22 Dec A Helpful Guide To Rental Increases For 2023
With inflation and costs of living going up around the Greater Toronto Area, rental increases are common and even expected.
This could affect tenant turnover, more repairs, maintenance, landlord-tenant disputes and an increase in eviction rates. For a landlord and real estate investor in Toronto, that’s a lot to think about and work through.
When it comes to the rental rates increasing, avoiding potentially costly turnover numbers lies within one thing, the quality of the tenant you have.
Here are a few ways you can avoid being affected by increasing rental rates across Toronto
Improving your screening process
When it comes to less turnover caused by increased rental rates, screening your tenant is critical. If you have a less-than-ideal client, that could equate to the tenant leaving earlier than expected, causing more maintenance costs and vacancies to find a new tenant at a higher price.
At DelRentals, we handle the full screening process for you to allow you to focus on ways you can improve your unit and add more value to the tenant, instead of worrying about if you are asking the right questions.
After communicating with our investors, we have found that investors who partner with us have a lower eviction rate than if they are responsible for finding a tenant themselves.
Condo Screening Process vs. Apartment Screening Process
With screening being so important, there is a difference between screening someone living in a condo building versus a tenant living in an apartment. One of the main differences between condo buildings is that they are subjected to the scrutiny of the condo board. This is a more rigorous screening process which can also affect your reputation in the building. If there is a history of occupants of the building needing to be more favourable, new tenants may avoid your building altogether even before you have a chance of showcasing your unit.
Qualifying An Ideal Tenant
When it comes to what qualifies someone as an ideal tenant, it could come down to many aspects. An ideal tenant makes the difference between a struggling rental property and a thriving passive income generator. A quality tenant provides supporting documents to show a consistent source of income, stable employment, a more than average credit score with a history of paying on time and good rental references. Someone looking for a rental for a long-term stay is one that is predictable in lifestyle (to an extent) and doesn’t cause any headaches.
With the rental increase guideline being at 2.5 percent for 2023, this puts stress on tenants looking to stay long-term in your rental unit. At the end of the day, tenants will pay for a condo rental in Toronto they can afford or one that continually showcases value to them.
You can see that qualifying your tenant before the move-in is crucial to avoid turnover, maintenance costs and absentee cost of a vacant condo rental unit. This is where DelRentals helps hundreds of real estate investors with the tenant screening process to avoid these costly issues.
Learn more about how you can obtain ideal tenants for your condo rental property in Toronto by contacting DelRentals today.