Are Utilities Included in Condo Rent?
Tuesday Apr 12th, 2022
Are Utilities Included in Condo Rent?
Toronto is one of Canada's most "looked forward to" cities. Its diversity, exciting events, nightlife, and endless opportunities have made the city home to millions. However, with the increase in population, you will also find several maintenance costs on top of the basic price.
We all hate paying the bills each month. The inflationary costs add up over time, and with additional fees such as electricity and water bills, it's essential to budget carefully throughout the month. When purchasing a new condo in Toronto, it is important to understand if these fees are included in the monthly rent. However, when asking the question, "are utilities included in condo rent?" the most common answer is, it solely depends upon the owner.
Our team of professional real estate brokers in Toronto has created a list of deciding factors to help you choose whether to purchase a condo with or without utilities included is best for you.
Purchasing a Condo with Utilities Included
Usually, the owner renting out the unit decides whether to include utilities under the rent subheading. You will not find any city-wide formula following this practice, as different condos come with varying combinations of utilities included in condo rent.
Including utilities in the rent makes the accommodation look more attractive for renters as it reduces their stress and the burden of paying bills each month. When shopping for a condo in Toronto, you should consider an apartment with utilities included in condo rent as the preferred model for renting, especially if you are renting to students, first-time renters or bachelors.
Advantages of Including Utilities in Condo Rent
Splitting the bills in shared homes like student accommodations becomes very complicated for people, and they generally do not prefer it. Moreover, including utilities in the rent provides the perfect pretext for increasing rents as the landlord must account for the increased costs and inflation. In general, landlords that include utilities in rent effectively earn more than those that do not.
Disadvantages of Including Utilities in Condo Rent
On the other hand, including utilities in the condo's rent may also become a source of perennial problems for the landlords.
By including utilities in the monthly rent, you risk residents over-using utilities like electricity by keeping appliances running too long, which may adversely impact your profits in the long run. In contrast, properties that do not include utilities in the rent tend to house more responsible residents as they are liable to pay for the utilities used each month.
You effectively transfer the responsibilities of paying bills and dealing with utility companies from the renter to yourself by offering to include utilities in the rent.
Condos Without Utilities Included
Choosing not to include utilities in the rent will likely attract well-settled, middle-class families who prefer to pay their own bills to save on costs.
Properties without utilities look cheaper on listings, making them stand out from others.
Advantages of Condos Without Utilities Included
Not being responsible for utilities makes your job as a landlord easier. Your tenants will be responsible for setting up respective accounts, organizing payments and paying fees in the event of a surge, such as paying for heating during a frosty winter storm or air conditioning during the hot summer months. When utilities are not included in condo rentals, your tenants are responsible for paying for how much they use every month, saving you money over time.
An added benefit to condos without utilities included is that, as a landlord, you will not have to continuously increase the rent. Rent increases can make renters less inclined to continue residing at the property, and the conversation regarding rent increases is not easy for either renter or landlord. Additionally, you may face legal issues with the Ontario Government on increasing the rent beyond a certain limit.
Available Utilities Included in Condo Rent in Toronto
Utilities included in the rent also depend upon the Toronto neighbourhood you choose to reside. As a landlord, it is good practice to match your offerings with others in the area. For instance, if your condo is older or there happens to be some other downside to it, you may even have to go the extra mile.
Generally speaking, gas and water are the most common and convenient utilities in condo rent. There is an unavoidable aspect of predictability to these offerings, and you can be almost sure about the bills you will need to pay every month.
Paying the water bill may provide crucial insights into any leakages within the condo unit, as an excess may indicate repairs required to the plumbing. In this way, you can also correctly maintain and upkeep your precious property.
Ultimately, including utilities in the rent of a condo unit in Toronto remains the choice of landlords. There are definite advantages and disadvantages to both options, but it is recommended to follow the trends in your area and decide based on all factors.
When you are looking for a Toronto Condo to call home, browse our listings for the perfect luxury loft or condo for you. At Toronto Condo Team, our dedicated real estate brokers ensure the move to your new Toronto Condo be smooth and stress-free. Whether you are buying your first condo in Toronto or want to learn more about picking the best neighbourhood, our team works with you throughout the entire process.