jn_12
Senior Member
http://www.yourhome.ca/homes/reales...t-s-a-renter-s-market-as-condo-building-booms
My girlfriend and I live in the apartment building described in the first half of this article from today's Star (the italicized part). We've been living here since March 07, and after the first year we were on a month to month lease. We've been reluctant to sign a one year lease because of job uncertainty (I've been in grad school, she works in TV). When we moved into our one bedroom, we were paying 1250/month and with annual increases we are now up to 1300/month. In the article, the manager of our building admits that it's tough to attract renters to the building, so much so that they're now giving one month free and starting tenants at 1199/month, plus they get entered in a draw to win a smart car. We've been ideal tenants (in a building where turnover is high and missed rent notices can be seen on quite a few doors every month) but we're concerned that our rent will go up again in March, at which point we'll be paying $125 more than a new tenant (plus the new tenant will have saved an additional $100/month from getting one month free, so it's a $225 difference).
What we are wondering is how we can potentially go about using this information against our building to get our rent lowered? How would you go about it? Obviously signing a year long lease would be a start, but how should we negotiate?
Any help would be appreciated. Thanks.
It's a renter's market as condo building booms
December 9, 2009
Tony Wong
BUSINESS REPORTER
Christina Medeiros sees the competition going up every day.
The leasing manager for Maple Leaf Quay, an apartment building on Toronto's Harbourfront, is surrounded by cranes that are building soaring new condominiums that have enticed potential tenants away from her units.
A housing boom with low interest rates has seen many renters buy their first homes. Others are renting newer condominiums.
But Medeiros isn't taking the defections lightly. This fall, she reduced rents. A two-bedroom is now $1,499. A year ago it was a $1,599. A one-bedroom is now $1,199, compared to $1,325 last year.
As well, anyone who signs a one-year lease gets a month's free rent and a chance to win a Smartcar.
"We had to be creative given the conditions," said Medeiros. "Interest rates have had a major impact on the rental market."
The movement out of rental housing saw Ontario-wide vacancy rates jump to 3.3 per cent this year from 3.1 per cent last year.
And Medeiros can expect to have even more competition in the years ahead.
There are an estimated 35,000 to 40,000 condos under construction in the Toronto area, the bulk of which will be completed in 2010 and 2011. Some will be purchased by investors to compete as rental stock.
Still, the market took a break in November, as Toronto-area housing starts declined by 25 per cent from a month earlier, according to figures released by the Canada Mortgage and Housing Corporation Monday.
The seasonally adjusted and annualized rate of housing starts hit 25,500 units last month.
"The decline came solely from the highrise sector and should be viewed as a blip in the recovery process," said Shaun Hildebrand, senior market analyst for the CMHC.
"A large backlog of highrise units are coming close to the construction stage."
Nationally, housing starts grew, with 158,500 units registered in November, up by 0.7 per cent from October.
"Canadian construction activity continues to rebound from the depths of recession and should be pulled along further by strong demand," said economist Robert Kavcic of BMO Capital Markets. "The Canadian construction industry is looking like a source of strength in the coming year."
My girlfriend and I live in the apartment building described in the first half of this article from today's Star (the italicized part). We've been living here since March 07, and after the first year we were on a month to month lease. We've been reluctant to sign a one year lease because of job uncertainty (I've been in grad school, she works in TV). When we moved into our one bedroom, we were paying 1250/month and with annual increases we are now up to 1300/month. In the article, the manager of our building admits that it's tough to attract renters to the building, so much so that they're now giving one month free and starting tenants at 1199/month, plus they get entered in a draw to win a smart car. We've been ideal tenants (in a building where turnover is high and missed rent notices can be seen on quite a few doors every month) but we're concerned that our rent will go up again in March, at which point we'll be paying $125 more than a new tenant (plus the new tenant will have saved an additional $100/month from getting one month free, so it's a $225 difference).
What we are wondering is how we can potentially go about using this information against our building to get our rent lowered? How would you go about it? Obviously signing a year long lease would be a start, but how should we negotiate?
Any help would be appreciated. Thanks.