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!

The Toronto Regional Real Estate Board (TRREB) commissioned a report in November 2024 called “Breaking the Backlog – Restoring Fairness and Justice to Ontario’s Landlord and Tenant Board” and boy, is it a doozy.

We’re glad that TRREB is taking an active interest in this as the LTB is essential for maintaining balance and fairness in Ontario’s rental housing market, ensuring that both landlords and tenants can enforce their rights and obligations under the law.  You have likely seen headlines and articles about horror stories on both the landlord and tenant side of the equation and we’ve worked with clients on both sides who have been treated unfairly.  It all comes down to a system that isn’t working as intended, allowing bad faith players on both side to take advantage.

Let’s get into the situation and how to fix it.

First off, what exactly is this LTB you keep talking about?

The Landlord and Tenant Board (LTB) is a tribunal in Ontario, that resolves disputes between residential landlords and tenants. It operates under the Residential Tenancies Act, 2006 (RTA) and plays a critical role in administering rental housing laws in the province. The LTB’s primary functions include:

• Dispute Resolution: Handling applications from landlords and tenants regarding issues such as rent arrears, eviction, property maintenance, and lease disagreements.
• Mediation and Hearings: Offering mediation services to help parties resolve disputes and conducting formal hearings when necessary.
• Orders and Decisions: Issuing binding rulings and orders based on the evidence and arguments presented during hearings.

The LTB is part of the Social Justice Tribunals Ontario (SJTO), which oversees several tribunals focused on social justice matters. It employs adjudicators, who are independent decision-makers, and support staff to process and resolve cases.

What’s the problem?

The LTB has faced significant challenges in recent years, including extensive backlogs due to lengthy delays.  If you’re wondering how bad it actually could be, get ready.

As of February, 2024, the LTB had more than 53,000 unresolved cases.  While the specific of the cases vary, remember that the whole focus of the LTB is issues like rent arrears, eviction, property maintenance and lease disagreements.

Think about that – over 53,000 cases where there is a tenant who stopped paying rent, or a landlord who evicted a tenant illegally, or mould in the bathroom or broken locks, or even simply some other type of disagreement between landlord and tenant.

If you ever read a case of a bad tenant or landlord and wondered how that could happen and then said there must be laws against that sort of thing, you’d be right. There are laws and rules and right now there are over 53,000 people waiting for their case to be heard.

Speaking of waiting, with 53,000 unresolved cases, it is taking a while to get a hearing.  There is a pecking order of sorts when it comes to which cases get resolved the quickest, but “quick” is a relative term.

For example, the LTB says that urgent matters such as illegal lockouts and other high-priority requests get the fastest level of service, with about 5-6 weeks on average to have it scheduled.  Even better news is that most decisions (which are called Order) are issued with 30 days or less.  So, if you’re a tenant who has been illegally locked out of your rental unit, just sit tight for two to three months and you should be sorted.

Up until quite recently, the wait time for non-payment of rent issues was five months, plus of course the month or so before the Order would be issued.  The website for the LTB now says that takes approximately three months, and if that’s true, it still means four months of a landlord not being paid rent before they receive an Order.  Keep in mind that many landlords don’t go to the LTB to evict for non-payment of rent until the issue has become quite extreme.  It is not uncommon for landlords to be owed at least two months rent before they start the process, so in many cases, it actually means that a landlord is owed 8 months of rent by the time the tenant is evicted.

Less urgent matters than illegal lockouts or non-payment of rent are now being scheduled with 5-7 months, plus of course the month to receive the Order from the LTB.  No hot water in your unit?  File an application to the LTB and two seasons later, it may be addressed.  Lots of extra people living in the rental unit you own?  File an application to the LTB, and within six months, you should get an answer.  I’m sure the extra people won’t cause much wear and tear or complaints from the neighbours.

While it is landlord and tenant relationships at odds in these cases going before the LTB, 84% of applications to the LTB are from landlords, so the backlog and delays are dramatically impacting existing landlords as well as strongly discouraging investors from purchasing rental units in Ontario.

What’s causing this mess?

The TRREB “Breaking the Backlog” report identifies several key factors causing the backlog and delays at the LTB, so let’s review.

Understaffing:  The LTB has just 70 full-time adjudicators, far below what is needed to handle the volume of cases effectively.  Many of those adjudicators are new in their roles since 2023, so these aren’t seasoned experts who quickly and efficiently deal with complex cases.  Put bluntly, inadequate staffing levels directly limit the number of cases that can be processed daily, causing, you guessed it, a backlog.

Increased Case Volume:  A 23% increase in case filings over the past five years has overwhelmed the LTB’s capacity to keep up.  Things weren’t great a number of years ago, but the combination of more cases and staffing that isn’t keeping pace has meant it got much worse, quickly.

Outdated Technology and Systems:  The reliance on outdated, inefficient administrative processes and technologies creates bottlenecks in case management and resolution.  For example, applications can be done via an online portal but also can be submitted via email, or mail or in person.  Applications done via the online portal were entered into the system immediately, but emails, mailed in or in person submissions could take three months until they even enter the system!  While online hearings may seem like a great way to address delays and increase efficiencies, it has amplified accessibility issues amongst vulnerable groups.  Anyone living in poverty and lacking sufficient Wi-Fi or a private place have great challenges with online hearings.

To sum up, the current process for scheduling hearings, issuing decisions, and communicating with landlords and tenants is slow and lacks the flexibility to adapt to demand surges.  These issues collectively exacerbate delays, creating extended wait times for hearings and decisions.  The end result?  The mess we’re in right now.

How on earth do we fix the LTB?

While the problems are significant, there are steps that can and should be done to fix the LTB.  Some have already started but with the significant backlog and delays, we need it to be better, sooner.

The full report from TRREB goes into detail on recommendations, but here are the key steps.

Increase Staffing Levels: The LTB needs more adjudicators and support staff to process applications efficiently. Current understaffing significantly contributes to the backlog and delays in resolving disputes.

Modernize Systems and Processes: Upgrading outdated systems, implementing online services, and streamlining administrative procedures can reduce inefficiencies and enhance user experience.

Set Clear Timelines: Introducing mandatory timelines for hearing cases and issuing decisions would help reduce the unpredictability of wait times for landlords and tenants.

Provide Adequate Funding: Increased funding is necessary to support staffing, technological improvements, and other enhancements to ensure the LTB can meet demand.

Improve Accountability and Transparency: Ensuring that the LTB operates with greater oversight and regular public reporting on performance metrics can build trust and ensure ongoing improvements.

Doing the above things would be a great way to address the significant backlog of cases at the LTB while improving fairness and efficiency in Ontario’s rental housing sector​.

While an article about the Landlord and Tenant Board may seem like a strange focus for a team of real estate agents, we care deeply about housing in Ontario.  Within our team we represent both landlords and tenants and we’ve seen first-hand the challenges that the LTB is causing to both sides.  We believe the majority of landlords and tenants are looking for a fair agreement on rental housing and it’s time that the LTB became the solution to problems in the rental market.

If you’re a landlord looking to rent out a property, or a tenant trying to find a home of your own, don’t hesitate to get in touch with us.

When short-term rental platforms like Airbnb and VRBO first arrived in Ontario in 2009, they offered a new option to home owners or investors who were interested in making money off properties.  By competing against hotels and offering short-term rentals, property owners could realize significantly higher rental income than they could by renting out the home or unit to a long-term tenant.

During the initial heyday of these platforms, most municipalities didn’t have restrictions on short-term rentals.  It took a while for the platforms to grow in popularity and for municipalities to begin to see some problems as a result of the change.

In Toronto, it wasn’t until early 2018 that City Council approved the regulation of short-term rentals in Toronto.  Up until that point, short-term rentals existed in a bit of a gray zone and we saw pure income properties being rented short-term as well as some principal residences.

The initial regulations in Toronto were appealed to the Local Planning Appeal Tribunal (LPAT) and as such did not go into force.  The hearing for the appeal took place in August, 2019, and the City eventually received a positive decision at the LPAT, so it wasn’t until November, 2019 that the short-term rental regulations came into effect.

Over time, the rules, fees and taxes that apply to short-term rentals have increased, and we’ve also recently seen the CRA crack down on the sale of such properties, with significant tax impacts.  It’s time for a review of what it costs to register and operate an Airbnb, and what happens when you sell such a property, to see if it is still a good option.  Here we go!

The Good Old Days

When Airbnb and other short-term rental platforms arrived in Ontario back in 2009, there were no licensing, fees or specific regulations in place for this type of rental.  Cities had largely left the regulation of rentals to the province, with bodies such as the Landlord and Tenant Board and legislation such as the Residential Tenancies Act.  Short-term stays were done by hotels and those businesses were established and run by corporations, rather than individuals who had a home they didn’t stay in all year round.

The Times, They Are A Changing

By late 2019, rules for short-term rentals were in place in Toronto, but even now (late 2024) a number of municipalities in the GTA don’t have things set in stone.  Whitby, Pickering, Aurora and Newmarket are still working on the regulations, and as such it hosts are really only concerned about following local zoning, property standards, and tax requirements.

The initial rules in Toronto had a Municipal Accommodation Tax (MAT) that was set at 4%. This tax applies to short-term rentals and supports city tourism and infrastructure. Registration fees for owners were a very reasonable $55.

In 2023, Toronto raised the MAT to 6%, ensuring short-term rental operators remit this amount quarterly. To simplify compliance, Airbnb and similar platforms began to offer a remittance option on behalf of hosts.

Beginning in 2025, registration fees are set to increase drastically from around $55 to $375, highlighting a stricter stance against non-compliant operators.

No Investors Allowed

As municipalities created the regulations for short-term rentals, most decided that such rentals would only be permitted in a homeowner’s primary residence.  If you were an investor and didn’t live in a home, you could rent it out long-term (more than 28 consecutive days) but short-term rentals were no longer permitted.

This was done due to concerns about housing shortages, as the proliferation of short-term rentals in residential units had begun impacting the long-term rental market.

As of November, 2024, this is the case in Toronto, Mississauga, Oshawa, Oakville and Burlington.  Basically, if the municipality has developed regulations, the rule is short-term rentals are only allowed if it is your primary residence.

Wait, what’s that about HST?

In addition to the registration fee and the Municipal Accommodation tax, owners of short-term rentals also need to be aware of HST obligations.

Airbnb rental income becomes subject to the HST if the rentals are for less than 30 consecutive days (one month) and the rent charged is more than $20 a day.  Given the cost of stays in Ontario, almost all Airbnb properties charge more than $20 a day, so if you a host is doing significant levels of bookings, HST is charged on the stay, and due to the government.  This is in contrast to long-term residential rentals, which are exempt from HST.

While charging and remitting HST can be either neutral or slightly beneficial (as you can claim input tax credits on costs incurred in renting the unit), a much bigger problem exists when the owner of an Airbnb property decides to sell.

In October, 2024, the Tax Court of Canada ruled on a case and held that the sale of a used residential property rented out on Airbnb is subject to HST on the entire sale price.  A reminder that resale residential properties (i.e. not a new build where you’re the first buyer) in Ontario don’t have any HST charged on the sale.  This is the case even if the property was an income property and rented out on long-term basis – but not if it is being used for short-term rentals.

In the ruling that came down, the judge ruled that at the time the owners sold the property, it was not a tax-exempt residential complex, since for tax purposes it was similar to a hotel, motel, inn, boarding house or lodging house. All of the condominium leases for the 14 months before the sale were for periods of continuous possession of less than 60 days, i.e, short-term rentals.

As a result of the “commercial rental operation” during that time, the entire sale price of the condominium was not exempt from HST.  This means that if you own and operate a property as a short-term rental, you can expect that the CRA will treat the sale of that property as one that should charge and remit HST.  The exact amount of HST owing would require a tax specialist to determine, but it is obviously significant dollars given the 13% HST rate.

If the seller doesn’t realize that HST should be charged, and doesn’t include wording in their Agreement of Purchase and Sale related to the sale price being plus HST (rather than inclusive of HST), they will be out of pocket for the HST that should have been charged.  Even if the seller knows this may happen, they face a situation where their property becomes extremely unappealing to buyers who will have to pay HST on the purchase, compared to another property they could buy that wasn’t used for short-term rentals and therefore doesn’t have HST charged on the sale.

In short, the disposition of properties that were used for short-term rentals may result in a significant loss of equity in the home due simply to the HST component that has to be made up for – either by the seller directly to the government, or by the buyer who would demand a reduction in the purchase price.

When an Airbnb host has to pay a registration fee, charge a municipal accommodation tax and charge HST, it is no wonder that the days when Airbnb was a cheaper option than hotels are gone.  As prices rise for guests, it seems logical that occupancy levels would be lower and that owners will make less revenue on the unit.

Add in the significant tax hit at the sale of the property and there is a very real question as to whether Airbnbs or other short-term rental options are still financially viable.  Long-term rentals may bring in less revenue on the surface, but with significantly lower costs to manage and operate and no HST issues upon selling, the equation has shifted considerably.

If you are considering how to best benefit from a property that you own that you don’t live in full-time, then we’d love to walk you though the options.  Get in touch with us and we’ll start the ball rolling!

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!

A couple of years ago we wrote an article about the way landlords decide on a prospective tenant for their rental property.  We’ve had great feedback from our landlord clients about how useful that review was and it has served as a primer for our clients who are new to being a landlord!

While the majority of our work on the rental side is with our investor/landlord clients, we do sometimes help tenants find a place to rent, often as a precursor to buying in the future.  With that in mind, we thought we’d flip the script and talk about how tenants think about rentals the three questions they answer before deciding on whether they’re interested in a given property.

Let’s get into it!

Question #1 – Does it have what we need?

The most fundamental question all tenants ask is whether a potential rental property has the necessary attributes they need.  While these can vary tremendously from tenant to tenant, let’s review the big considerations that go into answering this question.

First and foremost, does it have enough space?  While this is often determined in the form of number of bedrooms, we’ve seen lots of tenants who make do with different layouts or fewer bedrooms than they’d like if there is enough square footage.  A family with two kids might want separate bedrooms for the kids, but they might consider a rental with a large enough bedroom that could accommodate two separate areas for each child.  If there just isn’t enough square footage, where the tenant can’t figure out how they could actually live in a happy fashion in the space, they just don’t proceed.

Secondly, can everyone in our family actually live there?  This may sound like we’re talking about the amount of space, but we’re actually talking about any restrictions due to layout or policies.  If you have someone with limited mobility, too many stairs or too small a bathroom can make an otherwise perfect rental a no-go.  Similarly, if you have a beloved pet and the rental doesn’t permit pets, the search continues.  While we see fewer smokers these days, a tenant who smokes may refuse to consider a property that doesn’t permit smoking or at least have a balcony or easy access to an outside area where they can smoke.

The final big consideration for this question is whether any must-haves are missing at the potential rental property.  The list of what is a “must” varies from tenant to tenant, but dedicated parking is often a key requirement, as is in-home laundry.  It is all a function of lifestyle and what the tenant considers crucial in a home.  In some cases, they can manage with some version of it, but in other cases, it’s either there or not.

Question #2 – Can we make it work?

As we alluded to in the above section, tenants will often be willing to come to a compromise about a desired attribute in a rental.  This can mean on-street parking if the rental has no dedicated parking, or shared laundry rather than exclusive laundry.  We often see tenants who think creatively when it comes to finding the space they need.  If two roommates both need a home office, some layouts with the same square footage as another may allow that to happen, whereas it just doesn’t work with the other option.

In a more general sense, tenants have to look at what tweaks and upgrades they can do to a unit to make it acceptable to them.  Unlike when you buy a home, tenants often don’t have the ability to make substantial improvements to a home.  Someone buying a condo unit may be fine with the outdated flooring and kitchen because they can replace and update both.  The same unit that is for rent faces a far greater challenge, as tenants have to live with the home “as is” to a great extent.  We often see tenants who want to paint to refresh or brighten up a space, change light fixtures or do other relatively quick and cheap updates to make it more to their liking.  A rental unit that works in a broad sense but isn’t too appealing often has lots of applications where the prospective tenant is wanting permission to do such updates.

There is of course a financial element to this question as well.  While landlords are focused on whether a tenant can afford the rental rate and how much of their income is going towards housing, tenants are often focused on if they can afford it at all.  While we see many tenants that are comfortable (or willing to pay) rent that is a significant percentage of their income, it is quite rare to see a tenant consider a property they just can’t afford on a monthly basis.  If we had to put it simply, landlords look to see whether tenants can afford the home if their finances took a turn for the worse, while tenants look to see if their current income (or even hoped for future increased income) is enough.

Question #3 – Does it feel right?

The final question that tenants must answer before they decide if they want to proceed with a rental application is whether the property feels like their next home?  This question is mostly removed from the specific attributes of a home and more about the property, building, location, and neighbourhood.

There are often places that seem great on paper and fit the bill for a prospective rental unit, but that the tenant finds unappealing when they visit.  This is particularly common when there is a disconnect between the rental unit and other aspects.  For example, a renovated condo unit that looks great in photos and has all the required attributes may attract lots of showings and interest.  If, however, the building, the grounds, the lobby area and the common areas are older and not in great shape, prospective tenants may decide against it.

If a tenant has previously had a negative experience with a landlord, or been evicted due to a renovation or sale of their rental, they are often very focused on the landlord’s behaviour during the application process and the future plans for the rental property.  Much like many landlords look for long-term tenants who will pay the rent, keep the property in good shape and not cause problems, many tenants are looking for landlords who will uphold their side of the responsibilities and who will let them enjoy the rental and live there for a length of time.

When we work with rental properties on either the landlord or tenant side, we see the above questions (and the corresponding answers) dramatically impact the likelihood of whether a rental will quickly find a new tenant or sit on the market for a length of time.  If a rental unit lacks the fundamental attributes that most tenants are looking for, if the tenants can’t find a way to make it work despite any shortfalls, and if it just doesn’t feel like a place the prospective tenant would be comfortable living in, expect it to take a while to rent it out!

We hope this was a useful review of the way tenants think about potential rentals.  If you’re looking for a rental right now, remember that the landlord view is focused on whether you can afford the home, if you have a good track record and whether they feel comfortable with your overall application.  It is only when a place works for a tenant and the tenant profile works for a landlord that leases are signed and tenancy take place.

If you’re looking for help on either side of the rental transaction, get in touch with us to see if we can help!