One of the most common questions we get from landlords is how they can find quality tenants faster. With liv.rent‘s new Suggested Tenants feature, we make it easy. For each new listing you post, you’ll be shown an automatically generated list of prospective tenants whose search filters align with your listing. This makes generating leads easier as you essentially start off with a pre-made list of potentially interested renters that you can get in touch with. 

So how do you find and contact your curated list of Suggested Tenants? Read on for our step-by-step guide on how to make full use of this new feature.

1. Select your property

Navigate to your Listings tab in the app or web platform and click on the listing you would like to rent out.

2. From the menu, select “Suggested Tenants”

All tenants whose search preferences match your listings will automatically appear in your list. From here, you’ll be able to see a basic profile view of their Renter Resume, which includes their name, job, salary range, and rental budget.

3. Review them carefully

‘Like’ the ones that interest you the most to curate your list of viable tenants. Make note of how complete their profiles are, and also pay attention to see if they have a verified badge next to their name. If their profile includes a badge, that means they have submitted a government issued ID and have verified their profile.

4. Start the conversation

Initiate a ‘chat’ with your curated list of candidates. You can invite them to book a showing,  

Pro Tip: When renters apply to your listing, you will get a full view of their Renter Resume including their Trust Score, which includes information like credit and payment history. Read more about the Trust Score™ and how it helps landlords find and screen tenants here.

5. Tips on how to reach out to your suggested tenants

Typically, tenants get in contact with landlords whose listing they are interesting in renting. With the Suggested Tenants feature though, we’ve made it easy for landlords to initiate contact and be proactive about renting out their listing.

If there’s a suggested tenant with an especially high Trust Score, or who aligns well with your values, don’t hesitate to reach out! Here are a few tips for getting in touch with your Suggested Tenants.

• Ask them if they’re still looking for a place — Similar to renters asking landlords if the suite is still available, landlords can also gauge potential tenants interest. From there, you can ask:
• See if they’d like to book a showing — Since you already know they’re looking for something similar to your listing, why not see if they’d like to book a showing? It’s nice to add that you saw them in your Suggested Tenants and loved their profile. 
• Give them more details on your listing — Since you’re messaging them first, be sure to let them know a bit more about your listing and and how it aligns with what they’re looking for. 

And, just like that, you’ve found and hopefully engaged a selection of tenants looking for a listing just like yours! The Suggested Tenants feature gives landlords quick access to leads who are already interested in what they’re offering — another way we’re making the rental process easier for everyone.. 

Check out our post on Landlord Web Features and learn how easy it is to manage your properties, applications and agreements online, or in the liv.rent app!

Have some feedback for us? Any other features you want to learn more about? Contact us via Live Chat during business hours or email us anytime!

Rethink The Way You Rent

Not on liv.rent yet? Experience the ease of digital applications & contracts, verified tenants & landlords, virtual tours and more – all on one platform. Sign up for free or download the app.

Subscribe to receive the latest tenant & landlord tips and get notified about changes in the Canadian rental market.

>> Stay up-to-date on the average rent in Vancouver, Toronto and Montreal: Rent Reports.

The post What Are Suggested Tenants? appeared first on liv.rent blog.

Right now, the borders are still closed to international travel and the city isn’t seeing the usual number of tourists, international students, and immigrants which has had a big effect on the city’s overall vacancy which is way up.

This month, we’re taking a closer look at the reported average rent prices for February across the Greater Toronto Area. Based on data gathered from our own liv.rent platform and other listing websites, our rent report shares key market data and trends to help keep landlords and tenants make informed decisions as we continue to head into 2021 full steam.

Jump to the following Toronto Rent Report sections:

February 2021 Toronto Rent Trends

Here we take a look at the average rent of a 1 bedroom, unfurnished apartment over a 6-month period from September 2020 to February 2021. The drop in rental rates continues in Toronto, a trend that is expected to continue into spring.

We encourage you to subscribe to our mailing list for updates on the Toronto rental market and for our continued reporting on the impact of COVID-19 on the rental industry.

Month-to-Month Rent Change

Below, we show the percentage change in average rent from January to February’s figures. Some of the volatility of last month appears to have abated in some neighbourhoods in the GTA, though unfurnished rentals have dropped across the board. Most noticeable dip this month came from Brampton: where last month saw the area’s rates rise 5.07%, February saw a dip of 1.21%. In furnished rentals, Etobicoke saw a dramatic rebound to 5.20% from -3.23% in January.

Toronto Furnished vs. Unfurnished Averages

What is the average rent in Toronto? The average rent in Toronto for an unfurnished one-bedroom apartment is $1,676 down from January’s $1,700. The average rent in Toronto of a furnished apartment rose, however, to $1,749 from January’s $1,717.

Neighbourhood Breakdown

Brampton continues to have the lowest average rent in the GTA for an unfurnished, 1 bedroom unit at $1,363, down from January’s $1,450. Curiously, a furnished rental in Brampton cost less this month at $1,320. While the highest average 1 bedroom rent in the GTA for a similar home in February was, predictably, in Downtown Toronto at $1,873, down again from January’s $1,903.

To assist you further in your rental decision, here is a breakdown of rental averages across other GTA neighbourhoods. Comparing 1, 2, and 3 bedroom rates for both unfurnished and furnished listings across each neighbourhood.

Average Rent in Canada

The slide in average rents in Toronto pushed rents lower but Toronto remains the most expensive city in Canada in a city by city comparison. Toronto’s average rent in January was $1,676 compared to Vancouver’s $1,661.

Vancouver has always been a close second but the decline in rental rates has been less dramatic there, resulting in a smaller disparity between markets. There are many similarities and a few key differences between the two most popular and expensive cities in Canada, discussed in our Cost of Living comparison – link below.

Downloadable Resources

Bring the latest rental averages and trends to your next video conference with our custom virtual backgrounds. 

Looking for the full report? Download it for free here.

Rethink The Way You Rent

Not on liv.rent yet? Experience the ease of digital applications & contracts, verified tenants & landlords, virtual tours and more – all on one platform. Sign up for free or download the app.

Subscribe to receive monthly updates on Canada’s major rental markets. Discover last month’s Rent Reports below:

Vancouver Rent Report
Ontario Rent Report
Montreal Rent Report
Calgary and Edmonton Rent Report

COVID-19 Resources 

For information regarding Coronavirus (COVID-19) and landlords and tenants, refer to our comprehensive resource posts. They include information on the various federal and provincial assistance initiatives available to help support landlords (small business relief) and tenants (rent relief):

• Coronavirus (COVID-19) Canada – Support For Landlords
• Tips for Moving During the COVID-19 Pandemic

The post February 2021 Toronto Rent Report appeared first on liv.rent blog.

Now a month into 2021, COVID-19 restrictions continue to have Vancouverites working and studying from home. The vaccines are continuing to roll out, but precautions are still being taken to protect homes against the virus.

We’re taking an up-to-date look at what the cost of rent in Metro Vancouver in 2021 is based on data from our own liv.rent platform and other listings websites. Based on what we found, we’re seeing some upticks in rental rates in certain areas. Our rent reports seek to identify and share key market data and trends, to help inform and educate landlords and tenants alike.

Jump to the following February Vancouver Rent Report sections:

Average Rent across Greater Vancouver

Here we see the average rent of a 1 bedroom, unfurnished apartment over the 6-month, September-February time frame. The average rent for unfurnished, 1 bedroom apartments continuing to decline from January’s rates.

We encourage you to subscribe to our mailing list for updates on the Vancouver rental market and for our continued reporting on the impact of COVID-19 on the rental industry.

Month-to-Month Rent Change

Continuing from January, the greatest volatility continues to affect the furnished rental market which is typically shorter-term rentals for travelling professionals, international students, or temporary visitors. This month, the trend is most prevalent in some parts of Greater Vancouver with West Vancouver seeing a dramatic seeing a 14.10% dip in furnished rental rates, while Coquitlam notable bucks the trend again, with furnished rentals rising 7.69% from last month’s 4.88%. New Westminster had a dramatic turnaround in the unfurnished rental rate: January saw a dip to -1.99%, where February sees a spike to 3.35%.

Income to Rent Ratio

An Income to Rent Ratio determines the percentage of monthly or annual gross income a tenant applies to rent payments. This month we share this quarterly metric with our readers. As evidenced below, renters across the Lower Mainland spent a significant portion – 40% – of their income on rent in the final quarter of 2020 up from 37% in Q3 2020. This is interesting given the downward pressure on rental rates through most of 2020.

Rent per Square Foot

Rent per Square Foot is a key indicator of value for money, however, it does not take into account variables like transit accessibility, distance from downtown and rental amenities. Based on raw figures alone, the average rent per sq. ft across Metro Vancouver was $2.55 with the suburb of Surrey offering the best value for rent dollar at $1.67/sq. ft.

Renter Demographics

As in January, the vast majority of rental seekers in February, 45%, fell into the 25-34 yr old category while 29% were in the under 25 category.

Pet-Friendly Rentals

liv.rent continues to host more pet-friendly listings than any other platform with more than a third of listings (38%) willing to welcome household pets vs. 26% on other rental platforms.

Average Unfurnished vs. Furnished Rates 

How much is rent in Vancouver? The average rent in Greater Vancouver for an unfurnished one-bedroom apartment in January was down slightly to $1,661 from January’s $1,670. The average cost of a furnished apartment also decreased to $1,859 from last month’s $1,905.

Neighbourhood Breakdown 

To assist you in making your rental decision, here is a breakdown of rental averages across other Greater Vancouver neighbourhoods, comparing 1, 2, and 3 bedroom rates for both unfurnished and furnished listings across each neighbourhood.

Surrey maintains the lowest average rent in the Greater Vancouver area for a 1 bedroom, unfurnished unit at $1,293, down from January’s average of $1,336. Where January saw a recovery in the furnished rental rates, almost all Greater Vancouver areas saw another drop in February, with Downtown Vancouver falling to $2,082 for a 1 bedroom.

Most Expensive Cities in Canada

The cost of living in Vancouver remains high as compared to every other Canadian city, except Toronto and the gap between the two continues to narrow.

Downloadable Resources

Bring the latest rental averages and trends to your next video conference with our custom virtual backgrounds. 

Looking for the full report? Download it for free below.

Rethink The Way You Rent

Not on liv.rent yet? Experience the ease of digital applications & contracts, verified tenants & landlords, virtual tours and more – all on one platform. Sign up for free or download the app.

Subscribe to receive monthly updates on Canada’s major rental markets. Discover last month’s Rent Reports below:

Vancouver Rent Report
Ontario Rent Report
Montreal Rent Report
Calgary and Edmonton Rent Report

COVID-19 Resources 

For information regarding Coronavirus (COVID-19) and landlords and tenants, refer to our comprehensive resource posts. They include information on the various federal and provincial assistance initiatives available to help support landlords (small business relief) and tenants (rent relief):

• BC Restart Plan: Guidelines for the Renting/Real Estate Industry
• Coronavirus (COVID-19) Canada – Support For Landlords
• Tips for Moving During the COVID-19 Pandemic

The post February 2021 Vancouver Rent Report appeared first on liv.rent blog.

Video Transcription

This article is a transcription of our live liv.talk webinar 2020 Vancouver Rental Market Recap + 2021 Predictions. Watch the video or download the full report for the best insights on the Vancouver rental market in 2020 and upcoming trends to look out for in 2021.

Table of Contents

2020 Vancouver Rental Market Recap: Top 8 Insights

As mentioned, rental markets in cities across Canada experienced significant challenges this year as a result of COVID-19 – Vancouver was no exception. Though rental rates were slower to drop, they did. Net immigration to the city by immigrants, international students and out-of-province workers slowed significantly, plunging 111% in the first half of 2020.

This lead to a significant reduction in demand for rentals, higher vacancy rates and subsequent downward pressure on rents. Exacerbating this situation, on the one hand, was the conversion of short term rentals to long term rentals as the travel market shrunk dramatically due to COVID-19 and new business license requirements were introduced. On the other hand, additional condos were added to the city’s rental housing supply as more and more owners sought to avoid paying the Provincial “Speculation and Vacancy Tax” and the City of Vancouver’s “Empty Homes Tax”.

In addition to these trends, here are our top 7 take-aways from the 2020 Rental Market in Vancouver:

1. Vancouver saw the smallest % change in rental prices

Compared to other Canadian cities (Toronto, Montreal and Ottawa), Vancouver experienced the smallest overall change in rental rates and overtook Toronto as the most expensive city in Canada.

In terms of where the most significant changes occurred, Vancouver saw the steepest declines for furnished 1 bedroom rentals (down 2.4%) and unfurnished 1 bedroom rentals (down 1.4%).

2. Steepest declines in demand were for 1 bedroom rentals

The average rent for an unfurnished 1 bedroom rental fell by 1.4%. In comparison, an unfurnished 2 bedroom rental saw a lower decrease at 1.1%. Given that many people started working from home, there was also a noticeable increase in demand for 2 bedroom rentals; people sought for more space often designating the second bedroom as an office.

3. Furnished rentals saw a larger % drop in rental rates compared to unfurnished units

It isn’t entirely surprising that the furnished rental market experienced bigger declines – an overall 8.9% drop vs only a 3.5% drop for unfurnished rentals. As international students returned home, tourism all but stopped, and business travel was curtailed, the market for furnished apartments faded, forcing prices downward.

Hit hardest were furnished multi-bedroom rentals which saw a significant decrease in prices – 2 bedroom furnished units experienced a 9.6% drop and 3 bedroom units had an 11.8% drop.

On the other hand, the average price drop for unfurnished rentals was mostly attributed to a decline in rental rates for 3+ bedroom units which saw a 6.5% decrease. In contrast, unfurnished 1 bedrooms dropped only -1.4% and 2 bedrooms dropped by -1.1%.  

4. Unfurnished rentals saw a slight rebound during summer months

Due to a decline in COVID-19 caseloads during the summer months, Vancouver unfurnished rentals enjoyed a slight recovery with unfurnished 1 bedroom rentals increasing by 0.6% and 2 bedrooms by +4.8% (compared to 2019).

5. Downtown, South Vancouver and Surrey saw the largest % drop in rental rates

Vancouver’s downtown core, as well as Surrey and South Vancouver experienced the biggest declines in rental rates. For furnished rentals, Downtown rates dropped by 19.5%, Surrey dropped 16.8% and South Vancouver dropped 14.6%. In comparison, for unfurnished rentals, Downtown decreased by 7.2%, Surrey declined by 10% and South Vancouver dropped 6.9%.

Vancouver:
The most dramatic decrease in Vancouver occurred in the furnished rental market; primarily, the average rent for 3+ bedroom rentals declined by 27.1%. This trend was likely caused by students returning home since larger units were often shared by roommates. Likewise, unfurnished 3+ bedroom units declined the most at -12.1%. In contrast, an unfurnished 1 bedroom rental only declined by 2.5%.

South Vancouver:
South Vancouver rentals saw the greatest volatility in the furnished market. Similar to Vancouver, 3+ bedrooms units experienced the biggest drop; furnished rentals fell by 17.3% and unfurnished rentals fell 8.8%. For 1 bedroom units, furnished rentals fell by 10.4% and unfurnished rentals fell by 6.4%.

Surrey:
With the biggest drop in 3+ bedroom units, Surrey saw a decline in rental price at 20.8% for furnished rentals and 18.3% for unfurnished rentals. Unfurnished 1 bedroom rentals held steady, experiencing a slight 0.3% decline while similar furnished units dropped 10.9%.

6. North Vancouver and Coquitlam markets showed resilience

It wasn’t all doom and gloom. Some Vancouver area suburbs actually saw rental rates increase. As many shifted to remote work, living centrally became less important. Without the need to commute, some took the opportunity to move to more spacious rentals in areas where the cost per square footage is much lower than in Downtown Vancouver; for instance. Coquitlam, North and West Vancouver all experienced positive increases in rental rates.

North Shore:
The North Shore rental market has been remarkably resilient. Since the early days of the pandemic in March, North Vancouver has experienced an upward pressure on rental prices. In fact, furnished 1 bedroom rentals in North Vancouver were the only rental product that saw a year- over-year rent increase compared to 2019. West Vancouver’s rates also began to follow North Vancouver’s upward trend in August and continued to stabilize.

Coquitlam:  
Overall rental prices for unfurnished properties in Coquitlam increased by 1.5% with 2 bedroom units experiencing the largest increase at 12.2% and 1 bedrooms, a 2.2 % boost. Furnished rentals in Coquitlam also saw demand and rates for 1 bedroom units increased by 4.7%. However, rents for 2 and 3 bedrooms furnished units declined by 1.7% and 3.1% respectively.

7. Burnaby and New Westminster saw a slight uptick in rental rates

Burnaby:
Vancouver’s closest suburb to the east, Burnaby saw rates increase slightly – 0.5% – year over year with a spike in rental rates in December – Furnished 1 bedroom units in Burnaby saw a 2.8% increase, while 3 bedroom units saw a 22.6% rental price increase.

New Westminster:
Furnished 1 bedroom units saw a year over year 0.5% increase for unfurnished rentals and 0.6% for furnished units. In December, furnished 1 and 3 bedroom rentals increased by 1.0% and 12.6% respectively.

Other cities in Metro Vancouver that saw a positive increase during December:

• South Vancouver: Unfurnished 2 bedroom rentals increased by 7.6%
• Surrey: Unfurnished 3 bedroom rentals increased by 7.5%
• Coquitlam: Unfurnished 1 and 2 bedroom rentals increased by 0.6% and 12.4% respectively
• North Vancouver: Furnished 1 bedroom rentals increased by 15.6%
• West Vancouver: Furnished 1 bedroom rentals increased by 20.1%

2021 Vancouver Rental Market Forecast: Top 7 Upcoming Trends

1. Demand for space will continue to push renters further from Downtown Vancouver

With remote work becoming the norm for many, people sought for extra elbow room. Vancouverites soon realized it was more cost-effective to move further away from the city centre where the cost per square footage was lower. For those wanting a bigger rental home, places like Surrey, Burnaby and Coquitlam which offer bigger spaces at lower rental rates than Downtown Vancouver became increasingly desirable

2021 Forecast – Once offices invite employees back to the office, universities resume in-person classes and travel restrictions are lifted, this trend will slow. The vibrancy of downtown living will lure renters back to the downtown Vancouver – especially students looking to enjoy the city’s restaurants and nightlife. Moreover, greater condo availability could result in sustained downward pressure on city rental prices further enticing people to live closer to their workplaces and school to avoid a lengthy commute.

Amongst rental market watchers, the belief is that rents will start recovering in spring 2021 when the vaccine becomes more broadly distributed and restrictions are lifted.

2. Short term rentals being converted to long term rentals

Given global travel restrictions, quarantine requirements and the severe slowdown in business travel, landlords and property managers of short term rentals experienced a dramatic downturn in demand compelling them to pivot and re-introduce their properties onto the market as long-term rentals, adding to the supply and downward pressure on rents.

2021 Forecast – As long as travel restrictions and quarantine requirements are still in place, this trend will persist for the foreseeable future. Nonetheless, short term rental options will be re-introduced gradually as things go back to normal. However, landlords that have managed to secure long-term tenants will be compelled to honour those rental arrangements.

3. Rental Incentives

Due to the increase in available rentals, some cities like Toronto and Calgary saw a significant uptick in rental incentives that included cash bonuses, free internet or discounts on longer leases. Vancouver landlords though, were more reluctant to resort to these methods to attract renters and were also slower on the uptake to lower rents despite a significant drop in demand. For example, areas around the Cambie corridor normally saw high demand; instead, landlords have been struggling to secure tenants. Ultimately, some landlords began offering attractive incentives such as move-in bonuses, free parking spots and even new beds and mattresses.

2021 Forecast – Depending on travel restrictions and quarantine requirements in 2021, Vancouver landlords may need to continue to incentivize renters if they hope to fill their units and recoup on some of the losses experienced in 2020.

4. Broader adoption of digital tools and services

Globally, the world experienced a rapid digital transformation due to COVID. Businesses of all kinds pivoted and scrambled to reinforce their digital capabilities as in-person servicing was no longer recommended. The rental industry embraced this shift wholeheartedly and apps like liv.rent gained prominence as they facilitated a contact free, easy rental process for both landlords and tenants.

2021 Forecast – This accelerated adoption of digital tools will continue as people recognize the value of being able to streamline the entire rental process and save valuable time, positively impacting everyday lives.

5. Renter preferences continue to change

As people reprioritize and consider the lifestyle adjustments forced upon them by the pandemic, they have become more open to different housing options. Where once location was important, hence driving the demand for downtown condos; now space has been prioritized by some, thus necessitating a move to the suburbs or upgrade to a bigger rental. This is reflected in the buoyancy of Vancouver’s 2 bedroom rental rates vs. the drop in rates for both furnished and unfurnished 1 bedroom rates throughout the year.

In addition to the demand for more space, renters’ preferences are shifting in other ways. Repeated calls of public health officials for social distancing are making shared common spaces like elevators, lobbies, and laundry rooms less appealing. This is leading to more interest in renting houses, townhomes or units in older three/four-storey walk-up buildings. On the other hand, luxurious amenities that were once appealing are losing their lustre.

2021 Forecast – Most likely, COVID-induced preferences will not immediately change urban plans or impact developers’ project designs in the near term. However, if the situation persists, Vancouver’s development community will need to reconsider how Vancouverites want to live and create housing product that meets their revised requirements.

6. Low mortgage rates will incentivize renters to buy

Despite a very hot housing market that saw average sales prices increase by 11.4% in Vancouver, historically low mortgage rates emboldened many renters to buy versus rent; thereby, further reducing demand for rentals. Additionally, some landlords are choosing to sell their rental properties for the short-term rental market will remain soft in the foreseeable future, and securing long-term tenants is proving more difficult.

2021 Forecast – Low mortgage rates are expected to continue throughout 2021. This suggests continued interest in home-buying despite rising sale prices (4% increase predicted for 2021). A healthy supply of downtown condos may attract first time home buyers, while others may seek more spacious homes in the suburbs. However, considering that many federal and provincial COVID support payments are coming to an end, some buyer insecurity can be anticipated and may dampen home-buying interest. This, in turn, would boost interest in renting once again.

7. Vancouver will be a renter’s market in 2021

Due to the drastic decline of incoming international students and new immigrants, demand on the Vancouver rental market relaxed in 2020. Vacancy rates rose for the first time in a long while and renters had more choices.

2021 Forecast – For the first half of 2021, most Vancouver colleges and universities will continue to follow the remote learning model. Likewise, immigration will continue to be put on hold and tourism will be restricted. As a result, the demand for rentals will continue to be softer than usual, affording renters more choices and negotiating power when securing their leases. However, by spring and early summer, we’ll start to see a reverse as vaccines become widely distributed and restrictions are loosened up.

Rethink The Way You Rent

Not on liv.rent yet? Experience the ease of digital applications & contracts, verified tenants & landlords, virtual tours and more – all on one platform. Sign up for free or download the app.

Subscribe to receive the latest tenant & landlord tips and get notified about changes in the Canadian rental market.

>> Stay up-to-date on the average rent in Vancouver, Toronto and Montreal: Rent Reports.

The post Vancouver Rental Market – 2020 Recap and 2021 Outlook appeared first on liv.rent blog.

With these factors in mind, we take a closer look at the reported average rent prices for the month of January across the Greater Toronto Area. Based on data gathered from numerous listing websites and our own liv.rent platform, our rent reports seek to identify and share key market data and trends, to help inform and educate landlords and tenants alike.

Jump to the following Toronto Rent Report sections:

January 2021 Toronto Rent Trends

Here we take a look at the average rent of a 1 bedroom, unfurnished apartment over a 6-month period from August 2020 to January 2021. The drop in rental rates seems to have slowed though downward pressure persists and is expected to continue into spring.

We encourage you to subscribe to our mailing list for updates on the Toronto rental market and for our continued reporting on the impact of COVID-19 on the rental industry.

Month-to-Month Rent Change

Below, we show the percentage change in average rent from December to January’s figures. The volatility of earlier pandemic months seems to have returned to some neighbourhoods in the GTA. Markham saw prices drop on average by 7.46% in the furnished rental category and 4.56% in the unfurnished rental category. Markham’s larger 2 and 3 bedroom units experienced the biggest drops: -10.05% and -11.47% respectively. Vaughan/Richmond Hill’s furnished rental rates recovered seeing a 7.24% increase.

Toronto Furnished vs. Unfurnished Averages

What is the average rent in Toronto? The average rent in Toronto for an unfurnished one-bedroom apartment is $1,700 down from December’s $1,715. The average rent in Toronto of a furnished apartment declined, too, to $1,717 from December’s $1,742.

Neighbourhood Breakdown

Brampton continues to have the lowest average rent in the GTA for an unfurnished, 1 bedroom unit at $1,450, down from December’s $1,510. Curiously, a furnished rental in Brampton cost less this month at $1,320. While the highest average 1 bedroom rent in the GTA for a similar home in January was, predictably, in Downtown Toronto at $1,903, down again from December’s $1,993.

To assist you further in your rental decision, here is a breakdown of rental averages across other GTA neighbourhoods. Comparing 1, 2, and 3 bedroom rates for both unfurnished and furnished listings across each neighbourhood.

Average Rent in Canada

The slide in average rents in Toronto pushed rents lower but Toronto remains the most expensive city in Canada in a city by city comparison, Toronto’s average rent in January was $1,700 compared to Vancouver’s $1,670.

Vancouver has always been a close second but the decline in rental rates has been less dramatic there resulting in its closer second-place ranking as we kick off the new year. There are many similarities and a few key differences between the two most popular and expensive cities in Canada, discussed in our Cost of Living comparison – link below.

Downloadable Resources

Bring the latest rental averages and trends to your next video conference with our custom virtual backgrounds. 

Looking for the full report? Download it for free here.

Rethink The Way You Rent

Not on liv.rent yet? Experience the ease of digital applications & contracts, verified tenants & landlords, virtual tours and more – all on one platform. Sign up for free or download the app.

Subscribe to receive monthly updates on Canada’s major rental markets. Discover last month’s Rent Reports below:

Vancouver Rent Report
Ontario Rent Report
Montreal Rent Report
Calgary and Edmonton Rent Report

COVID-19 Resources 

For information regarding Coronavirus (COVID-19) and landlords and tenants, refer to our comprehensive resource posts. They include information on the various federal and provincial assistance initiatives available to help support landlords (small business relief) and tenants (rent relief):

• Coronavirus (COVID-19) Canada – Support For Landlords
• Tips for Moving During the COVID-19 Pandemic

The post January 2021 Toronto Rent Report appeared first on liv.rent blog.

As we say good riddance to a historic year and welcome 2021, many Vancouverites continue to work and study from home as COVID-19 vaccines begin to roll out around the world and we look ahead to a brighter future.

To kick off the new year, we take a closer look at the reported average rent prices across the Greater Vancouver Area for December, based on data gathered from numerous listing websites and our own liv.rent platform, we see some upticks in rental rates in certain areas. Our rent reports seek to identify and share key market data and trends, to help inform and educate landlords and tenants alike.

Jump to the following January Vancouver Rent Report sections:

Average Rent across Greater Vancouver

Here we see the average rent of a 1 bedroom, unfurnished apartment over the 6-month, August-January time frame. The average rent for unfurnished, 1 bedroom apartments has stabilized with only a slight dip from December’s rates.

We encourage you to subscribe to our mailing list for updates on the Vancouver rental market and for our continued reporting on the impact of COVID-19 on the rental industry.

Month-to-Month Rent Change

The greatest volatility continues to affect the furnished rental market which is typically shorter-term rentals for travelling professionals, international students, or temporary visitors. This month, the trend continues in some parts of Greater Vancouver with Burnaby seeing a 8.99% dip in furnished rental rates and West Vancouver experiencing a very close 8.64% dip in furnished rental rates following December’s 16.41% spike. Burnaby also saw the greatest increase in unfurnished rentals with a 2.34% improvement while North Vancouver saw the highest spike in furnished rentals at 6.85%.

Income to Rent Ratio

An Income to Rent Ratio determines the percentage of monthly or annual gross income a tenant applies to rent payments. This month we share this quarterly metric with our readers. As evidenced below, renters across the Lower Mainland spent a significant portion – 40% – of their income on rent in the final quarter of 2020 up from 37% in Q3 2020. This is interesting given the downward pressure on rental rates through most of 2020.

Rent per Square Foot

Rent per Square Foot is a key indicator of value for money, however, it does not take into account variables like transit accessibility, distance from downtown and rental amenities. Based on raw figures alone, the average rent per sq. ft across Metro Vancouver was $2.38 with the suburb of Coquitlam offering the best value for rent dollar at $2.01/sq. ft.

Renter Demographics

In January, the vast majority of rental seekers, 45%, fell into the 25-34 yr old category while 29% were in the under 25 category.

Pet-Friendly Rentals

liv.rent continues to host more pet-friendly listings than any other platform with more than a third of listings (37%) willing to welcome household pets vs. 26% on other rental platforms.

Average Unfurnished vs. Furnished Rates 

How much is rent in Vancouver? The average rent in Greater Vancouver for an unfurnished one-bedroom apartment in January was down slightly to $1,670 from December’s $1,687. The average cost of a furnished apartment, however, increased to $1,905 from December’s $1,822.

Neighbourhood Breakdown 

To assist you in making your rental decision, here is a breakdown of rental averages across other Greater Vancouver neighbourhoods, comparing 1, 2, and 3 bedroom rates for both unfurnished and furnished listings across each neighbourhood.

Surrey continues to have the lowest average rent in the Greater Vancouver area for a 1 bedroom, unfurnished unit at $1,336, down from December’s average of $1,357. In comparison, Downtown Vancouver’s rent average of $2,020 was up from December’s $2,010 – a sign of some recovery in the rental market.

Most Expensive Cities in Canada

The cost of living in Vancouver remains high as compared to every other Canadian city, except Toronto and the gap between the two is closing.

Downloadable Resources

Bring the latest rental averages and trends to your next video conference with our custom virtual backgrounds. 

Looking for the full report? Download it for free below.

Rethink The Way You Rent

Not on liv.rent yet? Experience the ease of digital applications & contracts, verified tenants & landlords, virtual tours and more – all on one platform. Sign up for free or download the app.

Subscribe to receive monthly updates on Canada’s major rental markets. Discover last month’s Rent Reports below:

Vancouver Rent Report
Ontario Rent Report
Montreal Rent Report
Calgary and Edmonton Rent Report

COVID-19 Resources 

For information regarding Coronavirus (COVID-19) and landlords and tenants, refer to our comprehensive resource posts. They include information on the various federal and provincial assistance initiatives available to help support landlords (small business relief) and tenants (rent relief):

• BC Restart Plan: Guidelines for the Renting/Real Estate Industry
• Coronavirus (COVID-19) Canada – Support For Landlords
• Tips for Moving During the COVID-19 Pandemic

The post January 2021 Vancouver Rent Report appeared first on liv.rent blog.

liv.rent has partnered with two of the West Coast’s premier resort properties, Vancouver’s Westin Bayshore and Whistler’s Sundial Boutique Hotel, to offer you an exclusive selection of well-deserved mini-getaway hotel packages at special prices.

Westin Bayshore, Vancouver

1) Dine & Stay during Dine Out Vancouver

Unwind seaside at the Westin’s H Tasting Lounge and enjoy the master crafted cocktails and innovative tasting plates featuring some of the freshest, sustainable seafood in Vancouver. Book an overnight stay and receive complimentary self-parking and a three course dinner for two at the H Tasting Lounge as part of the Westin’s Dine & Stay during Dine Out Vancouver (February 5- March 7, 2021).

Book the Dine & Stay offer here
Valid for stays February 5 – March 7, 2021

2) Dine Out Staycation & Save

Though it will invariably look different this year, what better way to enjoy take-out from any of the Dine Out Vancouver’s participating restaurants, than in a luxury Westin hotel room overlooking Coal Harbour, Stanley Park and the North Shore mountains! Save up to 20% on your overnight stay during this much anticipated event.

Book the Dine Out Staycation offer here
Valid for stays February 5 – March 7, 2021
*Meal & parking not included in this rooms-only special*

3) Eat, Stay & Park

If you’d rather wait for warmer months, Westin’s Eat, Stay & Park offer includes a $50 daily dining credit and complimentary self-parking and is valid for stays throughout the year. Simply roll up, dine and unwind at Vancouver’s iconic waterfront resort property. Whether you are in the mood for breakfast, afternoon tea, happy hour cocktails or a locally-sourced, expertly prepared dining experience, the Westin Bayshore has you covered.

Book the Eat, Stay & Park offer here
Valid for stays all year long

Sundial Boutique Hotel, Whistler

The holiday crowds have thinned, and the weather gods continue to shine on North America’s premier mountain destination, Whistler Blackcomb. More than five metres of snow have fallen this season with almost two meters the first week of 2021 alone.

Whether you want to enjoy a day on the slopes, relax at the spa, tour the exquisite Audain Art Museum or simply take in the clean, alpine air walking about this beautiful winter wonderland, now is the time to plan your Whistler getaway.

Stay at the luxurious Sundial Boutique Hotel in the heart of the Whistler Village and save 10% on all bookings now.

As reviewed on Trip Advisor:
…
We spent New Year’s at the Sundial Hotel. We had a one bedroom room with a hot tub on the balcony. It was well worth the extra money to have a large deck with the hot tub that over looks the village and ski hill. Great service by Chris in valet! Always friendly and assisting us with whatever we need. Thank you! Great vacation at Sundial…we’ll be back!
…

“You cannot go wrong staying at the Sundial. The location is just 100 feet or so from the Blackcomb gondola and tons of restaurants all within walking distance.”

Redeem this exclusive offer online or via phone call.

For online redemption:
Visit Sundial Reservations and use promo code: 10% more

For call redemption:
Call 1.800.661.2321

Valid for stays all winter long!

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>> Stay up-to-date on the average rent in Vancouver, Toronto and Montreal: Rent Reports.

The post New Year, New Outlook – Exclusive Hotel Offers for B.C. appeared first on liv.rent blog.

In this article, we identify the Top 10 Property Management Trends for 2022, and give our insights into what’s changed since 2021.

The Future of Property Management in 2022 – Top 10 Trends

1. Growth of property technology (PropTech)

We mentioned this trend last year as well, but we’re seeing more and more that the most successful management companies are increasingly relying on PropTech to automate their accounting, communications, portfolio management, and so much more. As broader adoption of technology takes hold in the property management and real estate industries, renters and owners alike are increasingly demanding modern technology.

Software and apps that enhance rental portfolio management will free up property managers to either expand their rental portfolios or expand their services to include, for example, maintenance services and furniture sourcing. Essentially, property managers will provide a suite of services enabling landlords and tenants to utilize the space more easily, much like what commercial landlords do for their tenants.

In addition to tech that simplifies leases, all other technologies that support remote environments like mobile data access and bulk email/text messaging will continue to gain traction in the property management community with responsive service being the key focus.

2. More efficient methods of communication

Property managers were inundated in 2020 with communications across all channels, be it email, telephone, SMS text. On one hand, nervous and panicking tenants looked to end leases early to return home, or to re-negotiate lease terms or rental rates. On the other hand, owners sought to convert from short term to long term rentals, to offer incentives to retain tenants, or to prepare a listing for sale.

As “necessity is the mother of invention”, communications will be streamlined in 2021. Rental management professionals will seek to adopt technology designed to capture communications between landlords and tenants all in one place; enabling better traceability and management.

Property managers can now effectively manage all their communications from the liv.rent dashboard. From here, you have access to your ‘digital filing cabinet’ – store, organize, and manage all your rental property documents like tenancy agreements, applications, references etc. You can also access entire chat histories of in-app conversations you’ve conducted with prospective or current tenants. This way, you will have a comprehensive documentation trail of all important conversations that may have taken place regarding rent payment, contract renewals or maintenance matters.

3. Prioritizing services over amenities

This past year, we’ve seen renters’ priorities change significantly as to what they look for in a rental property. Swimming pools and decked-out fitness facilities are no longer dealbreakers for the majority of tenants – instead, they increasingly seek out comfort and convenience in their everyday lives. Things like faster maintenance and upkeep, clearer lines of communication with property managers or landlords, and general care shown for the renters’ living experience. Property managers need to respond to these new concerns by making it clear to renters that they’re available and have access to all the necessary services.

4. A streamlined rental process

As many property managers and landlords faced a period of non-tenancy in 2021, they were reminded of the value of good, stable tenants. We predict that 2022 will see further emphasis on improving the rental experience for tenants; making it as seamless as possible through the continued use of virtual touring, digital applications, and secure online payments. Today’s renters expect convenience and efficiency, not to mention security, throughout the application and through to the lease being signed.

5. Increased use of rental incentives

As vacancies decrease once more in major cities across the country, property managers and landlords alike need to be ready to work a bit harder to secure quality tenants. Particularly in more crowded housing markets, rental incentives are an excellent way to entice renters. Consider offering things like gift cards for nearby restaurants, free parking, or even discounted or free rent. The rental market is returning to some semblance of normalcy, and if property managers want to find tenants quickly they should be ready to go above and beyond.

6. Maximizing clients’ investments

Property managers will increasingly be recognized for their value in assessing key information and understanding market trends. Property managers will need to be ready to help educate landlords on how best to maximize their investments based on rental yields, capital growth or short-term rental revenue. This will require a little homework and close collaboration with sales teams to ensure that clients’ are getting more out of their property investments.

7. Increased flexibility with rental terms

Short-term rentals have been gaining popularity as borders reopen and travel brings new temporary residents to Canada. If your clients are having trouble renting on a long-term basis, It may be worth reconsidering the lease terms and opening up additional options like short-term rentals.

8. Prioritizing tenant retention

Residential tenancy retention will be prioritized. In 2021 far more landlords and property managers experienced the financial pain of empty properties; demand all but evaporated as travel stopped and students returned home. Every month more units became empty, and revenue took a serious hit. Thankfully, this unfortunate trend looks to come to an end in 2022, but the past two years have shown that the property management industry needs to be prepared for anything.

To ensure higher tenancy retention, more emphasis is placed on tenant screening. For instance, property managers have switched to tools like liv.rent to assess a tenant’s suitability and financial viability. Through the platform’s unique Trust Score feature, property managers have access to the tenant’s digital application, which is verified against social media profiles and financial information; this more informed process makes it easier to find tenants. Property managers are also taking the necessary steps to enhance the resident experience throughout a tenancy in order to retain these good tenants. (See: Trend #2 – Emphasis on resident experience).

9.Longer leases

In expensive cities like Vancouver and Toronto, homeownership may never happen for a significant portion of the population. This generation of permanent renters is comprised of many professional, responsible tenants who are seeking greater housing security and are looking for lease terms that extend beyond the typical 12 months. As discussed above in #7, finding and retaining good tenants is financially and administratively beneficial to an owner, so more will be open to longer lease terms.

9. Professionalization of property management

Traditional property management proved to be a dead-end career bogged down by administrative and accounting processes plus a lack of investment by real estate companies. With the advent of myriad property management technologies to streamline day-to-day functions, more time will be freed up for property managers to seek additional qualifications like a property investment advisor, interior designer etc; hence, allowing them to grow their property-as-a-service business. Moreover, property managers from other industries (e.g. data analysis, marketing, and management) will be drawn to the field. As their expertise and function within an agency grows, better career growth will ensure less turnover and better compensation.

10. Virtual tours and 3D videos

The quick adoption and reception of virtual showings during the pandemic shows that this trend is here to stay. Video tours have proved to be a great asset for property management companies as they shifted to accommodate COVID-19 protocols that demanded social distancing and minimal contact. Ultimately, video touring proved beneficial to everyone. Property managers reduced showings; consequently, saving time and minimizing disruptions to existing tenants. Likewise, tenants saved time by being better able to determine whether or not a property suited their needs before requesting an in-person viewing.

Future enhancements will continue to improve user experience, providing landlords with a rich and powerful tool to employ when seeking to attract good tenants.

What will 2022 look like for property managers?

As rental rates continue their climb in major cities across the country, property managers have a lot to look forward to in 2022. The post-pandemic rental push has seen tenants return in droves, and landlords will likely turn to property managers to help them keep up. The rental scene in Canada may look a little unfamiliar though, as the industry has been forced to constantly stay on its toes and adopt new technologies and methods. To sum up our advice for property managers: be ready to adapt, and

Rethink The Way You Rent

Not on liv.rent yet? Experience the ease of digital applications & contracts, verified tenants & landlords, virtual tours and more – all on one platform. Sign up for free or download the app.

Subscribe to receive the latest tenant & landlord tips and get notified about changes in the Canadian rental market.

>> Stay up-to-date on the average rent in Vancouver, Toronto and Montreal: Rent Reports.

Cover Photo Image Source: Unsplash

The post Top 10 Property Management Trends For 2022 appeared first on liv.rent blog.

1. Identify your requirements

Make a list of what is important to you before you look for an apartment to rent in Toronto – amenities, neighbourhood, walkability, transit etc. This will help refine your search.

With your identified requirements, start your search on liv.rent for apartments for rent in the Greater Toronto Area. Filter your searches by various parameters – housing type, bedrooms, pricing, pet policy and furnished or unfurnished rentals.

2. Research & explore the neighbourhood

If you’re looking at renting an apartment in Toronto, it’s important to first find out the average rent for comparable properties in the area of Toronto that you’re targeting. This will give you a good idea of what you should be paying. It also arms you with the necessary information to negotiate terms and rates if necessary. In addition, scope out the neighbourhood on foot; given that you’ll be renting for at least 12 months, this will give you a better idea of the area, services and amenities.

Subscribe to liv.rent’s monthly rent reports to gain a comprehensive understanding of average rental rates across the Greater Toronto Area.

3. Research the landlord

One of our top tips for renting an apartment in Toronto is to avoid scam listings and disreputable landlords by researching your landlord beforehand. Utilize social media tools such as Facebook and LinkedIn. You can also narrow your searches to verified landlords and/or properties on the liv.rent rental platform. This means their business licenses and land title documents have been verified against city registries; thus, lending reassurance that you are dealing with a legitimate entity.

4. Diversify your search

Although we certainly advise using liv.rent to find verified listings in Toronto, you may need to look elsewhere in order to find a place on a tight deadline. You can use other platforms like 4rent, Walk Score and Kijiji to broaden your search. Just be sure to be cautious of rental scams if you’re using a platform that doesn’t verify listings and landlords.

5. Have all the necessary information to apply

In order to act quickly on a property, make sure you have evidence of employment and income. Valid proof includes bank statements, pay stubs, tax statements, and letters of employment. Other alternatives include job offer letters or student loan financial statements. It is also important to have references (ideally, previous landlords).

On liv.rent, once you’ve completed your renter profile, this will serve as the only application you need to apply for multiple properties. Make sure your profile is fully completed with financial documents and references. This is an indicator of your reliability and trustworthiness as a tenant; thus, landlords will more likely favour your application over others.

6. Be strategic about in-person viewings

If possible, view video tours first. Since in-person viewings are limited due to COVID-19, narrow down your selection and book viewings for only places you’re seriously considering. Once there, be prepared with questions and make sure everything is in working order before committing – run faucets, check thermostats, flush toilets, turn on stoves, etc. And, when you do commit to an in-person showing, be sure you’re ready to act – have all the information and payment ready (see #5 – Have all necessary information).

7. Adjust search parameters

As important as it is to decide on a neighbourhood for your search, it is equally as important to be flexible. Consider properties outside your ‘sweet spot’ – a little to the north, south, east or west. Your selection will expand and you may find a better rental or get more for your money while still enjoying the attractions of your preferred neighbourhood.   

8. Consider older rental buildings

As appealing as new condos might be with modern amenities, appliances and fixtures, old buildings are often renovated, more spacious and more cost-effective. Do not rule them out!

9. Be prepared to negotiate

This is a once in a lifetime opportunity – renter’s market in Toronto. You now have a bit more leverage when determining the rental rate. Try asking for a reduction, a fixed price for utilities, a rent freeze or even permission to have a pet! The ball is in the renter’s court – for now.

10. Familiarize yourself with standardized lease terms

Do your research and know your rights by reviewing the Landlord and Tenant Board (LTB) rules. This way you’ll avoid agreeing to questionable or illegal lease terms. We also break down some of the crucial rental-related laws and practices on our blog for those looking to get familiar with Ontario’s rules & regulations.

FAQ: How to rent in Toronto

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Subscribe to receive the latest tenant & landlord tips and get notified about changes in the Canadian rental market.

>> Stay up-to-date on the average rent in Vancouver, Toronto and Montreal: Rent Reports.

The post Top 10 Tips for Renting an Apartment in Toronto appeared first on liv.rent blog.

Video Transcript

This article is a partial transcription from our live liv.talk webinar 2020 Toronto Rental Market Recap + 2021 Predictions. Download the full report now and watch the video to learn about how the Toronto rental market was affected by the pandemic and where it’s headed in 2021.

Through it all, liv.rent has been collecting and analyzing rental market data to now be able to provide a comprehensive recap of our findings and present our predictions for 2021.

Table of Contents

Top 5 Toronto Rental Market 2020 Insights

Below we discuss what we’ve learned through our monthly data analysis of the Toronto rental market.

If you’d like to stay up-to-date on the market, be sure to subscribe to our newsletter for monthly reports on the Toronto rental market.

1. Toronto saw the biggest % drop in rental prices compared to other Canadian cities

Compared to the other major Canadian cities, Toronto experienced the biggest percentage drop in rental prices in 2020. For a 1 bedroom unfurnished rental, prices dropped by 3.3% in Toronto, 1.4% in Vancouver and 1% in Montreal. In contrast, the nation’s capital, Ottawa, saw an opposite trend with a 1.2% increase in average rent.

Toronto experienced an even bigger drop in rates for furnished rentals – a 13.1% decrease compared to a 4.6% drop in Montreal, 2.4% in Vancouver and, once again, a 14.8% increase in Ottawa’s furnished rental market.

This steady decline in rental prices began in March, which was when COVID-19 hit. There was a slight but fleeting increase in furnished rental rates during the summer months of July and August likely due to summer travel or study. However, the downward pressure on unfurnished rentals persisted throughout the summer into fall and winter, with December seeing the biggest decline.

2. Rental decreases were not limited to the downtown core

Downward pressure on rental rates was not isolated to downtown Toronto. The entire Greater Toronto Area witnessed drops as compared to 2019 rates. Taken together, the dip was more significant. An 8.6% drop in rental rates for a 1 bedroom unfurnished rental and 15.8% for furnished. Overall, the average monthly rent for a 1 bedroom across the region was $1,826, down over $100 from the 2019 average of $1,997.

For furnished apartments, the biggest drops were seen in Brampton (-33%), Scarborough (-30%), Markham (-27%) and Downtown Toronto (-23%) 

For unfurnished apartments, the biggest drops also occurred in Brampton (-20%), Markham (-19%), Scarborough (-18%) as well as Vaughan/Richmond Hill (-16%). 

Despite this downward trend, Downtown Toronto continues to have the highest average monthly rent at $2904 for a furnished, one-bedroom and $2714 for an unfurnished unit in the GTA.  

3. Downtown Toronto sees a steady decline

Like the numbers for the entire GTA, the rental rates for the downtown core have seen a significant and steady decline since the beginning of the pandemic in March.

In our 2020 Toronto Rental Market Recap webinar, Elena Sardidis, Real Estate Sales Rep, Brad J. Lamb Realty, explains this downward pressure:

“COVID-19 sparked a return to home for business travellers and students, all able to work from home now and many buildings imposed an outright ban on Airbnb short term rentals. Their owners flipped these properties onto the long term rental market; thus increasing supply. Also, a bunch of developers saw their projects completed just as the pandemic hit – unfortunate timing that saw even more units being added to the rental market.”

4. GTA suburbs were most impacted

Overall, Scarborough, Brampton and Markham saw the largest percentage drops in rental prices taking into account both furnished and unfurnished properties.

Elena Saradidis, Brad J. Lamb Realty: “Before, many moved based on price. It was a little bit cheaper to get into these areas; they could save on rent, parking was available and they didn’t mind the commute. What happens then when the downtown core sees price drops which are now the same prices as the suburbs? Why wouldn’t they want to move closer to the core in anticipation that when things open up again, ‘I have a place in downtown Toronto, covered under rent control and closer to work’. Also, many people in Brampton, Vaughan and Richmond Hill have converted into buyers in this market.

5. Mississauga and Vaughan/Richmond experienced rent rebounds in December

Two suburbs saw slight rent rebounds towards the end of 2020 – Mississauga and Vaughan/Richmond Hill while downtown Toronto continues to experience downward pressure on rental rates.

6. Multi-bedroom apartments in Toronto saw largest drop in rental prices

Larger rental properties with 3 or more bedrooms experienced the biggest drop in rental prices in the GTA. Furnished 3 bedroom rentals saw the most dramatic decrease. Rental prices in Scarborough dropped by 40%, Brampton 38%, Markham 34% and Downtown 31%. Regardless of unit size, Brampton’s rental market was hit the hardest in 2020.

This data point is interesting; with people looking for larger rentals, the assumption is that multi-bedroom apartments would sustain their 2019 rates. However, a number of pandemic influences impacted the reduced demand for these bigger units.

Firstly, roommate arrangements became less desirable as the pandemic forced all roommates home at the same time. Secondly, many students in such arrangements returned home. In both cases, leases were abandoned on many multi-bedroom rental properties and some of these tenants then opted to rent a smaller studio and one-bedroom units which became more affordable. In addition, many families planning to come to Canada put immigration plans on hold, further reducing demand for this type of rental property.

Top 8 Rental Market Trends & 2021 Forecasts

In Canada’s biggest city, Toronto, the size of the rental market has enabled us to tease out some key trends spurred on by 2020’s pandemic and allow us to make some informed predictions for 2021:   

1. Renters continue to live away from city centres in 2021

As people sought extra elbow room, they were quick to realize it was more cost-effective to move further away from the city centre where the cost per square footage was lower. With the commute no longer an issue, many realized their dream of renting a bigger home was within reach if they moved to the suburbs.

2021 Forecast – Once offices invite employees back to the office, universities resume in-person classes and travel restrictions are lifted, we see this trend slowing. The vibrancy of the downtown core will attract renters to return.

Moreover, greater condo availability and lower rent prices will likely entice some people, once again, to live closer to their workplaces, avoiding a commute. Many workplaces are going to great lengths to redesign their office spaces in a COVID-friendly way, eliminating lounges and other congregating areas, in order to assure safety and to encourage workers to slowly return.

Elena Saradidis, Brad J. Lamb Realty, “It will depend on how fast they can circulate vaccines. So do I think people will continue to live away from city centre? Temporarily, yes. Long term, no. I see people coming back. People like having things to do. But the rental market will take time to recover to pre-pandemic levels especially with the influx of inventory.”

2. More short term rentals being converted to long term rentals

Given global travel restrictions, quarantine requirements and the severe slowdown in business travel, landlords and property managers of short term rentals experienced a dramatic downturn in demand. In response, many were forced to place their properties on the long term rental market, adding to the supply.

2021 Forecast – As long as travel restrictions and quarantine requirements are still in place, this trend will persist for the foreseeable future. Once a vaccine is widely distributed and travel restrictions are lifted, short term rental options will be re-introduced gradually – though, some downtown buildings have now banned them. However, landlords that have managed to secure long-term tenants will be compelled to honour those rental arrangements.

Moreover, given that short term rentals are typically furnished, it follows that furnished rentals will continue to experience less demand.

As Elena Saradidis, Brad J. Lamb Realty explains…as a landlord, “You’ve got to be flexible. If you have a furnished rental, it has to be very nicely furnished in order for you to potentially earn more in rent. However, right now, most people don’t want furnished places so you should provide the option to rent it unfurnished.”

3. See a boost in incentives for renters

Due to the increase in available rentals, Toronto property managers and landlords have resorted to offering some remarkable incentives to attract and retain renters. In addition to steadily declining average monthly rents, some are offering a few months of free rent, free internet, steep discounts on longer-term leases or even cash bonuses.

2021 Forecast – As per our prediction, that downward pressure on rental rates will persist throughout 2021. So long as rental supply outweighs demand, the active courting of renters will continue. Incentives may become more generous and creative and will be designed to secure longer-term leases.

In addition, more tenants will seek the help of realtors to help find their next rental. Many landlords will list their rentals on MLS and pay real estate agents a commission for finding tenants.

For landlords, Elena Saradidis reiterates, “A good tenant goes a long way. If you have someone that is good, and they are offering less rent, take it. Ask yourself, ‘How much would you pay to get rid of a bad tenant vs. how much to have a great tenant?’ When you have a good tenant, you should be more willing to negotiate on price because, long term, it will cost you less in tenant turnover.”

4. Broad adoption of technology to streamline the rental process

A significant development, directly related to the pandemic but with staying power, is the broad adoption of digital tools by the rental community – landlords and renters alike. Platforms like liv.rent have gained significant traction. Through a contact-free process, renters can search, view and sign contracts digitally to secure their rental. Rent payments are also done online. Likewise, landlords have started relying on platforms like liv.rent to screen renters, facilitate video tours of rental properties, as well as manage applications and contracts online.

2021 Forecast – Digital transformation of the rental process will accelerate in 2021. For the rental real estate market, the ability to offer video tours, digital contracts and payment functionality, is no longer a luxury but a necessity.

5. Toronto will remain a renters’ market in 2021

This year has been described as a ‘once in a lifetime’ rental market in Toronto. This is due in large part to the reduction in new immigrants and from the drop in domestic and international student demand. Given the remote learning circumstances dictated by Canadian colleges and universities, many students opted to stay home. This has left many properties without tenants, dramatically increasing the rental supply, and placing downward pressure on rental rates.

For landlords, Elena Saradidis recommends “If you have a bunch of rentals now, it is not the time to hold out for the highest price. Drop it to a reasonable price that’s going to get you a tenant now.”

2021 Forecast – Toronto will remain a renters’ market well into 2021 as rental vacancy rates continue to climb upwards. This is especially true for studios and 1-bedroom condos which account for 61% of new units. Developers have been slow to respond to demands for larger units, citing construction and development costs. As a result, condos in the city of Toronto have been the only property type to lose value in a booming COVID real estate market. (Source: Globe and Mail).

6. Renters continue to seek bigger spaces

As many were driven away from their offices to work at home in 2020, previously adequate spaces, began to feel small especially for those in shared living arrangements with family or roommates. It was one thing when we were cohabiting with busy people on different schedules, but quite another when everyone was home, ALL THE TIME. As a result, many renters (and buyers) moved to more spacious properties.

Elena Saradidis, Brad J. Lamb Realty:
“Two bedrooms listings are getting more action than anything smaller. The mentality is, ‘If I am working from home for the foreseeable future, why wouldn’t I work from a home that can accommodate it’. Couples are moving to one bedroom and den or two bedrooms and designating a space as their office. For landlords, you’re getting more security because instead of relying on one person’s income, you are relying on two.“

2021 Forecast – Until workplaces welcome employees back to the office and universities resume in-person classes, this trend will not abate. People will want a designated home office and in general more space to accommodate school, career and leisure pursuits at home. Nonetheless, demand for rentals in downtown Toronto will pick up again once a vaccine has been distributed.

7. Shift in renters’ preferences

In addition to the demand for more space, we will see a shift in renters’ preferences. As we grow accustomed to the repeated calls of public health officials for social distancing, shared common spaces like elevators, lobbies, and laundry rooms become less appealing. In Toronto, this has meant diminished demand for units in condo buildings; thus, resulting in serious price drops for this inventory type, paired with increasing prices for rentals in low rise products like single houses, townhomes or three/four-storey walk-up buildings.

2021 Forecast – In all likelihood, these COVID-induced preferences will not impact developers’ plans in the short term (2021) but if they persist, then a broader rethink on how we live will impact how developers design and build.

8. Stronger incentive to buy instead of rent

Thanks to historically low mortgage rates, many renters are emboldened by their new buying power and incentivized to buy versus rent; thereby, further reducing demand for rentals. Additionally, some landlords are choosing to sell their rental properties as the short-term rental market has all but disappeared and filling them with long-term tenants has become increasingly difficult due to the influx of inventory.

2021 Forecast – Low mortgage rates are expected to continue throughout 2021 suggesting continued interest in home-buying. Nonetheless, as many federal and provincial COVID support payments come to an end, buyer insecurity may lead to dampened home-buying interest, which, in turn, would boost interest in renting.

To close, we cite Elena Saradidis, one more time:
“The moment the vaccine starts to circulate, the moment businesses start to reopen, the moment immigration picks up again, the city will recover.”

Rethink The Way You Rent

Not on liv.rent yet? Experience the ease of digital applications & contracts, verified tenants & landlords, virtual tours and more – all on one platform. Sign up for free or download the app.

Subscribe to receive monthly updates on Canada’s major rental markets. Discover last month’s Rent Reports below:

Vancouver Rent Report
Ontario Rent Report
Montreal Rent Report
Calgary and Edmonton Rent Report

The post Toronto Rental Market – 2020 Recap and 2021 Outlook appeared first on liv.rent blog.