen “newly” renovated if it happened in the last five years, whereas others follow the more stringent approach of it literally just got renovated before we listed the home for sale.

While flat out misrepresentation is relatively rare, people can hold very different definitions of what certain descriptions mean.  Where do you fall on the below scales?

• Is a walk-in closet a large room with a dressing bench in the middle and custom shelving on all sides, or is a walk in closet any closet that has enough space for you to walk inside and cuddle your clothes?
• Is a family size kitchen a big room with tons of cabinetry, an extended island with spots for stools, as well as a separate eating area with a kitchen table? Or is it a narrow galley style that has a bistro table and two small chairs at the end beside the dishwasher?
• Are high-end appliances delivered from Europe and installed by a team of four who wear white booties when they enter your home, or are they a mismatched group of premium versions of different appliance brands that you see in most homes?
• Is the only hardwood that can be called hardwood flooring actual hardwood such as oak, hickory or maple, or is engineered hardwood with a thin layer of hardwood veneer also hardwood flooring?

We could go on and on, but when no specific details are provided on any claimed “feature” of a home, it is likely there are big differences between two listings who both claim they have it.

Where did I put my glasses?

Finally, there are homes that seem to have identical features as per the listing, but it turns out that not all things are created equal.  Which would you prefer?

• If you’re invited to enjoy your private backyard oasis with a pool and hot tub, do you envision an inground pool, with a hot tub section you can swim into from the pool? What if it is an aboveground pool with a hot tub in a different section of the backyard?
• Is it a media room if there are couches (that don’t come with the house) and a first generation low resolution digital projector (that is generously being included), or is a media room a custom built space with built-in furniture, sound baffling and a state of the art video and audio system?
• If both properties have a balcony, does it make a difference if one faces the Gardiner and is loud and dusty all year round, whereas the other faces the lake and views of the setting sun?

The above examples may seem pretty far fetched but trust us, they have all happened.  The quality, age and inclusions in a given attribute can make a huge difference in the value – or lack thereof – to potential buyers.

We’ve looked at a lot of properties for our clients and with our clients.  If we had to estimate the numbers, it would be somewhere between “too many” and a bazillion.  As a result, we’re very good at spotting differences that the numbers and images may not make clear to the general public.

This is surprisingly relevant on the sale side work we do, as a big part of setting your list price is comparing your home against other properties.  We often encounter situations where we see significant differences between our seller’s home and the recently sold and currently on the market competition.  This allows us to make sure we don’t leave money on the table, or mistakenly over price and not get the result our clients need.

If you’re looking to make a move and want to work with agents who know what to look for when comparing properties, get in touch with us!

As we continue to face a housing affordability struggle in the GTA and beyond, it’s important to look at alternative models of ownership that can help people find a home of their own.

One model that is pretty misunderstood are land lease properties.  As the name indicates, it is where you own a home but you’re just leasing (renting) the land that it sits upon.  It’s a misunderstood option and we thought we’d clear up some of the confusion and talk about how it works.

We have helped a number of clients buy and sell such properties and while it is a bit different from the “traditional” model of home ownership, it is definitely a great option to consider if current home prices are out of your reach.

Without further ado, let’s get into it!

So, it’s a trailer park?

While the earliest examples of land lease developments were manufactured mobile homes (RVs, trailers, etc.), that has changed over time.  Many new leased land communities are being built using modular, manufactured, and traditional built homes.  Whether built on slab or with a limited foundation (think crawl space rather than basement), they are not homes on wheels you can move easily.

A fuller description of land lease properties would be something like “house purchase but leasing of land” as we’re definitely talking about a physical house you buy and own.

The key difference is that land lease home ownership allows someone to own a home without owning the land that it sits upon.  This makes it more affordable to purchase than traditional freehold homes and it is growing in popularity as it lets you build equity while freeing up money for other priorities.

It’s not too dissimilar from owning a condo townhouse in terms of how it works, with the important caveat that in a condo townhouse you own the land, or at least the rights associated with the land.  Despite that distinction, anyone who has lived in a condo townhouse is familiar with the idea of having their own home but having a communal responsibility (and shared costs) for other parts of the complex.

Land lease properties have long been popular for those seeking an affordable retirement but in recent years, it’s also become popular with young families looking to buy their first home.  While not particularly popular in Canada, it is well established in the US and Europe.

If I don’t own the land, who does?

In Canada, there are three main types of land lease properties: commercial developers, First Nations, and institutional owners.  Let’s review each type.

Commercial Developments

There are developers who build planned communities on land parcels and operate them on an ongoing basis. It’s often the model for retirement communities, but it can also be the model for a condominium-type setup in urban areas.  Within Canada, Parkbridge is considered the leading operator, developer, and owner of land lease communities.  At last count, they had more than 55 residential communities and 35 RV resort communities across the country.

First Nations

Another common source of leased land property are First Nation bands that are leasing land located on reserves set aside under the Indian Act of Canada.  You may have encountered friends who have bought leased land cottages where the land is owned by a First Nation band.  Just like with the retirement communities that are the common commercial development model, it’s not much different than owning any other cottage, except for the price.

Institutions

Finally, there are some institutional owners who sell land lease properties, though it is more uncommon.  There are some municipalities, universities, and other public institutions who have designated some of their property for a long-term land lease either because it’s endowed or has some long-term value.  If you’re a Toronto resident, you’re likely familiar with the Toronto Islands, which are an example of institutional owned land leases.  There are 262 residential properties on Ward’s Island and Algonquin Island, overseen by the Toronto Islands Residential Community Trust.

What’s it cost to rent this land?

It’s impossible to give a specific average cost for a monthly land lease fee, as the actual monthly cost to lease land depends on a number of factors.

First and foremost, the local real estate market dictates the value of the land.  While you may not be buying the land, commercial developers did – and the cost they charge for lease is based on what market rates allow.  In the case of First Nations bands or institutional owners, the land has likely been owned for a long time, but following the principal of “highest, best use”, rent is charged that makes sense given the market conditions.

Using the same logic, the size of the lot you’re renting heavily influences the rent being charged, as if you weren’t renting it, they could be doing something else with that plot.  Other considerations that impact the rental rate are amenities associated with the development, upcoming investments to be made within the development and services provided.

For the most common type of land leases, commercially owned communities, the monthly rent includes lease of the site and use of the property, as well as professional community management. Often this includes such things as community garbage and recycling, tree maintenance, fire hydrant inspections, sewer and pond maintenance, drainage, underground infrastructure repairs, and municipal property tax for the common areas.  While the list of what is covered under a land lease varies from community to community, it often also includes landscaping and maintenance of common greenspaces, parks, roads, walkways, community facilities, hall spaces, and related equipment.

It isn’t too much of a stretch to say that whatever you’d consider the responsibility of the municipality in a typical freehold home where you own the land, is instead the responsibility of the developer.  Whether this costs are bundled into an overall land lease fee, or broken out separately (as is often the case due to variability each year), a monthly fee covers off these costs.

As a homeowner of a land lease property, you’d be responsible for the regular maintenance and upkeep of the home and yard as well as your own utilities, including natural gas/propane, water, electricity, cable, internet and telephone.  The monthly bill that you pay to the operator of the land lease community will likely list a land lease fee as well as taxes, exterior maintenance, water and sewer.

Just like with maintenance fees for a condo unit, well managed developments keep the monthly costs low, while developments facing issues often see increasing costs billed to land lease tenants.  These costs tend to go up over time, which leads us to the next topic.

How long is this lease?

When you don’t own the land that your home is sitting upon, the length of your lease obviously becomes very important.  While the Residential Tenancies Act applies to land lease communities, there are significant differences between the rental of a house or condo unit (where you are always only renting the space, not the land) and a land lease.

The length of the term of a land lease will vary by province, due to provincial legislation and other considerations, so leases are anywhere from 1 to 99 years.  While you could in theory sign a very short-term lease of land (i.e. just a couple of years), this is obviously only practical if the home you put on the land is a mobile home that can be moved easily.

The length of the lease that is able to be signed by a new owner is a very impactful aspect of the value and therefore the sale price of a land lease property.  This is true both from the perspective of being certain how long you can live in the home on that piece of land, as well as in regards to the financing of the property.

Can you still get a mortgage on a house on leased land?

The short answer is yes, you can get a mortgage on leased land properties.

The longer answer is that there are additional considerations that apply, so let’s review.

In areas where they’re common, you’ll likely find local lending institutions have developed packages to address the specific particulars of a land lease.   The CMHC will insure most land lease mortgages, but there are certain caveats.

We mentioned the importance of the lease term for the value of a leased land home, but it also directly impacts getting a mortgage or refinancing such a property.

While underwriting guidelines vary, you should assume that the lender will be checking to make sure that the remaining term of the lease exceeds the amortization period of the Mortgage by a minimum of five years.   For example, if you are considering buying a land lease property where the standard lease term in the community is 21 years, don’t expect to be able to get a mortgage with a 25 year amortization.  Instead, you’ll likely be offered a 15 year amortization to make sure there is a buffer between when your mortgage ends and your lease ends.

From a debt servicing perspective, buying a land lease home may also come with higher monthly costs as described in the earlier review of land lease costs.  While the home itself is cheaper than the freehold equivalent, you’ll have additional costs (land lease, maintenance, etc.) that will factor into the total debt servicing ratio.  This is somewhat mitigated by the lower property taxes as you don’t own the land, but it depends on the lender and how they calculate debt service ratios.

Please note that while a mortgage may be possible most lenders ask for a down payment of between 25% to 30% on the home.  While a lower purchase price makes this easier for a potential home buyer, it is still a far cry away from putting down 10% to 20% on a more typical freehold home purchase.

So, how much cheaper are these type of properties?

While it can be difficult to assign a specific discount to lease hold homes compared to freehold homes where you are buying the land as well, the price for a land lease home can be as much as 25 to 30 per cent lower than freehold.

In addition, the Ontario Land Transfer Tax applies when land, or an interest in it, is purchased, but it does not apply to leases whose total terms do not exceed 50 years.  While Toronto is the only municipality with an additional municipal land transfer tax, the provincial land transfer tax is still pretty hefty.  If you were considering a $500,000 freehold home with land versus a $500,000 land lease property, you’d save $6,475 in land transfer taxes if you bought the land lease option.

It is worth mentioning that a lower purchase price on land lease properties is fundamentally because that while buyers enjoy the equity of owning the house, and benefit from any increase in value of that home, they will not share in increased land values.  In short, you can buy at a discounted price from the freehold market, but you should also expect to sell at an equivalent discount in the market when you sell.

Speaking of selling…how do these homes do in terms of appreciation?

It makes sense to us that in a sharply increasing market, where prices are rising quickly, land lease properties may do better than the market as a whole as they remain a much more affordable option.  Conversely, if the market is dropping and we’re seeing lower average sale prices compared to a few years ago, buyers who previously would have only been able to afford a leased land house may be able to afford a home with land.  In that situation, we’d predict that the lease land market would do worse than the market as a whole.

If you’re considering buying a land lease property, work with agents who can do the research to tell you how homes in that development have done in the past in terms of appreciation (or depreciation).  It isn’t an easy thing to do, but relying on past general market changes and applying it to a land lease property is quite risky.

We hope you found this review of land lease properties useful.  Given the ongoing housing affordability crisis we’re facing, it is a model worth considering.  If you’re thinking about buying (or hoping to do so) and want to discuss your specific situation, we’d love to see if we can help you move forward.  Get in touch with us to book a time to chat!

While it is still relatively rare, we are starting to see some homes in Toronto and the GTA that have built out an accessory dwelling unit on their lot, in the form of a laneway house or garden suite.

As provincial and municipal governments made changes to legislation to allow such additions to be built, we have started to get questions from our clients.  In some cases, they want to know what the return on investment would be if they built one, but the more common question is whether one of their neighbours would be allowed to do so.

That is a complicated question and we thought we’d spell out some of the history around laneway houses and garden suites and talk about the current state of affairs in Toronto and the GTA.

First, a history lesson.

For quite a while, there wasn’t too much going on with this type of housing, as Ontario’s zoning laws did not allow detached secondary dwellings, such as garden suites or laneway houses, in most urban residential areas. While basement apartments were permitted in some cases, separate backyard or laneway homes were not widely accepted.

In the early 2000s, Ontario introduced policies supporting additional dwelling units (ADUs), but local zoning bylaws remained restrictive. In 2018, the City of Toronto amended its rules to allow laneway houses—small residential units behind existing homes, facing laneways. This marked a significant step toward legalizing detached ADUs, but it faced consistent local opposition and we didn’t see much uptake despite it being technically allowed.

In 2019, the Ontario government updated the Planning Act to require municipalities to permit both garden suites (detached backyard homes) and laneway houses. In 2022, Bill 23 (More Homes Built Faster Act) further expanded these rights, allowing up to three residential units per lot (one primary dwelling and two additional units, such as a basement apartment, garden suite, or laneway house).  Again, despite the fact that it was permitted by legislation, municipalities were given the ability to set the parameters around how such approvals would be granted – or denied.  In many cases, the requirements were so stringent that very few properties would actually qualify for approval.

Since then, while many Ontario cities have updated their bylaws to support these housing options, challenges remain, including high construction costs, infrastructure limitations, and municipal approval processes. Efforts continue to streamline regulations and increase adoption of garden suites and laneway houses as a way to address housing shortages, but in our opinion, it remains a very, very small part of the housing market and will not make a material impact on housing affordability.

Not in my backyard!  Wait, not in my neighbour’s backyard, please.

The question of whether a laneway house or garden suite can be built on a given property is very much dependent on the municipality and the requirements they set for approval of a laneway house or garden suite.

When the City of Toronto began establishing the regulations for garden suites back in 2019, we were part of a TRREB committee that was part of the consultation process.  During that meeting it became pretty clear that while Toronto – like all municipalities in Ontario – was required to allow garden suites under the revised Ontario Planning Act, they weren’t going to make it possible for most properties to qualify.

In the years that followed, we saw very restrictive requirements set in many municipalities in the GTA.  While major urban centres like Toronto have arguably the highest need for increased density, they also tend to have much smaller lot dimensions than in other parts of the 905 area code.  At the same time, properties in smaller towns or more rural settings often have larger lots, but little demand or interest in building ADUs onto those properties.

A good starting point for determining if you (or your neighbour) can (or can’t) build a laneway house or garden suite is the local planning department.  Here’s links to them!

• City of Toronto: https://www.toronto.ca/city-government/planning-development/
• Peel Region: https://www.peelregion.ca/planning/
• Durham Region: https://www.durham.ca/en/doing-business/planning-and-development.aspx
• Halton Region: https://www.halton.ca/For-Residents/Planning-and-Development
• York Region: https://www.york.ca/planning-development
• Dufferin County: https://www.dufferincounty.ca/planning-development
• Simcoe County: https://www.simcoe.ca/dpt/pln

These websites provide the most up-to-date regulations and planning guidelines for laneway houses and garden suites in each region and are the start of the journey to determining what is possible for a given property.  Depending on where you live, you might be better off starting at your municipality planning department as they may very well have their own version of what is permitted for ADUs.

If you’re looking for more detailed information or trying to sort out the feasibility of creating an ADU on your property, we’re happy to provide an introduction to professionals who work in exactly that field.  Get in touch with us with your specifics and we’ll make it happen!

Whenever there are headlines about real estate in the media, it is often unclear what market results they are sharing, or for what type of real estate the forecasts are focused upon.  Sometimes the headline is about what happened to the average price across Canada in the past year, sometimes a forecast is about what’s coming next in Toronto – and sometimes it isn’t about any market or housing type in particular.

In early February 2025, we attended a Year in Review event put on by the good people at the Toronto Regional Real Estate Board.  As you can imagine, lots of stats were discussed, forecasts were made and coffee was consumed.

We wanted to breakdown one particular segment of the stats across the GTA, namely housing type.  The headlines we reference above are often focused on what’s happening, on average, in a given housing market.  It is rare that these stories talk about what is happening with certain housing types, and make no mistake, there are significant differences in how certain types of homes did and what’s predicted to happen next.

Grab a cup of coffee and sit down as we walk you through what happened in 2024 for your housing type!

First off, what sort of places do people live in?

One thing that surprises many people is the actual percentages of housing types that make up a given market.  We tend to make assumptions about the levels of housing types based on what we see in the neighbours in which we live and work, but the percentages for the area can be quite different.

Here’s the breakdown of percentages for each housing type in the seven areas of the GTA.

With the exception of Toronto, the most common housing type across the GTA is detached homes, followed by apartments.  Toronto swaps the order of those two, but they remain the two most common housing types.  Semi-detached homes and townhouses each make up only 5% to 12% of housing market across the GTA, so they are far less common than you might think.

We’re going to look at prices and sales across the GTA next, so we need to know how much each housing type make up for the GTA on average.  Here are the numbers.

• Detached Houses: Approximately 45.5%
• Semi-Detached Houses: Approximately 8.5%
• Townhouses (Row Houses): Approximately 9.5%
• Apartments: Approximately 36.5%

In a pie chart, that looks like this.

Now that we know the breakdown of housing types in each part of the GTA and the GTA as a whole, let’s look at what happened in 2024!

We did it!  We had (slightly) more sales in 2024!

Last year, we saw a slight increase in the level of homes sold, going up from about 65,900 in 2023 to about 67,600 in 2024.  That’s about 1,700 more sales across the entirety of the GTA, so not exactly a huge difference.

As you can see from the line chart of sales per month, April was the busiest month last year and December came in as the slowest month of the year.

Those sales were spread across the GTA, but not evenly of course.  Toronto saw the largest level of sales, while York and Peel more or less tied for second place.  Durham and Halton each had a pretty significant level of sales but Simcoe was down near the bottom, and Dufferin was the least active market last year in terms of sales.

If we look at the types of homes that sold, we can see that almost half (46%) of homes sold last year were detached homes.  That matches exactly the percentage of homes (46%) that detached homes make up of the housing mix.  Apartments accounted for 28% of the sales last year, despite making up 36% of the housing mix, which means it was a slower year for apartment transactions.  Townhouses made up 18% of the transactions in 2024, despite being just 10% of the housing mix, so it seems like people who were going to buy apartments opted for townhouses instead.  Finally, semi-detached properties were 9% of the sales in 2024, and that’s exactly the percentage of the housing mix they have in the GTA.

Put it all together, and it seems like the sales of detached and semi-detached did what we would expect given the housing mix, but apartments and townhouses decided to switch places in 2024.

We did it!  We had (marginally) more affordable prices in 2024!

On the average price side of the equation, we saw that we saw a slight drop in the average price across the GTA.  It went from about $1.126M in 2023 down to about $1.117M in 2025.  That’s about $9,000, so we’ll hold off on the ticker tape parade for now.

The highest average price of the year was in May of 2024, while the start of the year was the lowest.

Turning to the average price by home type, we see that detached homes lead the market, with an average price of $1.453M in the GTA.  That’s down about $10K from 2023.  Despite not making up much of the sales overall, semi-detached are the second highest price option, at $1.102M.  That’s down about $12K from the year before.  Townhouses saw the biggest actual price drop, going from $949K in 2023 to about $922K on average in 2024, a drop of about $27,000.  This might account for the increase in townhouse sales relative to their percentage of the housing mix, as buyers saw an opportunity.  Apartments dropped about $14K, going from $717K on average in 2023 to about $703K last year.

While no housing type showed an improvement in average price across the GTA in 2024 compared to 2023, it’s far from the housing crash that some pundits predicted would happen.

Let’s call 2024 the year of (trying to) selling your home.

Finally, if we look at the breakdown of new listings, we can see that we had a substantial increase in the level of properties going up for sale in 2024 compared to 2023. We had just over 166,000 listings come on the market last year and that is about 16% more than in 2023.  That’s over 23,000 more new listings compared to 2023.

A reminder that we had 67,609 sales in 2024, which means that only about 41% of the new listings in 2024 actually sold.  Even if some of those “new” listings were re-listings of properties that failed to sell, there were lots of sellers who wanted to find a buyer but didn’t manage to do so.

The percentages when it came to who was trying to sell last year are broadly in keeping with the housing mix percentages we see in the GTA, but townhouses were again a larger part of the mix than would be expected.  They also were the biggest year over year increase in terms of how much of the market inventory they comprised, up 122% compared to the level in 2023.

From a simple numbers perspective, we had the most disappointed sellers in the condo apartment category, with about 9,000 more attempts to sell in 2024 than in 2023.

There you have it, 2024 in review!  It wasn’t a banner year by pretty much any standard, but the review does tell us that where you live and the housing type you own makes a significant difference in how your market did last year.

If you’re thinking about making a move, then you need the specific data for your home and your area, and we’re happy to provide it.  Get in touch with us and we can set a time to talk about how to move you forward!

We work with both landlords as well as tenants and we genuinely love when we connect good people together on a rental deal.  It can in theory happen on the buy and sell side as well, but the fear of whether both sides are being properly represented makes it challenging.

When it comes to rentals, however, a good tenant being connected with a good landlord is a win-win for both parties.

Just like the resale market, rental markets shift over time and it can go from being easy to rent a property, to being quite challenging.  Supply and demand play a big part, but unlike in the resale market, we see more consistency in the rental market as to when it is a good time to try to rent a property – and when it’s a bad time.

In addition, there are a number of factors play into why it can be difficult to rent a property out, and we wanted to share our experiences in that regard and also talk about the math for landlords as to when it is worth lowering the asking rent to get a quality tenant in the property.  This article is mostly focused on advice to landlords, so we give you our Key Landlord Takeaways at the end of each section.  Let’s get to it!

I’d love to move in the middle of winter.

When it comes to renting out properties, the absolute worst time to do it is the dead of winter.  A rental listing that comes up for rent on January 1^st is far more likely to sit on the market, vacant and with no income being received, than a unit that came on the market at any other time of the year.  While it is broadly true that sales slow down in January for resale homes as well, it is nowhere near as dramatic as what occurs in the rental market.

We think a number of factors influence why the rental market is slow in winter, including the joy of doing anything in a Canadian winter.  The timing of school ending and starting, traditionally a big impact on the rental market, is also months away.

Key Landlord Takeaway:  If you can avoid signing a lease that ends in January or February, do so.  While tenants have the right to continue a set term lease on a month to month basis, they also have the right to leave at the end of the lease, meaning you’re trying to rent out a property amongst the slush and snow. 

You’re perfect.  Can you move in tomorrow?

Most landlords don’t plan very far in advance when it comes to listing a property for rent.  This is partially due to the challenges with showing a place for rent that is still tenanted, and also due to the likelihood that the place may need some sprucing up to show well and command the highest rent.

As a result of this understandable approach, landlords go from receiving rental income to help pay expenses and the mortgage, to receiving no rent in the last month of the lease (when the deposit the tenant paid at the start of the lease is applied), followed by a period of no tenancy with no income, followed by realtor fees for the new tenancy.

Put it all together, and landlords are eager to get a new tenant in place to get the rental income flowing again.  While there are some circumstances where a great tenant is available to move in immediately, it is more often than not a red flag if a tenant is fine with a quick occupancy.  When we ask questions about the lack of notice they’re giving their current landlord, why they don’t have any furniture to move and so forth, the answers rarely fill us with confidence.

Key Landlord Takeaway:  Avoid the pain of vacancy by planning in advance to get the unit rented sooner rather than later.  A good agent can work with current tenants to minimize the disruption to them and they are actually often great advocates for a property if they enjoyed their time there.  We often advise our landlord tenants to push a bit higher on the asking rent during this period, with the commitment to spruce up the unit in the hopefully brief vacancy period between tenants.

But, I need to get more!

It’s time to touch on one of the more challenging aspects of renting a property out – the rental rate!  In many cases, the landlord has significant financial obligations and doesn’t own the property outright.  Mortgage payments, property tax, utilities (if included in the rent) – these are costs that the landlord has to pay for, ideally out of the rental income.

We’ve seen a number of examples during the recent rising interest rate cycle where landlords faced increasing costs at a higher level than they were permitted to raise rents.  In such circumstances, landlords have to contribute funds out of pocket to cover any deficit and we have had a number of clients who sold properties simply to stop “losing” money each month.  We put that in quotes because even with higher interest rates, each mortgage payment includes a principal component and as such, part of the payment is in essence a forced savings plan to build equity in the property.  Nonetheless, when you have to find money to deposit each month, it doesn’t feel like you own a property that is working out well for you!

While landlords will naturally want to optimize the rental income they receive, a change in supply or demand can result in properties sitting on the market.  While it can be tempting to hold the line and keep the same asking price until you get it, the math shows that can be the wrong approach.

Consider the example of a landlord who is renting out a property for $2,500 a month.  The tenant leaves and the landlord decides to hire our team to relist it at $3,000 a month.  If we get that rental rate, that’s $36,000 a year, which works out to about $99 a day.

We list the property on October 5^th, after the landlord does some minor cosmetic updates, and in the first week of the listing, a tenant applies who is great in every way except their budget.  They can only pay $2,800 a month, so they offer that, with a starting date of November 1^st.  While the landlord likes their profile and is fine with a November 1^st start, they don’t like the $2,800 per month.  That’s $200 less a month, which means, in their mind, they’re losing $2,400 a year.  They decline, the tenant goes away and the listing continues.

A few other applicants apply, but the landlord doesn’t like their credit history and income levels compared to the rent and declines to move ahead with them.  Weeks pass and we’re into late October before another good tenant offers on the unit.  This tenant offers the asking rent, but has to give notice to their current landlord, so they request a January 1^st occupancy.  We negotiate and they agree to take it December 15^th and have a period where they are paying rent on both places briefly.  The landlord is happy because they got the rental rate they wanted, but are less keen on the month and half of additional vacancy.

Which was a better option, the initial tenant at a lower rate, or the eventual tenant at the asking rate?

The initial tenant who was offering $2,800 with a November 1^st start would have seen the math work out as follows.

• October 1st to 31^st – Vacant, so the landlord “loses” $3,000 of their asking rent
• November 1^st – Occupied, so the landlord receives $2,800 for the next 12 months, which means they “lost” a total of $5,800 with this option.

The second tenant who eventually arrives is willing to pay the $3,000 but not until December 15^th, which means the math works as follows.

• October 1st to 31^st – Vacant, so the landlord “loses” $3,000 of their asking rent
• November 1^st to 30^th – Vacant, so there goes another $3,000.
• December 1^st to 15^th – Vacant, so add another $1,500 into the tally, which brings us to a total of $7,500 of “lost” income. The landlord received their $3,000 rental rate, so didn’t lose anything else by accepting a lower rate.

Compare the two and you see that taking the first tenant would have saved the landlord about $1,700 in income.  Obviously the amount of income received (or not received and “lost”) is dependent on how long it is vacant and the eventual rental rate received, but time and again we see a version of this scenario play out.

Key Landlord Takeaway:  Ask for the rental rate that you think the place is worth but be prepared to accept a lower rate for a quicker occupancy.  If you’re not getting any showings or applications, then lower your asking rate to get it sold.  Any perceived loss in income from lowering your rental rate or taking a lowered offered rental rate is quickly eaten up by vacancy periods.

We admire the landlord clients we work with as they are taking a real risk to try to build a property empire.  It can be quite challenging to make it work financially and many of our landlord clients are far from real estate moguls with hundreds of rental properties.  If you’re thinking about buying an income property and want to make sure the numbers work – or you’re a landlord who wants an agent on their side who understands how important it is to fill a vacancy – then get in touch with us!

Whether we’re selling a house or a condo or helping clients buy a property, we often end up talking about bedrooms. How many bedrooms, what type of windows they have, size of the closets and so on.

As a result of that, about once a week we have a conversation with a client about the definition of a bedroom. After all, when we’re working with someone to buy or sell real estate, the number of bedrooms matters a great deal. Is it a three bedroom house, plus den, that is too small for a prospective buyer with three kids? Or is it a four bedroom house that is just right? How you define a room and whether it is in fact a bedroom, or just a den, matters.

Given the impact that number of bedrooms has on the value of a property, we took it upon ourselves to find out the exact definition. If you think it’s about windows, or closets, or doors, you might be surprised at the answer.

Let’s look at how a bedroom is defined in Canada, in Ontario, in Toronto and by our local real estate board.

Canada: A Nation United by Minimum Bedroom Standards

Starting at the country-wide level, the National Building Code mostly takes a hands-off approach, leaving the details to provinces and municipalities. It does provide clarity on a few things, such as the size required for it to be a bedroom. Seven square meters is the magical number, so if your room’s smaller than that, it’s more of a den than a bedroom. Canada’s national rulebook doesn’t care about closets and there is no requirement at the national level for a bedroom to have a closet.

Ontario: The Province of Spacious Ambitions

Zooming in to Ontario, things don’t change much. The Ontario Building Code sticks to the same philosophy: dimensions, dimensions, dimensions. The 7-square-meter rule applies province-wide but it also clarifies that the ceiling height needs to be 2.3 meters.

When it comes to windows, the OBC is less clear, so while it does say that “every room used for sleeping in any building, and every principal room such as living room, dining room or combination of them in dwelling units shall be provided with windows”, that is a little confusing. Basically, all bedrooms need to have windows, but also every principal room, which means…all rooms? By that standard, any interior room can’t be a…room?

Even the Residential Tenancies Act gets into the discussion, requiring every bedroom to have a window, but then it says that window can be part of a door. The end result seems to be you can’t have a room without ventilation of some sort, be it a window, a door or even some sort of mechanical ventilation like a fan. Given we haven’t yet encountered a magical room that somehow exists as a room without a door or doorway, this seems like a meaningless stipulation.

Toronto: The Big City with Even Bigger Bedroom Standards

In Toronto, where space is at a premium, the definition of a bedroom is shockingly straightforward. A bedroom in Toronto is really just a room with:

• Space to lie down: It needs to be at least 7 square meters (about 75 square feet), so if you can’t fit a twin bed in there without turning it into a game of Tetris, it’s probably not a bedroom.
• Headroom: The ceiling height has to be at least 2.3 meters (about 7 feet, 6 inches) for half of the room. If you’re constantly crouching, you might just be living in a glorified closet.
• Escape hatch: There has to be a window big enough to climb out of in case you want to make a quick exit—5.7 square feet of window space, to be exact. So, no trying to pass off your windowless broom closet as a bedroom.
• Breath of fresh air: Natural light and ventilation are a must. So, if your “bedroom” feels like a dungeon with no windows, it’s time to reconsider your floor plan.
• Closets? Optional! If you’re in Toronto, storage space is more of a “nice to have” than a legal requirement.

Toronto Regional Real Estate Board: That’s None of Our Business

We spoke with the good folks at the Toronto Regional Real Estate Board (TRREB), as they run the MLS system that displays listings in Toronto and a large part of the GTA. They confirmed that they do not have an official definition of a bedroom that Realtors must follow and that we should check with local municipalities to make sure we’re accurate in describing a room in a listing as a bedroom.

The Bottom Line: It’s All About the Space (and the Window)

In the end, calling something a bedroom boils down to this: Can you fit a bed in it, stand up without hitting your head, and get out if you need to? If the answer to all three is yes, then it likely qualifies as a bedroom. There is definitely no need for it to have a closet to qualify as a bedroom, so you can drop that fact at your next cocktail party with confidence!

Understanding the rules (or the basics of them) is useful but doesn’t change the fact that it is a bit of a wild west situation in many real estate markets, with listing agents playing fast and loose with the number of bedrooms in the home. If you are looking for a new home and want to make sure that see places with actual bedrooms instead of theoretical bedrooms, get in touch with us!