20 Nov 2013
Massive spike in bachelor apartment rentals in Toronto.
One and Two bedroom apartments also in huge demand but we’ve got a bit more supply than last year.
We’ve got an intense rental market here in Toronto. Quality condo units are hitting the market daily and the uber hot ones are being snapped up within days, sometimes hours of listing. The one bright light? Third Quarter 2013 stats show that Toronto Renters have 21.2% more listings to choose from.Bachelor apartments also known as studios, lead the pack with a 36.1% jump in number of available listings. We can credit this to the increased popularity of the “micro-condo”. A micro-condo is a space 275-400’ish square feet. We’re going to see this trend continue as more and more new developments just coming on line now are advertising these investor friendly spaces…and investors are buying.
The Numbers
Bachelor/Studio Apartments – $1,365/mth average up 2.2% from Q3 2012 – Likely the higher ROI per square foot. These suites are usually priced low to mid $200’s. You do the math. With only 162 units listed in all of the 416, young tenants are getting really competitive with this sector. Be prepared for a fight if you want one of these.
One Bedroom Apartments – $1,633/mth average up 1.8% from Q3 2012 – The previous category is stealing some potential tenants away from the one bedroom market. With almost a thousand more one beds listed this year when compared to last, tenants have lots more to choose from.
Two Bedroom Apartments – $2,173/mth average up 3.6% from Q3 2012 – This has always been a strong category, especially when close to universities and colleges. These ideal units for roommates can have the advantage of the bank of mom and dad covering the monthly rents. Very competitive so make sure you ducks are in a row when out looking.
Three Bedroom Apartments – $2,610/mth on average actually down 1.8% from Q3 2012 – There aren’t too many 3 bedroom apartments out there. Many that require the 3rd bedroom consider the 2 plus dens so they’d be lumped in with the previous category. Why pay an extra $500/mth when you can easily use a den as a bedroom. But because some people prefer the 3 bed options, especially families. Considering less than 2% of all rental inventory are 3 bedrooms, this can also get competitive at times.
In the Rental market? Here are 3 things you can do to make sure you’re prepared:
- Go to www.equifax.ca and download your credit report including your credit score
- Complete this Rental Application and have it ready. You can use it for any MLS listed property
- Speak to your employer and have them prepare an Employment Letter confirming your employment, income etc. If you’re self employed, get together your last three Notice of Assessments (NOA’s) from the CRA
That’s it! Give us a call, we’d love to help you find your next rental. Already a landlord? We can help you find a tenant too.
Written by: Ara Mamourian – Broker of Record – Spring Realty Inc.
