5 tips for finding an apartment to rent in a competitive market
Rising interest rates kept many potential buyers in the rental market, which boosted demand in Canada’s major markets.
Simultaneously, students and remote workers are returning to cities and snapping up rentals as they arrive. In tight market conditions, prices surged in places like Toronto and Vancouver.
According to the latest rental market report from the Toronto Regional Real Estate Board, the average rent for one and two bedroom condos in the GTA reached record highs in the second quarter of 2022.
The average bedroom now costs $2,269 per month – a year-on-year increase of 20.2% – while a bedroom costs $2,979 per month, a 15.3% increase from the previous year . Both figures exceed the previous peak observed in the third quarter of 2019.
At the same time, there is an annual decline of 11.4% in the number of transactions. As Royal LePage notes, the decline is not due to a drop in demand, but can instead be attributed to a “significant” drop in the number of listings – they have fallen by almost 30% year on year. the other in Q2 2022.
A similar story is playing out in Vancouver. According to a recent report from Rentals.ca, rent for a one-bedroom apartment in the city hit $2,412 per month in June, a 19.17% year-over-year increase, while the cost of a two-bedroom apartment has increased by 26.48% per year, reaching $3,597. per month.
With rental rates set to increase further in the coming months, this will lead to even fiercer competition. Royal LePage has compiled a list of tips to help potential tenants navigate the market.
From good first impressions to good credit, here are five tips from Royal LePage that will help you find a rental in today’s competitive market.
1. Make a great first impression.
When meeting with an owner or their agent, Royal LePage recommends being on time, being polite and respectful, and appearing presentable.
“For a landlord, the most important factors when choosing a tenant are finding someone who will take good care of their property and pay their rent on time,” said Kevin Axford, Realtor and Property Manager, Royal LePage Sterling in Metro Vancouver.
2. Personalize your application
Including a written letter, photo or video can help your application stand out from others, especially if multiple offers are involved, advises Royal LePage.
“Treat your rental application like a job application,” said Amrit Walia, Sales Representative, Royal LePage Signature Realty in Toronto.
“In this competitive environment where there could be a dozen other candidates vying for the same property, it’s important to put your best foot forward right away.”
3. Find a guarantor
According to Royal LePage, listing agents and landlords generally want someone whose annual income is 40 times the cost of monthly rent.
If you’re a student or don’t have a full-time job, having a guarantor co-sign your application can increase your chances of securing a rental.
4. Complete your kidney application completely and honestly
Have all the necessary supporting documents – such as a letter of employment with salary, a recommendation from a previous landlord, and a credit report – organized and ready to send to the landlord or listing agent.
“In today’s market, a tenant’s best chance of securing a property is to act quickly,” Axford said. “It is imperative to actively search daily and respond quickly to attractive ads. Properties are recovered within days.
5. Prepare your credit score
Having good credit is obviously important to securing a rental, but so is knowing your credit score before applying for a property. Royal LePage says most listing agents and landlords ask for a full credit report. They also tend to prefer a report from a reputable agency, like Equifax or Borrowell, rather than a bank.
“Show that you are professional and responsible, be decisive and willing to act quickly, and make sure you are well armed with all necessary documentation before starting the application process,” Walia said.
“With fewer listings to choose from, it is becoming increasingly difficult for renters to close deals.”