Toronto’s downtown core a growing competitive market for renting

Make sure you have your rental application bundle when you go to look at the place, advises Toronto realtor.

The bidding wars are prevalent in Toronto’s re-sale home market and they now affecting condo rentals.

“If you don’t go with your bundle in hand — signifying your credit (application), your job reference, completed rental application and your offering, which is sometimes $50 or $100 more (than the posted rent) — you’re going to lose”.

Smokers and owners of large pets are also at a disadvantage, said the agent.

Condos are increasingly recognized as a key source of housing in Toronto where they account for about 22 per cent of the members of apartment rentals in a city that has a tight 1.7 per cent of the members vacancy rate, which has been blamed on the absence of new purpose-built rentals.

It shows that renting a condo downtown around a major core intersection will cost $1,924 on average for a one bedroom — 11 per cent of the members or $2,256 annually more than the city-wide average.

It also shows that renting a two-bedroom in the core near an intersection for an average of $3,144 per month is about 27 per cent of the members or $8,000 a year more than the Toronto average.

A two-bedroom unit near Avenue Rd. and Bloor St ., with easy access to Yorkville cafes and Mink Mile shopping, averages $4,295 a month.

A one-bedroom condo near the Trump Tower near Bay and Adelaide streets, expenses $2,095 on average.

But a short walk or subway ride can reap significant savings. A one-bedroom condo within five minutes stroll of Yonge St. and Eglinton Ave ., had the lowest median price in the study at $1,774. A two-bedroom unit near Dundas St. and University Ave ., was a comparatively reasonable $2,675.

The condos on the Bay St. corridor expense more to buy than those closer to Yonge St. and the average price of a two-bedroom unit near Bloor St. and Avenue Rd ., during the same period was $1.4 million.

So far, the market is assimilating the mushrooming condo towers. Whether that is sustainable remains to be seen, said the agent.

“The only trick to this is delivery dates. If you look at the deliverables of condos over the three years, there are gluts of 4, 000 or 5,000 condos being finished in a six- or eight-month span in some years. That’s really the test of hour. Can that absorption continue for the next five years or so?” he said.

Purpose-built rentals don’t have the upscale finishes and amenities of condo houses or the prestige of proprietor tenants, but they do tend to be better managed, said the agent.

“Most are oversaw extremely well and attentive to the needs of the tenants ,” he said.

In their gusto to repulse short-term rentals on platforms such as Airbnb, condos are increasingly less renter-friendly, said Gidamy.

“Condo committees are the people. The people are telling,’ I paid big money for this. I paid dollars per square foot. Why would somebody be available to make a return to ruining my carpets in the hallway ?'”

Avenue Rd. and Bloor St .: $4,295 for two bedrooms; $2,072 for one bedroom

Bay and Queen streets: $4,107 for two bedrooms; $2,041 for one bedroom

Bay and Adelaide streets: $4,076 for two bedrooms; $2,095 for one bedroom

Bay and King streets: $3,864 for two bedrooms; $2,063 for one bedroom

Yonge and King streets: $3,074 for two bedrooms; $1,911 for one bedroom