As of today, September 24th, 2026, there are 10,815 places for sale in Toronto. That includes 4,199 freehold homes as well as 6,616 condominiums. If that seems like a lot of properties on the market, that’s because it is! While Toronto often has significant levels of properties being bought and sold, in the past couple of years we’ve hit all time high levels of properties that are for sale.

The latest population estimate for Toronto proper (not the GTA, just Toronto) puts it at about 3.27 million residents. That means there is one place for sale for about every 303 people in the city.

When we originally wrote about this in 2016, there were only 4,848 places for sale and about 2.8 million people living in Toronto, or one property for sale for every 575 people. For those of you who tried to buy a home back then, that number probably feels about right. Some of you may be saying, “Jeff, I think there were closer to 600 people trying to buy the house I wanted.”

No question about it, things have changed.

Back then, there were such low numbers of homes for sale that many people decided to rent instead of buying, hoping that in a year or two the market would have cooled and they would be able to find a home in their budget.

While no one can say for sure what will happen in the housing market, the funny thing was that the big problem with deciding to rent wasn’t necessarily missing out on continued appreciation in property values.

The big problem was actually finding a rental property.

So, ten years later, how are we doing?

If we look on the Toronto MLS system for rental properties, we see 7,624 freehold homes and condominiums for rent as of today. That includes 3,134 freehold properties and 4,490 condominiums and works out to about one MLS rental for every 429 people in the city.

That’s quite a difference from the 3,216 rentals that were available when we originally wrote this article – in fact, it’s more than double.

Before you celebrate and assume finding a rental in Toronto has become easy, we should point out that supply is only one part of the equation. Demand for rental properties continues to be high in Toronto proper, so even with lots of options on the MLS for prospective tenants, it doesn’t mean you’re the only one looking.

Another key point is that for rental properties, the Toronto MLS system isn’t the same dominant portal that it is for home sales. While a significant number of homes for sale go up on MLS (and therefore on REALTOR.ca and all other realtor sites), a considerable number of rental properties never make it onto MLS at all.

Purpose-built rental buildings often rent directly to tenants, while individual landlords can advertise through rental websites, online marketplaces, social media and a growing number of other options.

Landlords choose to not using a real estate agent for three main reasons, so let’s review.

The Case Against #1 – Hiring an agent is (relatively) expensive.

Real estate commissions aren’t standard and are negotiable, but there is a fairly significant difference between the economics of selling a property and renting one out for a landlord client.

When we list a residential property for rent, we charge one month’s rent. If another Realtor is involved, such as an agent who brings the eventual tenant, half of that amount goes to the co-operating brokerage and half goes to our brokerage.

If we agree that in most cases we are initially looking at a 12-month lease, one month is 8.33% of the income from that first year. In essence, that’s a commission of 8.33% on the first year’s gross rental income and the homeowner may have considerable expenses — mortgage payments, property taxes, utilities, maintenance fees or repairs — that mean the actual cash flow from the property is substantially lower.

On a property renting for $3,000 a month, for example, that’s $36,000 in rent over the first year and a $3,000 (plus HST) leasing commission.

That’s enough money that it’s understandable why some landlords decide to try renting the property themselves.

The Case Against #2 – It’s a formal process.

Hiring a Realtor to rent out your home involves a fair bit of paperwork. The documents that a homeowner fills out to rent their home are pretty similar to the documents you fill out to sell a home, and Realtors have obligations when dealing with rentals just as they do when selling homes.

The process has become even more formal over time, with additional government regulations being put into place.

Since 2018, most private residential tenancies in Ontario have been required to use the Ontario Standard Lease, and the Residential Tenancies Act establishes rules dealing with everything from deposits and rent increases to maintenance, landlord entry and ending a tenancy.

Using a Realtor doesn’t guarantee that every landlord will follow every rule, and there are certainly plenty of good landlords who rent their properties without using one. It does, however, create a more structured and documented process which is both a good and bad thing.  There’s a listing agreement, information about the property, an application and offer process and, usually, Realtors involved on both sides who deal with rental transactions regularly.

There is another important consideration for landlords that sometimes gets missed when they are deciding how much effort (and money) to put into finding the right tenant.  Almost all leases start with a one-year term, but that doesn’t mean the tenant leaves after a year. In Ontario, when that initial term expires, the tenancy generally continues month-to-month unless the tenant decides to leave or one of the legally permitted reasons for ending the tenancy applies.

So, while you may be signing a one-year lease, you could be choosing someone who will be living in your property for considerably longer than that – and it’s very important to get a good quality tenant.

The Case Against #3 – There are alternatives to using real estate agents.

Unlike when a homeowner is selling a home, there are plenty of alternatives in place that can legitimately claim to be good sources of potential tenants.

This is probably the part of the rental market that has changed the most since we first talked about it back in 2016.  Back then, we talked about Craigslist, Kijiji, Viewit.ca and gottarent.com. Some of those are still around, but landlords now have considerably more ways to advertise a rental property themselves. There are dedicated rental websites, online marketplaces, social media, property management companies and purpose-built rental platforms, along with landlords and apartment buildings that operate their own websites and leasing systems.

The advantage for a landlord is obvious. They can potentially find a tenant without paying a full leasing commission.

The disadvantage is that they have to do the work themselves, which can be considerable.  They need to respond to enquiries, schedule showings, deal with people who may or may not actually show up, request and review applications, verify information and ultimately decide who they want living in their property.

We often work with clients who are looking to rent a home for a bit before they buy. They hire us as their Realtors because all of these different options can make the hunt for a rental a surprisingly frustrating process. They contact people about listings and never hear back, they show up for appointments to be told it was just rented, and they sometimes find properties that look considerably better online than they do when you actually walk through the front door.  Actually, to be fair, that happens a lot to us as well!

We’ve explained why there are quality homes and honest landlords who choose not to use a Realtor, but there are also some good reasons why landlords decide that having someone handle the process is worth the cost.

The Case For #1 – They’re paying someone to get it done properly and quickly.

Landlords who hire Realtors to list and rent out their property are motivated to get quality tenants into the unit in a timely fashion. They don’t want to deal with dozens or hundreds of calls and emails from potential tenants, scheduling showings that may or may not actually show up, requesting and reviewing applications, references, employment information and credit reports.

While owning income properties can be quite lucrative, we’ve never encountered an investor who got into the landlord business because they enjoy the process of finding tenants. The cost of hiring an agent is just part of the cost of doing business.

The Case For #2 – They don’t want any trouble.

If you hire a real estate agent, the formality of the rental process can actually be comforting to a landlord.  While there is a lot to go over, it shows that there are defined processes, built on experience and making sure things go smoothly.  Most landlords don’t want to get in trouble with the municipality, their condo corporation or the Landlord and Tenant Board. They want a quality tenant, at a fair rent, who pays on time, respects the property and helps them pay off their mortgage over time.

Our clients who hire us to rent out their properties appreciate that at the end of the process, they have proof it was done properly.  Every transaction we do ends with a single file with all of the the information about the agreement, who is involved and the terms agreed upon.

The Case For #3 – They appreciate a buffer between them and the process.

Landlords who hire Realtors are well aware of the free and paid sites they can use to rent out properties. In some cases, they have used them with limited success, while in other cases they simply no longer have the time and energy to do it again.

It takes time to list your property, respond to enquiries, assess who is a good option and who isn’t and then do the work to decide on the right tenant. Mistakes can also be made when landlords don’t understand the rules, and those mistakes can end up being very costly.

On the tenant side, we find that when we are approached by individuals who want to hire us as their Realtors to find a rental property, it is often because they have grown tired of attempting to do it on their own. They may have tried to find something privately, or they may have tried to find something on MLS but been frustrated by the process.

There is also something to be said for putting together a good rental application.

A landlord isn’t just choosing a monthly rent. They’re choosing the person who may be living in a property worth hundreds of thousands of dollars, potentially for years. Having the right supporting documents, presenting the information clearly and making it easy for the landlord to understand why you’re a good tenant can make a real difference.

We started this article by saying we wrote about this exact topic in 2016, and now here we are, ten years later.

There are 7,624 rental properties currently available on MLS compared to just 3,216 when we originally wrote this article, so it’s clear that the rental market remains a major component of the city’s real estate market.  Toronto’s population has grown considerably over that same period, but nowhere near as quickly as the number of MLS rentals available on the day we ran these searches.

That doesn’t mean finding the right rental property – or the right tenant – is easy, and it certainly doesn’t mean that every neighbourhood, price range or type of property has the same level of interest.  It does mean there are considerably more choices on MLS than there were when we originally sat down to write this.  At the same time, the ways in which a landlord can find a tenant have increased.

There is no one answer as to whether hiring an agent to rent out your income property is the right choice.  It boils down to how familiar you are with the rules around renting and whether you are willing to do the work to find a high quality tenant so you avoid problems during the tenancy.  Some landlords have no interest in adding that skillset to their mix, whereas others feel it is worth their time and effort.

If you found this article because you’re looking for a tenant for your income property, then get in touch with us to discuss next steps!  We’re experienced at finding quality tenants who will take good care of your property and pay on time and we’d love to help make that happen for you.

In real estate, we sometimes refer to the rental market as the Wild West.  While it is heavily regulated, rentals involve a different and sometimes overlapping set of rules governing landlords, tenants and real estate agents.  This leads to confusion and differences in approaches to handling rental listings and reviewing and approving tenants.

If a landlord chooses to rent a property outside of the MLS system and not use agents to represent them or tenants, then things can get even messier.  There are dozens of free or paid sites for rental properties that operate outside of the purview of organized real estate.  With no real estate agent involved – and therefore not the same requirements on disclosure, honesty or consumer protection – there are lots of stories about scams and misrepresentation in that part of the rental market.

If the rental market as a whole is the wild west, then furnished rentals are the town where the sheriff is missing, the saloon is on fire and horses are running down people in the street.

Let’s talk about how furnished rentals work and the challenges inherent in such transactions.

More stuff, more money?

Furnishing a rental property seems like a fairly obvious way to make more money.  Put in a couch, a bed, a television and some dishes, then charge the tenant more each month.  Simple.

Except the furniture costs money, it needs to be maintained and oh, right, it actually eliminates a large portion of the tenants who would otherwise consider the property.  So, perhaps not quite that simple.

Many landlords are drawn to owning income properties because they can be relatively passive investments.  With the help of your trusty real estate agent, you find a tenant, they move in and rental income starts flowing.  Eventually they move out and the process takes place again.  It involves some effort each time a vacancy is coming up, but if the right tenant is in place, during tenancy it can be largely passive.

With furnished rentals, there is the additional challenge of having to manage both the initial furnishing of the property plus dealing with any issues during the tenancy.  If you’re renting an unfurnished property, you (or your property manager) will get calls if the fridge breaks or the AC stops working, but if their couch starts to sag or they decide they need a home office, it’s not your problem.  The landlord of a furnished rental has to deal with questions or issues related to the furniture in the property and the tricky question of standards often comes into play.

If you look around your home, you probably have some furnishings you’ll replace at some point, but only when you feel like it.  That pan that doesn’t have much of the non-stick left on it may still get used, and you just put a blanket over that stain on the couch.  It is a universal truth that when someone doesn’t have to pay for something to be fixed, their standards rise and their patience for waiting drops.

Given the additional challenges in renting out a furnished property, do many people do it?

It’s about 15% to 20% of the rental market.

As of July 17, 2026, there are 6,348 properties for rent in Toronto.  The vast majority of those are available unfurnished, with about 85% being listed as not coming with any furniture.  The remaining 15% are listed as either partially furnished or furnished.

Put another way, if you’re looking for a place to rent, you’ve got over 5,300 options in the city if you’re bringing your own furniture and about 1,000 if you want it to come furnished.

As is indicated by the existence of “partially furnished” as well as “furnished”, there is no universally understood definition of what a furnished place includes.  One landlord may describe a unit as furnished because it contains a bed, a sofa and a dining table. Another may provide furniture, linens, cookware, dishes, small appliances, a television, artwork and everything else a tenant needs apart from their clothing and toothbrush.  Those are not the same product.

There are many different attempts to establish what is being offered by using particular descriptions.  A fully furnished property logically has more than a furnished property, but what specifically?  Is a turn-key furnished property even more than fully furnished, or a bit less?  Where does partially furnished come into play?  Does that mean there is whatever the landlord let the previous tenant leave, or is it beds and couches, but not tables?

The issue of standards comes into play again here, because what is a fully furnished unit to one person may be woefully under furnished to another.  With no universally agreed upon definition of the differences between the types of furnished properties, misunderstandings and unmet expectations are commonplace.

To sum it up, the landlord has not simply rented a unit to a tenant.  In essence they have entered the hospitality business, just without room service or the tiny bottles of shampoo.

If we’re clear on the challenges of renting out furnished properties, the question becomes, do those landlords who take the plunge make a killing?

The few, the proud, the marginally more expensive.

Even if only 15% to 20% of the rental market are comprised of furnished properties, there has to be a reason in the form of additional rent for a landlord to take on the extra work.

When we look at the asking rent for the properties currently on the market that we described above, we see it isn’t much of a premium.

• Unfurnished rentals (5,347 of them) are asking an average of $2,762 per month.
• Furnished rentals (720 of them) are asking about 7% more on average, or $2,950 per month.
• Partially furnished rentals (just 281 of them) are actually asking about 4% less! Their average list price is $2,650, so about $110 less than the average price for an unfurnished unit.

This is just one snapshot of what we’re currently seeing in Toronto and we’d definitely urge caution before assuming that holds true in other markets or at other times.

In fact, the available Canadian data on furnished rentals are far less decisive than we would like.

Back in 2021, the good folks at Rentals.ca examined apartment and condominium listings and found that furnished units in Ontario had an average asking rent 8% higher than unfurnished units.  That’s pretty close to what we found in our review but when they looked at it on a per-square-foot basis, the difference was 14%.  Keep in mind that data was from early 2021 and COVID was still very much impacting the rental market.

Another data source comes from the website liv.rent, which reported that in June 2026, furnished one-bedroom units in Toronto averaged $1,929 per month, while unfurnished units averaged $1,970.  That’s a far cry from a 7% to 8% premium and in general, we believe that the relationship changes from month to month.

Statistics Canada found that furniture was included in only 4% of Canadian rents in its 2021 Canadian Housing Survey. The study also warned that rents are difficult to compare without accounting for differences in the property, location and everything included in the monthly payment.

In our experience, sometimes furnished units show a modest premium and sometimes they show a discount.  That does not mean that furniture has no value, but it does tell us that a straight comparison between all furnished and unfurnished listings can be misleading.

After all, the furnished units may be located in different neighbourhoods than where unfurnished units are located.  They may be smaller, larger, newer or older than what’s in the unfurnished rental market.  They may include utilities, parking or internet at a higher rate than unfurnished rentals, or they may not.

In other words, there is no reliable rule that says adding furniture increases the rent by 7% or any other convenient number.  Unfortunately, the market is seldom that cooperative.  We say “the” market, but make no mistake, the furnished rental market is fundamentally a different market than the unfurnished rental market.

Different tenants, different needs, different length of stay.

The type of tenant who is interested in a furnished rental is very different than someone interested in an unfurnished rental.  While there may be the occasional person who is open to either, it is typically a binary situation – either you have furniture or you need it.

In our experience, there are a number of different reasons why some tenants look for a place that comes furnished.

• Corporate transferees
• People working in the GTA on temporary assignments
• Newcomers who have not yet purchased furniture
• People completing renovations to their own homes
• Couples who have recently separated
• Students or faculty at nearby schools
• Tenants who expect to move again within a relatively short period

Renting a furnished unit is very much a temporary situation.  While there are many cases of renters being at the same place for years or even decades, this doesn’t happen in the furnished rental market.  While not all furnished rental units are available for short-term (one month or longer) rentals, they do share a prospective tenant pool in common with short-term rentals.

These renters may be willing to pay more for a furnished place because furnishing a home for a temporary stay makes little financial sense.  After all, buying a sofa, mattress, dining table and basic household supplies is expensive and so is moving them.

While there are definitely challenges with renting out a furnished property, it can be a smart approach if handled correctly and everything aligns.  We’ve helped a number of landlord clients with furnished rentals and we know the hurdles and how to handle them.  Whether it’s a prospective tenant asking if the landlord won’t just remove the furniture (completely or in part), the move in inspection and inventory report or the suitability of certain properties (and unsuitability of others!) we’ve dealt with it all.  If you’re considering renting out a furnished property, or you’re looking to rent one yourself, get in touch with us!

Spend enough time looking through real estate listings and eventually you’ll come across something that seems like it wandered into the wrong category.

• A sushi restaurant
• A convenience store
• A nail salon
• A dog grooming business

At first glance, it can seem strange to see businesses listed by real estate agents. After all, a business isn’t a house. You can’t inspect it the same way. You can’t compare it to the one down the street with the newer kitchen and the finished basement. You can’t walk in, admire the light fixtures and decide whether the family room works for Christmas.

Business sales live in a different world but that doesn’t mean real estate agents can’t be involved and in Ontario, they often are part of these sales. The rules around real estate trading are broad enough to include businesses, leasehold interests, fixtures, stock-in-trade and other goods connected with the operation of a business.

While real estate agents can sell businesses, the real question is whether they should do it.  After all, there is a pretty big difference between being allowed to do something and being good at it.

Let’s look at how selling and buying businesses through real estate agents works, starting with what’s actually being sold.

Wait, if there’s no land, how is it real estate?

One of the first and most confusing aspects of real estate agents selling businesses is that the businesses may not actually have any real estate attached to the sale.  How can real estate agents sell something without any actual real estate?

The current legislation that governs real estate sales in Ontario is called TRESA, which stands for the Trust in Real Estate Services Act.  Before all legislation came with pithy titles, they were more descriptive and the legislation that governed real estate up until a few years ago was called REBBA, or the Real Estate and Business Brokers Act.  As the name implies, real estate agents were also very much intended to be involved in the sale of businesses.

As of today’s date, (June 12, 2026), the MLS system has over 1,500 business for sale with real estate agents in the Greater Toronto Area, with about half of them located in Toronto.  These are businesses that don’t include property and are strictly business sales.  This article focuses on the business sale side of the equation as it is far less understood.  If a business does have a building or land included with the transaction, then the value and aspects of that land are considered in addition to the value of simply the business and its inclusions.

What’s your budget?  Actually, never mind, we’ll find you something.

If we exclude the 50 or so listings that are for sale for $1 – because the agent just doesn’t know the price to list it for sale at – then they range in price from $6,000 to up to $2.2M.  If that seems like a heck of a range, it’s because what is being sold varies tremendously.

At the low end of the scale, the business for sale has extremely limited assets and is most likely not making much money.  Typical types of businesses in the under $50K list price range are beauty salons, small cafes, small convenience stores, small medical practitioners (orthotics, optometry, etc.) and so forth.  The physical location is small, they have low value equipment or stock and what you’re buying is basically the fact that consumers are (presumably) familiar with the business at that location and may use it.

On the high end of the scale, you’re looking at businesses that have very large physical locations, with significant assets and reoccurring revenue.  Some examples of businesses in the $2M plus list range are 10,000 sf indoor playgrounds, countertop manufacturing businesses, established brewery restaurants and so forth.

Let’s get into the factors that impact the list price and value of a business.

The location is often the business.

The reason business sales and real estate overlap is usually pretty simple – the business is tied to a place.  After all, a restaurant is not just a collection of tables, chairs, ovens and saucepans. It is also the corner it sits on, the people walking by, the signage, the parking, the patio, the lease, the rent, the zoning, the landlord and the fact that customers already know where to find it.

Consider a hair salon with loyal clients, six chairs, trained staff and a lease in a strong plaza.  That’s not just selling scissors and mirrors, but an ongoing concern.  This is also true for a convenience store beside a school, condo building or busy transit stop, that isn’t just selling shelves, chips and fridges.

In many cases, the real estate component is not a side issue. It is the main issue.  This is true even if the business may not own the building or any land, as we’re discussing here.  While some businesses you see in your neighbourhood and near your work may own the property they operate out of, many are in fact simply tenants.  With such businesses, there is often lots of value in the commercial lease they hold with their landlord. If the lease cannot be assigned, the landlord does not approve the buyer, or the rent is about to jump to a level that kills the profit, then the “business” may not be much of a business at all.

Buying a business is not like buying a house.

 When you buy a house, you are mostly trying to answer a few big questions.

• Do we like it?
• Is it worth the price?
• Can we afford it?
• Is there anything wrong with it?
• Will it be good for us for the foreseeable future?

A business purchase has all of those questions, plus a bunch more that are much harder to answer.

• Does the business actually make the money the seller says it makes?
• Will the customers stay after the owner leaves?
• Are the employees staying?
• Is the equipment owned, leased, financed, broken, obsolete or excluded?
• Is the inventory included?
• Can the lease be assigned?
• Are there permits or licences that need to transfer?
• Are there supplier agreements?
• Is this a franchise?
• Does the franchisor need to approve the buyer?
• Is the business being sold as assets or shares?

That is where these deals can get messy. You are not just buying something you can see, you’re buying a collection of rights, relationships, records and assumptions.  While some of those things are valuable, some are not, and some disappear the minute the current owner walks out the door.

…and goodwill to all!

There’s a concept in business valuations that is either a critical part of the value or a way for a seller to push the price up well beyond what it is actually worth.   Let’s talk about “goodwill”.

Goodwill is a magical concept that comes into play when the whole is worth more than the parts.  It involves other nebulous concepts like reputation, presence and track record.  If you encounter a business that is selling (or trying to sell) for more than the value of what is being sold, then the excess is often ascribed to “goodwill”.  To be clear, that isn’t goodwill towards the seller from the buyer, it is positioned as an intangible but nonetheless valuable component of a business that the buyer must pay for in addition to the more easily quantified aspects.

Let’s think about a business that is highly transferable, such as a well-run franchise in a good location, with established systems, trained staff and clean books.  A business like this may sell for much more than the value of its parts, because it may very well be able to keep running without much drama after the sale.

Other businesses are really just the owner, wearing a business costume.  The clients come because they like the owner, the suppliers give good terms because they trust the owner, the staff stay because of the owner. The recipes, systems, relationships and daily problem-solving all live in the owner’s head.

If the seller is the reason the business works, the buyer needs to understand what likely happens when that seller is gone. A few weeks of training after closing may not magically transfer years of relationships, habits and local goodwill.  This is why “goodwill” is such a slippery concept.

Goodwill attached to a location can be valuable, goodwill attached to a brand can be valuable, goodwill attached to repeat customers, strong reviews, staff systems and consistent operations can be valuable.

Goodwill attached entirely to Frank, who has personally known every customer since 1997, is a different thing.  No offence to Frank.  Frank may be fantastic, but unless Frank comes with the sale, the buyer should be careful about paying too much for Frank’s goodwill.

Let’s get to the most real estate-y part of this whole thing.

 For many small businesses, the lease at the existing location is effectively what is being sold.  It’s not the paint colour or the cappuccino machine, or the cute logo on the front window.  All of these things can be done by a business owner at a new location, often for less cost.

The lease is what makes someone wanting to run a certain type of business in that specific location decide to buy an existing business rather than just start one.

When we work on behalf of our business buyer clients, there are lots of questions we ask about the lease.  Some of these questions are about how long is left, what the rent is, what additional rent or TMI is payable, whether there are renewal options, whether the lease can be assigned and whether the landlord has any right to change terms when the business is sold.

A cheap rent in a good location can create real value, while a short lease with no renewal option can destroy it.  Let’s not forget that a landlord who will not approve the buyer can stop the deal entirely.

There are often aspects in a commercial lease that allows only a very specific use for the property, so if you have plans on adjusting what the business you just bought does at that location, you may discover you can’t actually do it as per the terms of the lease.

Commercial leases are considerably more complex than residential leases, and there are far less protections on both sides.  If you make assumptions that the same rules apply to your commercial lease as you’ve experienced with residential leases, you’ll be in for a world of trouble.  You could buy the business then six weeks later be informed by the landlord that the building is being sold and your lease is terminated in 90 days.  You could encounter a problem with the HVAC system at your new premises, reach out to the landlord to get the AC working again and be told that replacing that system is entirely your cost, as per the terms of your lease.

In our work with landlord and tenants on the rental of commercial properties or the purchase and sale of businesses at commercial properties, we often see inexperienced buyers where they treat the lease in far too casual a fashion.  They talk about the equipment, the menu, the sales and the “potential”, then leave the lease review until later. That’s backwards, because if the lease does not work, the rest of the deal may not matter.

Let’s talk numbers.

Business listings can sometimes have a generous relationship with reality.  You may see phrases like:

• “Owner states sales are much higher.”
• “Lots of cash business.”
• “Great potential.”
• “Easy to increase revenue.”
• “Seller only works part-time.”
• “Expenses could be reduced.”

While all of that maybe true, buyers should not pay for maybe, and if a seller wants to be paid for business income, the seller should be able to prove business income. That means actual records, not just a confident conversation at the back table after the lunch rush.

A buyer should review tax returns, financial statements, point-of-sale reports, bank deposits, HST filings, payroll records, supplier invoices, rent records and utility bills.  Many small businesses have challenges with recording and reporting their financial transactions and that can make those businesses effectively unsellable.

This isn’t because potential buyers are being difficult, it’s because if a business is being sold based on profit, the profit needs to be supportable. If the seller says the business makes far more money than the records show, the buyer has a problem.

Actually, scratch that – it’s not just the buyer.  The lender has a problem, the accountant has a problem, the lawyer may have a problem. In fact, it’s likely that everyone has a problem, except perhaps the seller, who would very much like to be paid for income that was not properly documented.

Small time or big time?

One of the big components of a business sale that determines whether this is a simple, smaller sale, or a larger more complex sale is whether it is an asset sale or a share sale.

 In many smaller business transactions, the buyer purchases the assets of the business. That may include equipment, inventory, leasehold improvements, the trade name, website, phone number, that magical goodwill and certain contracts.

In other cases, the buyer may purchase the shares of the corporation that owns the business and those are not the same thing.

With an asset sale, the buyer may be able to choose the assets they are buying and avoid taking on certain liabilities. With a share sale, the buyer may be stepping into the corporation’s history, including contracts, tax issues, employee obligations and liabilities that may not be obvious at first glance.

There can also be major tax differences for the seller, so this is not the part of the deal where anyone should be winging it.  While we can help coordinate the process and make sure the right conditions are included in the agreement, the question as to whether an asset sale or share sale is better it very much lawyer and accountant territory.  We work closely with our client’s law firm and accounting firm when preparing for a purchase or a sale of a business, so if you’re considering either, talk to your people.

In addition to the real estate agents involved, business sales often involve the buyer, seller, two lawyers, two accountants, a landlord, a lender, a franchisor, suppliers and sometimes a licensing body. If no one is managing the flow of information, the deal can get bogged down very quickly and a good real estate agent helps keep things moving.

Business sales can absolutely involve real estate agents, but they should not be treated like ordinary real estate deals.  The buyer is not just buying furniture, equipment and a sign over the door. They may be buying income, lease rights, goodwill, staff continuity, contracts, systems and the hope that customers keep showing up after closing.

That requires more due diligence than a typical property purchase and if we’re blunt, it also requires a bit more humility from everyone involved.  We need to help with our area of expertise and not advise or interfere in other aspects.  The buyer needs to verify the numbers, the seller needs to prepare proper records, the lawyer needs to review the structure and documents, the accountant needs to look at the tax and financial side and so on.

Within our team we regularly work with clients who are looking beyond standard residential purchases and into investment properties, commercial opportunities and more complex real estate-related transactions.  If you are considering buying or selling a business where the location, lease or real estate component is a key part of the value, get in touch with us. We can help you understand the real estate side of the transaction, ask better questions, and connect the dots with the other professionals who should be involved.  Let’s talk!

The fine folks at the Toronto Regional Real Estate Board have released their 2026 Q1 report on the rental market.  The report focuses on condominium rental units, both condo apartments as well as townhouses, in Toronto, York, Peel, Halton, Durham, Dufferin and Simcoe.

Here’s a link to the full report if you want to check it out.

As always, we reviewed the data to see what’s worth noting.  Let’s get into it!

More…but also less.

The report shows that across the TRREB boundaries (the GTA and a bit beyond) apartment rentals rose about 11% year-over-year, from 14,800 leases in Q1 2025 to 16,400 in Q1 2026. In the same periods, listings rose 6%, from 22,600 to 24,000, so supply remained heavy enough to preserve renter choice and negotiating power.

Put another way, more places were rented in this first quarter of 2026 than in the first quarter of 2025, but we also saw a somewhat smaller increase in the number of places for rent.  If you combine those two things – an increase in demand, with a smaller increase in supply – you’d naturally assume that rental prices would be going up.

Instead, rents fell across every apartment bedroom type, which is a bit of a head scratcher.  Average apartment rents were lower year-over-year for bachelors, one-bedrooms, two-bedrooms, and three-bedrooms. The biggest winner (for tenants) is the one-bedroom average rent, which fell 4.1% to $2,246 from $2,343. That’s about $100 less per month that landlords of these units are receiving in rent.

Two-bedrooms fell 3.2% to $2,939, and three-bedrooms fell 2.7% to $3,757, so it seems like the bigger, higher priced rental units did better than the smaller, cheaper places.  This is likely due to the level of supply, as while demand for family-size units has only increased over the last number of years, developers have focused on the smaller, single person or couple occupancy units.

Renting out a place?  You’re probably in Toronto.

Another interesting aspect of the report is that Toronto still dominated apartment leasing volume.  Out of 16,365 apartment leases across all TRREB areas, the City of Toronto accounted for 11,411, or roughly 70% of total apartment rental transactions. Toronto Central alone had 8,783 leases, making it the core of the rental market with more than half of rentals taking place there.

York Region had meaningful apartment volume, but at lower average rents than Toronto.  York Region had 1,908 apartment leases in Q1 2026. Its average one-bedroom rent was $2,165, compared with $2,322 in Toronto Central. Two-bedrooms averaged $2,732 in York Region, compared with $3,186 in Toronto Central.

While York is often the home of the highest average priced property in the GTA (trading places with Halton on some months), the average price for a condo unit in York is comparable to the average in Toronto, so while landlords in York are getting lower rent, they also paid less for their units.

Ready to rent?  Consider a townhouse.

The final odd aspect that we found in the report was in the rental townhouse portion of the market.  While the level of activity was pretty stable when compared year over year, the average rent dropped considerably.

When we compare Q1 of this year to Q1 of 2025, townhouse leases were nearly flat, rising 1.7% year-over-year from 1,156 to 1,176. In the same time comparison, average townhouse rents fell overall, with three-bedroom townhouse rents down 7.5% year-over-year. This is contrary to the condo apartment segment of the rental market, which as we mentioned, had larger three-bedroom units see the smallest average drop in rental prices of all the types of condo units.

Our take on this is that tenants who were renting out townhouses were most likely to have seen the comparable cost of owning a place equalize over the past year.  As purchase prices dropped in many segments of the markets across the GTA, a tenant who was already paying considerable money to rent a townhouse began to see prices that would carry for similar numbers to their current rent.  It seems that townhouse landlords had to make their rental rates more attractive to continue to appeal to tenants for their property who might otherwise look to jump into the property market themselves.

Every segment of the market – whether it is rental or for sale, condo or freehold, entry level or high end – has its own trends, rhythms and cycles.  If you’re thinking about buying or selling, renting or renting out, then you need to work with agents who understand the market you’re focused upon.  Get in touch with us to hear our thoughts on how to best move you forward!

In our work with landlords and tenants, one challenge we face is the regular introduction of new legislation that changes the rules and regulations around renting.

We’ve previously written about Bill 184, which updated the Residential Tenancies Act and was designed to make it easier to resolve disputes between landlords and tenants.

Since then, we’ve had a few new pieces of legislation introduced that changes the rules around certain aspects of the rental relationship between landlords and tenants.  Whenever the rules change, it takes a while for people to wrap their heads around the new reality, so we thought we’d do a summary of what’s new and where we’re at now, focusing on Bill 60.

Fighting Delays, Building Faster, Jumping Higher, Dancing with Abandon

We do miss the good old days when legislation didn’t all come with pithy marketing subtitles, but it appears that approach is here to stay.

On October 23, 2025, the Ontario government introduced Bill 60, the Fighting Delays, Building Faster Act, 2025. The Bill received Royal Assent on November 27, 2025.

It is important to note that the changes related to landlord and tenant rights and responsibilities are located in Schedule 12 of Bill 60, and that only comes into force when it is named by Order in Council at the provincial legislature.  There has been considerable opposition to this part of Bill 60 but the Ford government has largely followed through on planned legislation, so it is believed that at some point soon, Schedule 12 will be named by Order and be in effect.

If you’d like to read the entirety of the Bill, you can find it on the Legislative Assembly of Ontario site here.

The stated goal (for the RTA/LTB aspect at least) is to reduce delays at the Landlord and Tenant Board and limit tactics that slow files down.

Below is a practical summary of what’s changing – and what’s positive for landlords and for tenants.

Who wins with Bill 60?

Schedule 12 of the Bill 60 has faced considerable opposition from tenant advocacy groups and organizations such as the United Way, who view the new legislation as a step backwards for the rights of tenants.

Let’s review specific elements and who benefits most.

Better for Landlords

• Faster non-payment eviction notice timelines (N4): the minimum termination date on an N4 for many tenancies is reduced from 14 days to 7 days, letting a landlord file an L1 sooner if rent isn’t paid.
• Fewer last-minute tenant “counter-issues” at arrears hearings: tenants face new hurdles to raise maintenance/harassment/other issues within a rent-arrears hearing—most notably a requirement to pay 50% of the arrears claimed before raising those issues, plus stricter notice rules.
• Shorter internal review window at the LTB: the timeframe to request a review of an LTB order is reduced from 30 days to 15 days, shrinking the period where files can be held up by review requests.
• “Own use” (N12) option with no compensation if notice is longer: if the landlord gives at least 120 days’ notice (instead of the typical 60), the usual requirement to pay one month’s rent compensation or offer another unit may not apply (subject to the exact criteria and the in-force date).
• More rule-making flexibility around “persistent late payment”: the province can define what counts as “persistent failure” to pay rent on time via regulation, which could change how those cases are argued.

There is no question that the above changes would substantially benefit landlords, particularly with how long it takes to evict a tenant who uses the system to slow down the process.  We’d argue that good tenants who are following the rules will largely not be impacted by the changes, with the exception of the change to the N12 notice.  While landlords may rejoice at the fact that they can (with enough notice) evict a tenant without payment of one month’s rent for use by landlord or their immediate family, tenants who are asked to leave for this reason may encounter difficulties in covering moving and other costs without this payment.

Better for Tenants

• Clearer separation of issues (in theory): Bill 60 pushes many tenant complaints (maintenance, harassment, interference with enjoyment, etc.) toward being raised through proper processes rather than being introduced at the last second in an arrears eviction hearing—this can make outcomes more predictable, though the trade-off is reduced flexibility for tenants in arrears matters.
• Security of tenure is not removed: despite earlier public discussion about changing lease expiries, the adopted Bill 60 (as summarized by City of Toronto Legal Services) indicates it does not remove security of tenure—it focuses on procedure/timelines around LTB disputes.

The second point above is an important one, as initial presentations of Bill 60’s Schedule 12 included a substantive change to how lease renewals work in Ontario.  The change to make end of lease effectively the end of the tenant’s time in the unit (rather than automatically continuing on a month to month basis) would have been onerous to administer and cause significant confusion. We’re glad it wasn’t included in Bill 60.

While Schedule 12 is not yet named by Order and in effect, it is likely that will happen in the next few months.  We keep up to date with changes that impact our landlord and tenant clients to make sure that we can best represent their interests.  If you need assistant with renting out a unit (or buying an income property) or finding a rental to live, then we’d love to put that expertise to work!  Please don’t hesitate to get in touch with us to talk further.

With a new year comes new laws, regulations and rules.  We thought it would be helpful to summarize those changes and identify if they are Ontario wide or municipality specific.  Some of the changes are happening immediately and in place as of January 1, 2026, whereas others are scheduled to begin later in the year.  Let’s get you up to speed!

Ontario Fire Code

Effective January 1, 2026, homes with fuel-burning appliances (like a furnace, water heater, or stove that uses natural gas, propane, oil, or wood), homes with fireplaces or homes with attached garages now require CO (carbon monoxide) alarms adjacent to each sleeping area and on every storey.

• It used to be that a CO alarm was only required per floor where there are bedrooms, but now every sleeping area must have one adjacent to it and every floor of the home (regardless of whether there are bedrooms) require one.
• If you own a condo, you’re not necessarily off the hook.  If the unit has a fuel-burning appliance in the unit, or if it is heated by one (even if located elsewhere, such as a furnace in a building service room), then you have to follow the new rules.  In addition, if the unit is located directly above, below or beside the building service room or the building garage, you have to follow these new rules.

Ontario Rental Rate Increase Guideline

The Ontario-wide rent increase guideline for 2026 is 2.1%.  This is the maximum a landlord can increase most tenants’ rent during 2026 without the approval of the Landlord and Tenant Board.

• For most tenants, your rent can’t go up by more than the rent increase guideline for every year. However, the guideline does not apply to new buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018.

Brampton Residential Rental Licensing

Effective January 1, 2026: Brampton’s Residential Rental Licensing (RRL) requirement applies across all wards for rental properties with 1–4 units.

• This includes single homes rented out, homes with an additional residential unit like a basement apartment, and up to fourplexes or garden suites.
• Every license will carry clearer conditions tied to maintenance, occupancy, insurance, and compliance, and applicants must complete a one-time online educational module. The City’s process explicitly requires compliance with safety, fire, and property standards, and indicates a minimum $2M liability insurance.

Toronto Land Transfer Tax Rate Increase

Effective April 1, 2026, Toronto is putting in an additional increase to their municipal land transfer tax for homes sold for more than $3M.  Here’s the increases.

• Over $3,000,000 and up to $4,000,000: 3.5% → 4.40% (+0.90 percentage points)
• Over $4,000,000 and up to $5,000,000: 4.5% → 5.45% (+0.95 percentage points)
• Over $5,000,000 and up to $10,000,000: 5.5% → 6.50% (+1.00 percentage point)
• Over $10,000,000 and up to $20,000,000: 6.5% → 7.55% (+1.05 percentage points)
• Over $20,000,000: 7.5% → 8.60% (+1.10 percentage points)

Properties sold in Toronto that are under $3M have the same MLTT as currently in place.

Changes in Other Municipalities

Other parts of the GTA will be making some changes in 2026 to their rules or by-laws, but they are not particularly impactful.

In Durham and York, there aren’t big region-wide “new for 2026” change that compares to Toronto’s tax changes or Brampton’s rental licensing expansion.  Almost all municipalities in Durham and York have existing rental license rules.  For example, Oshawa has licensing requirements for certain rental housing and also licenses/regulates short-term rentals, Vaughan allows short-term rentals only through a licensing framework (typically tied to principal residence concepts and related taxes), and Markham’s zoning approach effectively prevents short-term rentals.  Toronto remains the only municipality given permission by the province to charge an additional MLTT, so no other regions have that in play.

Halton and Simcoe have a few more concrete 2026 items, but they’re mostly cost or licensing details rather than market-shifting changes. Oakville is introducing a stormwater fee in 2026 (phased in, with typical annual amounts varying by housing type), Burlington continues to require short-term rental licensing with a 2026 owner/operator fee shown at $300, and Milton’s short-term rental licensing has been in place since 2022. In Simcoe, Orillia is changing its short-term rental licensing fees for the 2026 licensing year (a per-bedroom model with a cap), while Collingwood’s short-term accommodation licensing has been in effect since early 2025 and Barrie continues to regulate certain lodging/rooming-style housing through licensing.

While that may be it for immediate or planned changes, we expect to see a number of other changes in 2026 as Bill 60 comes into force.  On November 27, 2025, Bill 60 became law, but Schedule 12 (with the RTA changes) was not automatically activated and still needs a separate “in-force” order.  When that happens, we’ll write an article on what it means for landlords and tenants as well as people buying or selling income properties.

If you’re planning on making some real estate moves in 2026, we’d love to talk further about how we can help and what you need to know!

While every industry has their own specialized vocabulary, we have to admit that real estate agents take things to a whole other level.  First off, we often use short-forms and nicknames for the paperwork used in a real estate transaction.  If you’ve ever listened to a couple of agents talk about real estate, it likely sounds like nonsense.

“Did you get a B.R.A signed for those people or are they tire kickers?  You now, the ones you met at the public for the place holding back?”

Let’s Google Translate that.  “Did you get a Buyer Representation Agreement signed by the potential buyer clients so you can represent them, or are they not actually ready to start looking?  You know, the people you met at the public open house for your listing that was doing a one week marketing period before accepting offers?”

While industry jargon is by no means specific to real estate agents, we are somewhat unique in that we also take common terms and make some liberal interpretations in the way we use them.  We like to call that Realtorspeak, and it can come across as more of a learning disability than an actual other language.

Let’s take a tongue in cheek look at some of the best examples.

“Convenient location”

If you read through real estate listings, one of the most common phrases you’ll read is “convenient location”, though convenient to what is the question!  We’ve been to properties that we can confidently say were convenient to absolutely nothing worth seeing.  This phrase is often paired with being “upper” or “lower” to a desirable area, such as the semi-detached house that is conveniently located close to the Beach, while actually being a 20 minute drive away.

“Can be”

Say what you will about us, Realtors are a forward looking bunch.  That den “can be” a bedroom, albeit one without a door, window or closet.  That backyard “can be” landscaped into a private oasis by simply adding a deck, water feature, fences, trees, grass and interlocking patio stones.  While MLS listings cannot make material misrepresentations about the property, optimism is very much allowed.

“Lovingly”

Whether it is lovingly maintained, lovingly decorated or lovingly renovated, we do admire the mental picture that goes with this word.  Picture the owner polishing the floor with a smile, resting a hand on top of the kitchen counter with pride at its cleanliness and so forth.  No angry renovations in this place!

“Gentrifying”

Ah, gentrification.  While in some circles, gentrification is a negative term, for Realtors, it is the dawn of a bright new future.  Yes, this area is getting better.  In fact, last week there were only two cars broken into on the street as opposed to four!  This term is often a shorthand for “Yes, it’s a bad area right now, but it has to get better, right?  Right!?”

“Views”

With the eagle eyesight Realtors possess, we think that a real estate agent with glasses should be grounds for expulsion from the industry.   We’ve stood on a balcony with clients on many an occasion, looking for the “Views of the lake” the listing promises, only to finally spot a bit of blue between the two condo buildings blocking the lake.  Please don’t get us started on “Gorgeous views”, which is code for “There isn’t another condo directly beside your building, so you can see some distant skyline if you look in one specific direction.”

“New”

Some Realtors have a very liberal interpretation of this word.  New floors, done three tenants and four years ago.  Newly renovated bathroom, complete with gold faucets from the 1980s.  We often see agents substitute “recent” for “new” but it has the same issue.  After all, we “recently” found our buyer clients a detached home for $300,000 and they’ve been living there happily for 15 years now.

“5-star”

Just like every ranking system has different criteria, it is fair to say that some Realtors have a very high ranging scale of ranking criteria.  Is 5-star the best?  Is the scale up to 10 stars?  Do these Realtors consider restaurants with table cloths 5-star?  A similar phrase that is used in the rental market is “Triple A tenants”, which is meant to indicate the most desirable of potential renters for a property.  We have seen agents submitting offers on behalf of their “Triple A tenant” where the credit report shows a consumer proposal and pending bankruptcy.

“Den”

Our favourite example of Realtorspeak has been saved for last!  The much abused “Den” in the “1 + 1” condo unit.  The first number one refers to the number of bedrooms, but the second number one is talking about a den.  Depending on the listing agent’s interpretation of this word, a den can mean a separate room with a door and closet, or it can mean a nook in the front hall where a narrow bench might fit.  On one memorable occasion, we viewed a listing where the “den” in question was the hallway.  There is such a liberal interpretation for this word that it makes finding a unit with a proper den quite challenging.

We hope you enjoyed learning how to Realtorspeak and that you put it to good use at your next dinner with friends.  In all seriousness, Realtors are tasked with selling properties and as such part of our job is to try to put the most positive spin on a place that we can.  This means that the descriptions tend to be optimistic and forward looking, which is actually a nice way of looking at the world.

It does, however, mean that you can’t take most descriptions at face value when you’re reading a MLS listing.  If you or someone you like want a Realtor who can decode the Realtorspeak and find you a property that is actually great now – not just in the future with a lot of effort and money – please get in touch!

Whenever we work with tenant clients, we start off by having a heart to heart about how it works.

We’ve previously written about how landlords think and what they look for in a prospective tenant and the three questions they ask themselves.

This is a useful starting point for a tenant to understand the perspective of most landlords and if you haven’t read it, please do!  Today, we thought we’d get into how tenants can inadvertently make it very difficult to find a new rental property where the landlord wants them as tenants.

Below are the three biggest mistakes tenants make when looking for a new rental.  If you avoid these mistakes, you’re well on your way to making it easy to find a new place!

Mistake # 1 – You can’t afford that place.

One of the hardest parts of being an adult is balancing what you want against what you can afford.  This is particularly true when it comes to housing, both buying a place and renting a place.

On the buying side of things, we often have buyer clients who are approved for a mortgage (and monthly payment) that is more than what they’re comfortable spending.  This is a good situation, as it means they can buy a place under their approved mortgage limit and be comfortable with what it costs them each month.

The renting side of things is unfortunately often the other way.  Many tenants have a budget in mind that is feasible for their financial circumstances, but higher than the standard guidelines for rent to income ratios.

While it is not allowed to refuse a tenant on the grounds of a specific income to rent ratio, in practice many landlords follow the generally accepted rule of thumb where a tenant should not spend more than 30% to 40% of gross (before tax) income on housing costs.

The below chart has the “required” income based on monthly rent ranging from $1,500 to $5,000.

The green text columns are the annual, bi-weekly and monthly income needed at the 40% level, which is pretty much the lowest income a landlord would consider for the monthly rent in question.

The black text columns beside the green ones are the 30% level for the monthly rent.  Put the two together and you have the range that would likely be acceptable to a landlord for your income.

As of March, 2025, the average rent in the GTA is just over $2,700 per month.  We’ve highlighted that row in yellow in the chart above.  We can see that if a tenant can “afford” $2,700 a month for their rent, they need to make between $81,000 to $108,000 a year.  That’s $3,100 to $4,200 for the gross bi-weekly pay cheque, or between $6,200 to $8,200 a month.

If that seems like a very high income for that level of rent, you’re not alone in thinking so.  It is often a big surprise to tenants that a landlord thinks they can’t afford a place.  This is because tenants typically think that anything that is less than their monthly income is “affordable” to some extent.  This makes some level of sense as you can pay that rent each month based on your income.  There are of course, other significant expenses that people must pay for out of their income – food, transportation, personal needs and so forth.

With landlords looking to see someone spending 30% to 40% of their gross income on rent, and tenants willing to spend considerably more, you have the makings of a disconnect that causes problems.

If you’re a tenant setting your budget, set the number you’d be comfortable paying, that you’re confident won’t be an issue.  At the same time, find your income in the chart above to see what level of rent you’d be able to afford based on that 30% to 40% ratio.  If the number is similar, you’re in good shape to be able to show a landlord you can afford the place.  If the number you “qualify” for in the chart is much lower than what you need to spend in order to get the type of place you want, then be prepared to show the landlord how you will be able to pay the rent.

Mistake # 2 – You can’t live comfortably in that place.

The second biggest mistake that we see tenants make is applying for a home where the attributes of the home don’t match the needs of the tenant.

The most common example of this is where a number of people apply for a smaller rental where there doesn’t seem to be enough space.  This is a practical solution to the problem of affordability, where the rent being charged is too much for a single income, but possible for tenants who have multiple incomes amongst them.

Despite the property now being affordable based on the 30 to 40% ratio of rent to income, there is a disconnect between the size of the space and the number of people living there.  While a couple can live in a 500 sf space with a similar level of comfort as a single individual, if there are three adults, or additional children who are going to be living in the space, landlords are concerned about how this will be addressed.  Part of that concern has to do with wear and tear on the space from the additional tenants, but in some cases, it means changes to how the space was intended to be used.  A one bedroom unit with three adults applying to live in the space will likely see the living areas subdivided into sleeping areas.  Whenever a place is used in ways that are different to the intended use, accommodations are made to make it possible and they can cause damage to the unit.  If a bed is placed in a hallway, damage to walls will likely occur.  If a living room is converted to a bedroom and a bed located beside the kitchen, safety hazards can result.

It is illegal to charge a damage deposit in Ontario, so if you’re part of a tenant group that is trying to make a place affordable by having more people stay there, you need to be clear on how you’d respect the property.  Given tenants cannot offer a damage deposit, offering a higher rent than asked may be a way to provide the landlord peace of mind that any additional wear and tear won’t result in out of pocket expenses.

Mistake #3 – You don’t have a good (or any) track record.

The third big mistake that tenants make is underestimating the impact of not having a good – or any – track record for landlords to review.

The first aspect related to this is credit history.  Whether you’re a newcomer to the country, or just starting off into adulthood, a lack of credit history can be a challenge.  Landlords are always trying to assess whether a prospective tenant will be a responsible occupant of the property on a mid to long-term basis.  When there is a credit history showing responsible financial activity, with an accompanying good credit score, it makes landlords feel comfortable with the tenant.

While a limited credit history with no credit score is a challenge, it can be overcome by guarantors on the application who do have a lengthy credit history and a great credit score.  A much more substantial problem is for tenants who have made some poor financial decisions and have low credit scores as a result.  In such a case, we recommend tenants address the issue head on with their application, explaining how they got in that situation, and crucially, how it will improve.

Many tenants understand that a good financial track record is important, but they fail to realize that employment and rental history is also considered by a prospective landlord.

If you’re in a new role or industry, whether freshly graduated or simply in a new career, you need to be aware that landlords are uncertain as to whether you will continue to be employed in your current role.  This is somewhat unfair, as an individual employed for ten years at the same company can be fired the day after they start a new tenancy, but it is still an issue if you’re applying for a place after starting a new job.  In such cases, going above and beyond the typical job letter is important.  If you can provide a personal reference letter from your employer talking about your prospects in the career, that can go a long way to making a landlord feel comfortable.

Finally, a red flag for many landlords is a history of multiple rentals in a short term.  If you’ve stayed at your last three rental properties for a year at each, the question that arises is why you only stay that long.  If there were issues with the properties or the landlord that caused you to decide to leave, be cautious with sharing those complaints, as it can make you appear to be a demanding or unreasonable tenant.  If it was happening for reasons outside of your control, such as the landlords selling the property each time you were just getting settled in, share that story as part of your application.

When you are trying to find a new rental home, the above mistakes can make it very difficult to find a landlord willing to take you on as their new tenant.  While you cannot change aspects such as your current income, your family or your track record for credit, employment and tenancy, you can make efforts to address them directly with explanations.

If you need an agent to help you find your next home to rent, or you’re a landlord who wants a good tenant, then we’re here to help.  Get in touch with us to talk about the next steps!

For many homebuyers, the first step on getting onto the property ladder is purchasing a condo apartment.  While they aren’t as plentiful in smaller towns or cities, when they do exist they are almost always the cheapest option if you’re considering buying a home of your own.

For much of 2024, we’ve seen very elevated levels of condo apartments for sale.  As of December 20, 2024, there are 9,671 condo units for sale within the Greater Toronto Area.  If you’re wondering if that’s an unusually high level of options for condo buyers, the answer is a definitive yes.  We’ve currently got almost twice as many condo apartments for sale now compared to a couple of years ago.

With such high levels of supply and relatively few buyers on the demand side of the equation, there are many opportunities for getting a great deal on a condo apartment these days.  If you’re currently renting and are wondering if buying might make sense, then we’d say the answer is a definitive yes.  Let’s go through the math and explain why we think now is the time to get on to the property ladder!

What’s it cost?

While your specific situation will be different than the average, we gathered a bunch of data in order to be able to analyze the differences between renting and buying on an overall level.  We’ll make our assumptions clear as we go.

When we pull the data for the average cost to rent or buy a one-bedroom or two-bedroom condo unit in Toronto and beyond, here’s what we see.

The above chart uses data for the average rent and purchase price for Q3 (July to September) 2024.  We had to exclude Dufferin from this analysis as there just isn’t enough data to be reliable.

With an average rent in the GTA of about $2,500 for a one bedroom unit, or just over $3,200 for a two bedroom unit, it isn’t cheap to rent a condo apartment these days.  On the buy side, a one bedroom goes for about $578,000 in the GTA and a two bedroom costs about $200,000 more at around $782,000.

Durham is the cheapest place in the GTA to supersize your condo, as going from a one bedroom to a two bedroom condo adds just $77,000 on average.  Compare that against Halton, where buying a place with a second bedroom adds a whopping $250,000 on average.

OK, but what is the cost to carry a condo if you buy at those prices?

In order to do an apples to apples comparison, we ran the numbers to see how much it cost in each area to own that one or two bedroom condo unit.  Before we get to the results, let’s clearly state our assumptions:

• We assumed a 20% down payment, so there are no CMHC insurance costs, and we calculated the mortgage cost using a 4.99% interest rate with a 25 year amortization period.
• We put maintenance fees at $550 per month for the one bedroom units, based on the idea that such units are typically in the 500 to 600 sf range, and maintenance fees of close to $1 per sf are common these days. For the two bedroom unit, we upped that to $750 per month, based on the idea that they will be a couple of hundred square feet larger than the one bedroom units.
• We assumed a 0.07% mill rate for the property tax as that is a reasonable rate across the various municipalities in the GTA. We used the actual average price as the assessed value but given MPAC is always a bit behind (and currently very, very far behind), our estimates for property tax will be on the high end.  Better to assume it will cost more than too little!

Obviously, any changes to the above assumptions will impact the end result, but we wanted to use some base calculations to be able to compare across the different areas and for the one and two bedroom condo options.  Here are the results.

Let’s see how those monthly carrying costs compare against the different markets and for one and two bedroom condo units.

We can see that it costs between about $750 to $1,150 more per month to own a one bedroom condo compared to renting it.  Peel has the lowest percentage difference at just 32% more per month and Toronto and York are tied at 45% more per month to own compared than renting.

For two bedroom condo units, the range goes from about $1,050 to over $2,000 per month.  In percentage terms, Peel once again has the lowest difference, where it costs just 35% more to carry a two bedroom condo than it does to rent one, and Halton is the worst area, where it costs 68% more to own a two bed unit than it does to rent one.

While this tells us which markets get the best results if you buy versus rent, it also tells us that if you’re an investor, Peel is your best option.  If the difference between what you can charge for rent and what you have to pay to own is the lowest, it means you don’t have too much of a spread to cover.  An investor who put down more than 20% would quickly approach a cash flow neutral or positive property if they bought in Peel.

It still seems like renting is cheaper.

There is one part of the rent versus buy calculation that is often overlooked, namely the percentage of the mortgage payment that is principal repayment.  This is important because while the monthly mortgage payment is money you as an owner need to have available, a portion of that payment is effectively a forced savings plan.

At the 4.99% mortgage rate and 25 year amortization we used for our mortgage payment calculation, the payment is about 28% principal repayment and about 72% interest payment.  That’s from the first payment and the way mortgages work means that every subsequent payment is slightly higher principal repayment and slightly lower interest payment.  For each of the markets we can calculate the effective monthly mortgage cost and get a revised effective monthly cost.  This isn’t what you’d pay each month, but it is the number if you recognize that more than a quarter of your mortgage payment is building your equity in the unit.

Here’s how that math works out, when we calculate the principal repayment and what the effective mortgage payment is once you remove that forced savings aspect.

If we take that effective monthly mortgage payment and add in our other costs, we get an effective monthly cost to own, which we can compare against the actual rent.  Doing so means that we see the difference between what it costs to rent versus own shrink tremendously.

For one bedroom condo units, the effective difference between renting and owning is as little as $97 a month in Peel, up to $345 per month in York.

With two bedroom units, Peel is just $222 more per month (effectively) to own a unit and Halton is the worst option, at $944 more per month.

Anything else to consider?

The final part of the buy versus rent calculation is appreciation.  While the condo market has been very tumultuous over the last couple of years, the historic average for condo units appreciation has been about 6.29% per year.  That’s a significant equity gain that you don’t receive if you are renting, but at the same time, you haven’t invested the 20% down that we used in our calculations, and that money could be appreciating if you invested it.

We consider this part of the conversation to be out of wheelhouse, as forecasting appreciation in a given market is very challenging, and we can’t speak to likely returns on invested funds in the stock market at all!  In a very general sense, we’ll just say that if you own a condo unit, when you eventually sell it, you will either benefit from market appreciation, or lose out on market depreciation.  Historically, we’ve seen real estate appreciate and we believe that will continue, but we’ll let you decide on what you think will happen with this aspect.

Put it all together and we see the buy versus rent question as having a clear answer.

The high rent being charged in the GTA, when contrasted against relatively low sale prices for one and two bedroom condo units, means that the difference between the costs for owning and renting have narrowed considerably.  When you take into account the principal repayment portion of your mortgage payment, the difference can be as little as about $100 per month in certain markets.  Even at higher differences between the effective carrying costs when you own versus renting, the gap is nowhere near as extreme as many people think.

If you have a significant down payment available, you like the idea of building equity in your own home versus your landlord’s income property and you think real estate will appreciate over time, then now is a great time to buy a condo.  If that sounds like you, then get in touch with us so we can run the numbers for your specific situation!