Here are three recent updates that Real Estate Investors in the Greater Toronto Area should know:
- Greater Toronto Area Condo rental prices and income have reached a peak
Rental deals available early in the COVID-19 pandemic are no more. The Q2 Rental Market Report recently released by TRREB (Toronto Real Estate Real Estate Board) shows that average rents for one- bedroom and two-bedroom apartments are now both at record levels, surpassing the previous peak in Q3 2019. The biggest jump in 2022 was among bachelor and one bedroom units.
- Bachelor units– $1,462/mo in January 2022 vs $1,829/mo in July 2022
- One bedroom units– $1,887/mo in January 2022 vs $2,269/mo in July 2022
The average monthly rent for a two bedroom unit is now $2,979 for a two-bedroom. Click here for the full report.
2. Ontario Rental Increase Guidelines for 2023
Ontario’s rent increase guideline for 2023 is 2.5%, below current rates of inflation. The rent increase guideline is the maximum amount a landlord can increase rent during the year for most tenants without the approval of the Landlord and Tenant Board. The guideline is based on Ontario’s Consumer Price Index, a measure of inflation calculated monthly by Statistics Canada using data that reflects economic conditions over the past year. Due to recent inflation, this would result in a 2023 guideline of 5.3 per cent, however the guideline is capped at 2.5% to help protect tenants from significant rent increases. Here are the full guidelines published by the Ontario Government.
- The 2023 rent increase guideline is applicable to most rent increases between January 1 and December 31, 2023.
- In most cases, the rent increase cannot be more than the rent increase guideline. Landlords can apply to the Landlord and Tenant Board for above-guideline rent increases, under certain circumstances, such as after eligible renovations have been paid for and finished.
- Tenants who may need help to pay their rent are encouraged to contact their local service manager to see what housing supports are available in their community.
- 37 Galleria Parkway- A Great Investment Opportunity
Just listed 37 Galleria Parkway #801 is conveniently located just north of Highway 407 and west of Leslie Street. 1+1 bedroom,650 Sq Ft condo in Thornhill.
There are not many units in this price range available in this neighbourhood for lease right now, so could be tenanted very quickly!
We like this as an investment for these reasons:
- Its attractive location – situated within walking distance to shops, groceries, restaurants, the 407/404, transit and more.
- Its amenities: tenants love having party rooms to entertain and well-equipped gyms. The 24 Hour concierge is also an attractive selling feature.
- It’s space: the den makes an excellent spot for a home office, separate from living space and bedroom.
Learn more about this property here, and please contact us to run the numbers!
As always, please contact us if we can answer any questions about real estate investing. If you have any friends, family, or colleagues that could benefit from this information, please don’t hesitate to forward this along or let us know so we can add them to this database of Investors.
“Be fearful when others are greedy. Be greedy when others are fearful.”
RESOURCES FOR REAL ESTATE INVESTORS
- SusanTaylorGroup.com/investment <– want to invest? We can help. We have helped countless individuals and holding companies purchase residential properties, and they have all benefited from positive cashflow, appreciation, or both. We are investors ourselves. We know what to buy and when to buy it.
- Ontario Ministry of Municipal Affairs and Housing <—go here for general info about rental rights, rent increase guidelines, and rental housing enforcement guidelines.
- Ontario Landlord & Tenant Board. <—go here to access forms for landlords and tenants to use for starting/modifying/ending tenancies.