No matter how hot the Toronto real estate market might be, renting a property can always present challenges. These challenges present themselves in the form of making the right decision about who to rent to, planning how you’re going to conduct maintenance and repairs, communicating back and forth with prospective tenants until you can create a rhythm, and the many other things that arise throughout the process.
Thankfully, if you do everything right and focus on getting the ideal tenant into your property, the challenges generally stop there. For Toronto property owners looking to rent out a condo over the coming months, a wealth of choice is currently available to you with regards to high quality tenants. By following these tips, you can be sure that you make the right decision and create a stress-free landlord-tenant relationship that works for both parties.
Know the market and the rules before making any decisions
The first thing you must do before setting out to rent your Toronto condo is study the market and understand the rules and regulations of renting a condo. Knowing the market will allow you to price your condo correctly, ensuring an appropriate ROI. To do this, you simply need to research what other similar condos in the area are going for, reach out to a landlord or two for some advice, and figure out what you need to charge in order to cover the lease and other expenses. According to TRREB’s Rental Report published in January 2021, condo rentals in Toronto were up in 2020, with one-bedroom condominiums renting for an average of $1,845/month, and two-bedroom condos being rented for an average of $2,453.
It’s also critical that you understand the rules and regulations involved in renting your condo – some buildings may not allow for it, or may require special conditions that must be adhered to. Check your condo agreement for any restrictions regarding rental and ensure that there’s nothing prohibiting your ability to rent it out. While you’re doing your due diligence, it’s always a good idea to take a good look at your insurance policy to property the unit and the building at large – the policy should ideally protect you from liability in the event that somebody is hurt in the condo, and should cover the contents of the unit.
Screen, screen and screen again
We can’t possibly stress this point enough: tenant screening is the most important step in the rental process. Without effective screening, there’s a very good chance you end up with a nightmare tenant who will make you second-guess your decision to be a landlord. When choosing between potential tenants, be proactive by screening for things like current employment and references from previous landlords.
By ensuring that tenants are regularly employed and that other landlords have had positive experiences with them in the past, you’re saving yourself a massive headache down the road and all but guaranteeing that they’ll pay rent on time and in full. Remember to treat each candidate equally and apply the same screening process to each and every applicant – this is actually not a suggestion, but the law. By knowing what to look for and being able to identify red flags, you’ll avoid bad tenants and ensure that your condo is rented to a reliable tenant who will work with you rather than against you. Unfortunately, this means screening for things like fake references (e.g. verify that the landlord reference really did own the last place they rented) and credit checks. At Highgate, we do not accept anything less than an excellent credit score for the tenants we screen for our clients.
Consider the benefits of property management
Sometimes there’s just not enough time in the day to do things like research the real estate and rental markets, review condominium agreements and leases, and effectively screen tenants. Thankfully, there are still options for people who can’t seem to find enough time in their day.
Toronto property management companies can take care of these time consuming processes for you, ensuring that your Toronto condo rental follows the rules, is appropriately (and competitively) priced, and is always occupied by only reliable tenants. Property management companies can also take over daily duties including tenant communication, inspections and maintenance so that you can spend more time on the important things in your life.
HighGate Properties is the leading provider of residential property management services in and around Toronto. Our property management experts will save you time and frustration by conducting effective tenant screening, taking care of regular maintenance with reliable contractors, and setting realistic rental prices so you can enjoy a stress-free landlord experience. For more information, get in touch with us today.