COVID-19 Brings Issues for Renters AND Homebuyers

Dated: April 29 2021

Views: 74

Toronto's surging real estate market is affecting renters as well as buyers. Landlords are looking to cash in on the rising costs and sell their properties. These quick sales are leaving some renters - especially long-term renters - with very few options. 

 

Geordie Dent, the executive director of The Federation of Metro Tenants’ Associations, states, "It's a landlords market right now. A lot of landlords are trying to push people out like this." Dent also reiterates that landlords cannot just ask someone to move out on short notice but that there is a legal process. Evictions are currently on hold in Ontario due to the pandemic, but it's possible for a landlord to evict a renter if the building or unit has already been sold and the person(s) buying it want to move in. 

 

Renters face issues with finding new places on short notice, and every listing that is currently available is typically available at a much higher rent price. Renters seeking new places to live also face bidding wars and multiple people applying for one single listing. Not to mention some landlords are requesting a full year of rent in advance. 

 

For 2021, rent increases have been put on hold in Toronto unless a landlord has made capital improvements. The majority of Ontario renters should see zero rent increases this year. Many reports estimate that the monthly rent of a one-bedroom apartment has dropped about 23% each year, bringing some prices down to almost $1,500 in some of the best locations in the city. 

The long-term effects of this Toronto rental and real estate market are yet to be determined. Still, Benjamin Tal, the deputy chief economist at CIBC, said, “If you think Toronto is unaffordable now, you wait.” While that may not be the ideal situation for any homebuyer or renter, residents are currently facing it. If tenants are presently looking to buy or find a new rental, it's never the wrong time to gather all required documentation (such as references, proof of employment, deposits, and credit checks) and being ready to make a fast decision as properties of all kinds move quickly. Do your research, be flexible, and be prepared for the next step. 

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