Are you looking to rent a condo in Toronto? Becoming a tenant in Toronto can be more challenging than you can think. Finding the right unit is just one of the first steps, and the number of other factors that go into consideration can make it quite a challenging task. What neighborhood should you choose? Is going over your budget the right option? What are the amenities that you require? There are plenty of points to note and keep in mind before becoming a tenant in Toronto. Here is a complete guide to letting you know the ins and outs.
What are the options available?
If you are interested in buying a residential property in Toronto, you should analyze the options available to you. The following are the three main options available to interested tenants.
- Houses
The Downtown Toronto region is one of the most desirable locations that most tenants are interested in. Therefore, several homeowners are converting their part of the properties into apartments here. Some houses are also converted into multiple apartments. However, one of the best advantages of renting a house in Toronto is living in a spacious residential neighborhood with plenty of outdoor and parking space.
- Apartment Buildings
This option isn't available easily nowadays. There are limited apartment buildings which are owned and managed by a single company, and over the past few decades, the demand for apartments in Toronto is decreasing. However, there are still some quality options that interested buyers have.
- Condos
The number of condos in Toronto is increasing rapidly. There are new developments upcoming and the amenities provided to tenants is world-class. Most of the condos are located in ideal locations around the city with great transportation facilities. There are plenty of reasons why people are shifting towards condos at a rapid pace.
The basic costs of living
Before you decide which is the right option for you, you should know what will be the costs of living and how easy or difficult will it be for you to manage. Your normal expenses will be more than the basic rent or maintenance. So, here are the factors that go into consideration to decide the costs of living in Toronto.
The security deposit and rent of first and last month
Most of the landlords ask new tenants to pay the security deposit before they rent an apartment in Toronto. With this deposit, one will be able to cover all the costs for potential damages to the unit. In case of no damage to the unit, you will get the amount back once you vacate the unit.
In most cases, the deposit isn’t higher than the first month’s rent. Some landlords even ask the tenants to pay for the last month’s rent to pay for your last month in the unit. On the hand, some landlords in Ontario use the last month’s rent to pay for the damages to the unit.
Basic utilities
Whenever you move into a new building or unit, there will be some charges that you will have to pay for all the basic utilities. These may be a telephone, WiFi, cable, etc. All these basic requirements are needed by almost every tenant. Moreover, the service providers will ask for security deposits as well, which you will get back once you terminate the connection.
Other expenses
Along with these, there are some other expenses as well that tenants have to pay. The costs for moving, moving materials, transportation, etc. should also be considered.
What factors should you consider before getting a new house?
There are plenty of factors that tenants should consider before investing in a property. So, what are the points to keep in mind before getting a new house in Toronto? Find out.
- Neighborhood
Toronto is a very diverse and large city. There are different neighborhoods that offer different styles, eateries, demographics, and lifestyle. So, how should one find the ideal location to live when there are so many options? You need to be clear with the requirements that you have.
Some factors that almost every tenant should consider are nearby amenities and basic necessities, nearest public transportation facility, educational facilities, entertainment spots, open spaces, etc. The neighborhood is one of the most crucial factors to consider while buying a home.
- Budget
Having a dream house in mind is a good thing. However, another thing to keep in mind is a realistic budget that is feasible for a particular individual looking for a house. Also, being fixated about particular pricing is not a very smart approach. Thus, pick a suitable range considering your financial situation, which is in accordance with the neighborhood that is appealing to you.
Here are a couple of tips that one can keep in mind to help you with choosing your budget for the condo that you are planning to rent:
- The ideal approach would be to opt for a budget that is up to 30 percent of your salary.
- Also, one must include additional expenses such as that of basic utilities, commute, tenant insurance, internet and WiFi facilities, parking, etc.
- Legal papers and documents
There are a lot of formalities and paperwork involved for the tenant as well as the owner. This is necessary to ensure a safe lease and contract approach. This would help in making sure that all the things are done legally and are accounted for. Here are a few significant papers required by a tenant in Toronto:
- A credit report: The landlords in Toronto are very particular about the credit report of the tenant. Therefore, it would be ideal to have it ready beforehand.
- Employment letter: Certain owners in Toronto demand an employment letter too. It is a simple authorized letter stating that the particular tenant is their employee. Also, it should ideally contain a few statements which show that the individual is good, sincere, and loyal.
- A rental application: This is a simple application or form that is to be given to the owner of the condo/ house.
- References: This is not a mandate. However, it is better to have references for a stronger impression. One could get references from relatives, friends, etc. mentioning the tenant's good qualities. An even more ideal approach is to have the previous owner write one for the best image.
Signing the lease
Tenants in Toronto have to sign a lease or agreement with the owner. This contains all the necessary statements that are legalized. Lease periods in Toronto generally range from six to twelve months. There are very few landlords/ owners that prepare lease even for a monthly term.
Here are a few things that one must keep in mind when it comes to signing a lease in Toronto:
- Deposits: Deposit amount varies as per the requirements of particular neighborhoods or individual tenants. For example, if the lease is being signed for a period of one month, the deposit can't be more than one month's rent.
- Rent increase: Every owner increments the rent by a certain amount. As per the current trends in Toronto, there can’t be an increment in the rent for a period of up to 12 months initially. Apart from that, there is a limitation as to how much the rent can be increased within a period.
- Permission to keep pets: Not all residential properties have permissions to keep pets. Most of the condo owners do not allow the tenants to keep pets in the house. There are chances that the owner withdraws your application for renting the condo in case you have a pet. Therefore, it is essential to be aware of the same from the start itself.
- Additional clauses: Owners can also have their own clauses as well. This could be regarding other constraints that they wish to put for their property.
These factors are enough to decide on a condo or any other type of accommodation that you are looking for. Now, once the renting place is finalized and the lease is made, few other things come into the picture. For example, moving to a new place would involve packing the utilities and transferring them to the new house. There are quite a few agencies operating in Toronto which provide packing and moving facilities at affordable pricing. Individuals can thus opt for the service of their choice. Also, renting a new place would also mean getting the house address changed for different bank purposes and other official documents. For these too, one can seek help from an agency or look for online tools for help.
The TorontoCondoTeam is the ideal site to surf through condos available for rent in Toronto as well as sale in different neighborhoods of the city. One can look for different pricing range available and check out the different amenities available in the condos. For tenants, the website is perfect for getting started with the process of finding the ideal condo for living in Toronto. One can check out the latest updates on different condos as well as developers on the site without any hassles. Check out our blog on How To learn the Ins and outs of becoming a landlord.
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