Toronto Income Property Newsletter: October 2016

Now, more so than ever, may be the time to become a landlord in Toronto. The bidding wars for real estate in general in Toronto is causing the rental market to heat up. People that cannot afford the high prices of owning a home are being forced to consider renting as an option. And as such the prices for quality rentals is starting to go up.

I have experienced competition first-hand for people trying to rent places. It is almost like the housing market where you have to strike fast and often offer a little more than the asking price. There can often be several potential renters looking at the same apartment. I have seen basement apartments go for two hundred dollars a month over the asking price. Several articles I have read suggest that one bedroom condo rentals are also at an all-time high.

The vacancy rate in Toronto has always been good for landlords in Toronto. If people are start to fight for rentals as they have been for buying properties, the income property market will remain as strong and competitive as ever.

If your duplex or triplex has a big yard, your tenant(s) have both an aesthetic and health interest in doing the yard work. The lawn should be mowed regularly — long grass looks bad, and it attracts rodents and other pests, which are likely to find their way into the house.

Whose responsibility is it to prune back overgrowth, water the grass and plants, and rake leaves? If you have a driveway or paved walkway, who’s responsibility is it to shovel the snow? Your or theirs?

When the use of the yard is included in the rental agreement, it’s natural to presume that responsibility for basic upkeep goes with it. It is part of general maintenance of the premises. In some areas, though, lawn and garden maintenance is clearly the landlord’s responsibility, unless otherwise specified. When a tenant has exclusive use of the yard, responsibility for maintenance usually goes with it, while the landlord is usually responsible for repairs.

Since there is no definitive answer a savvy landlord will spell out the jobs the tenant must do in the lease. A savvy tenant, on the other hand, should read the lease carefully and negotiate modifications before signing it. When there are multiple tenants the landlord should be very clear on who looks after what. Remember that in the winter time Canada Post requires a clear path to your door in order to deliver the mail. Quite often landlords will give a reduction in the monthly rent for doing some of these maintenance chores.