May 3rd, 2019 | Condos
Thinking Of Renting Your Condo?

With the number of condo buildings going up in downtown Toronto, renters are flocking to get a piece of the action, especially since Spring and Summer is around the corner.
We’ve seen a shift of people leaving rental apartment buildings and moving to condos. A lot of these buildings are newer, with shiny wood floors, stainless steel appliances and quartz counter tops, not to mention the amenities, which is definitely appealing to the younger generation. Generally the vacancy rate in condo buildings are lower then 1% in comparison to apartment buildings that are experiencing vacancy rates of 3%-4%.
Renters are willing to spend more money per month on rent versus your traditional apartment buildings for these luxuries and conveniences of living close to their workplace and being where all the action is like restaurants, bars and clubs.
Having said that, it’s a great time to take advantage of this market and cash in. If you currently own an investment unit in downtown Toronto and are thinking of renting it, here are a few tips you should follow to ensure you get the best possible tenant.
Remember in the province of Ontario, the tenant has a lot more rights than a landlord, it’s not that easy to kick out a bad tenant.
Credit check is key!
Seeing someones credit gives you a sense for the person’s credit worthiness, are they paying their bills on time, have they accumulated a lot of debt and living off credit? Also do they have any current judgments or collections against them. If so, how do you expect them to pay their rent on time? You can direct potential tenants to Equifax or Transunion to pull their own credit, it’s a soft credit check so it does not affect their score. Make sure they give you the full report, not just the score.
Landlord Reference, yes please!
Don’t be afraid to ask any potential tenants for their 2 previous addresses and their landlord contact information. Also ask them why they are moving, was it the landlord or the tenant deciding on the move? Once you have this information, actually call the landlord and ask them how the tenant was. Were they disruptive, were they extremely messy, what condition did they leave the apartment in, did they pay the rent on time? This gives you clues as to the character and cleanliness of the tenant.
Job letter, I think so!
Once again don’t be afraid to ask for a current job letter stating how long they have worked at their current job and how much money they’re making. This shows you the stability of their position. If they just started a job, they are most likely on a 3 month probation which means they can be fired any time without a reason, which means no money for rent. Also it will give you an idea if they can even afford your condo. Lastly, make sure to call their place of employment to verify they actually work there and are making the money stated on the letter. With computer programs like Photoshop and Illustrator, anyone can make up their own employment letter.
A social media snoop is always good!
We live our lives on social media, so your new tenant probably does too. Find them on Facebook or Instagram and snoop their profiles. Are they partying every weekend getting wasted or having nice dinner parties at home. Do they have a partner that will be staying over all the time, effectively having 2 people live in your unit, not one. Do they smoke or have pets that they didn’t disclose? All of this slowly starts to paint a picture of who they are. Go as far as meeting them before signing the paperwork to ensure you are truly comfortable.
Landlord and Tenant Board should be your new BFF!
Like I mentioned previously, tenants in Ontario have a lot more rights than landlords when it comes to almost everything. Therefore, as a landlord you should know your rights too and the processes for dealing with certain situations with tenants. Getting yourself familiar with the Residential Tenancies Act is a good start as well as knowing there is help out there through the Landlord and Tenant Board (LTB). The LTB’s website is very informative and user friendly, you can also call them to ask various questions. As a landlord you must always think of the worst case scenario and be ok with dealing with the situations that may arise. If not, then it’s time to grow a backbone.
Although this may sound like a lot of time consuming work, in the end, isn’t it worth it for a great tenant? A few hours spent now, can save you a lifetime of headaches later. Not up for the job, then hire a Realtor, we will take care of all of this for you. If you are thinking about renting your Toronto condo, don’t hesitate to give us a call!
Aleks – 1-416-707-1209
Amir – 1-416-528-7325
