As Toronto home prices continue to rise, becoming a landlord and renting out your condo or loft can prove to be a wise financial decision. As housing prices continue to increase, making home ownership inaccessible for some, renting is becoming a popular choice (and sometimes the only choice) for many. Although the rise in housing prices may make purchasing a home more difficult, these price increases are beneficial for those looking to rent out their Toronto condos or lofts as landlords. A licensed real estate agent can assist you with renting out your condo or loft and ensure that your rights are protected. Below is a list of items that a licensed real estate agent can assist you with along with the benefits of using a real estate agent for finding a good tenant.
ADVERTISE/MARKET: As a licensed Toronto real estate agent I am able to market your property to potential tenants through different advertising and marketing methods.
PRE-SCREEN: Screening potential tenants is probably the most important step in finding the right tenant for your property. You want to have a tenant who is going to respect the property as if it were their own, follow any rules and restrictions and pay the rent on time. I am able to assist you with finding potential tenants and screening them in order to assist you with selecting a tenant that you feel comfortable with and who will hopefully be an ideal tenant. The pre-screening process will include me interviewing potential tenants over the phone, meeting with them in person to show the property and to learn more about them as a potential tenant.
FINAL SCREENING: Once I have pre-screened applicants and you have selected an applicant who you feel is the best option for your property, I will request a credit report and referrals. Once I have received contact details for referrals, I will take the time to contact each one in order to learn more about the applicant. Once I have completed these steps, I will meet with you to go over my findings.
PREPARE THE LEASE AGREEMENT: Once you have selected your tenant of choice, I will prepare the lease agreement and will ensure that your rights and interests are protected. During this process, you will be able to dictate the length of the lease, terms and conditions, the monthly rent amount along with other details.
MANAGE: If you are not in a position to manage the property on your own, I can put you in contact with several different property management companies which you can choose from. There are many reputable property management companies who can ensure that your property is kept in good condition, collect rent and keep you up to date with the status of the property and tenant.
Frequently Asked Questions
Renting out your Toronto condo or loft for the first time can be a confusing endeavour. Below is a list of common questions and answers that potential landlords have when considering the option of renting their Toronto condo or loft.
Q: How long is a typical lease? A: Lease terms in Toronto are usually for a 12 month period. Once the lease term comes to an end, the lease automatically becomes a month to month lease which means tenants are not required to commit to lease the property for another 12 months. However, during a month to month lease arrangement, the tenant is required to provide at least 60 days notice before moving out. As the landlord, if you prefer to have the tenant commit to another 12 months, you are able to request for the tenant to sign a new lease agreement upon the completion of the original 12 month lease agreement. If the tenant does not wish to commit to another 12 month period, you are then able to provide the appropriate amount of notice and terminate the lease.
Q: How much rent can I charge for my Toronto condo or loft? A: The amount of rent that you are able to charge will depend on the location, size of the unit, number of bedrooms and bathrooms and what amenities are included. Different areas of the city will demand different rent. For example, a 2 bedroom condo may rent for around $2,200/month in most areas of Toronto but may rent for around $2,500/month in central Toronto. As a Toronto real estate agent, I am able to assist you with determining an appropriate monthly rental amount based on a variety of real estate statistics, including the amount of rent charged for condos that have recently been rented in your area or building.
Q: Am I allowed to restrict pets? A: As a landlord, you are allowed to decline potential tenants if they have pets. However, once you have rented the unit to a tenant, you are not allowed to evict them for having a pet unless the condo rules specifically do not permit pets.
Q: Am I allowed to access the property once there is a tenant living there? A: Yes, of course you can, you own it! However, you must provide appropriate notice. Landlords are permitted access to their units in order to maintain, repair or to show the unit to potential new tenants as long as they provide 24 hour notice.
Q: What happens if I want to sell my condo or loft while a tenant is living in it? A: You are not allowed to evict a tenant in order to sell the property if there is a signed lease in place and it is during the term of the lease. However, you are able to sell the property with the tenant and the lease would then be taken over by the new owner. If the lease is on a month to month basis, you are permitted to provide 60 days written notice on behalf of the new buyer but only if the new buyer is planning on moving in themselves. However, the new buyer can not immediately evict the existing tenant for a new tenant.
CLICK HERE to review the Ontario Residential Tenancies Act
Contact me today to learn how I can assist you with finding the right tenant for your property, negotiating a monthly rental rate and the property management of your Toronto condo or loft. I’m here to help you with making the process an enjoyable and successful experience.