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Real Estate News Releases
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(EstateNewsWire.com, November 13, 2012 ) Bicester, U.K -- The Toronto Star reports a low vacancy rate and intense demand for new condo rental units in the most desirable buildings has led to bidding wars among some would-be renters. For condo rentals in Toronto, the vacancy rate has dropped from 3.5% a few years ago to 1.4% today.
A record number of condo construction projects have been approved, but most remain three to five years away from completion, so supply has not yet caught up with demand. As a result, renters seeking a top-class unit in a prime location have taken to offering condo owners more than their asking price.
For example, several months ago, Carol Endicott, 32-year-old public relations firm employee, and a roommate found an attractive new two-bedroom condo listed at $2,000 per month. It had lots of amenities and a convenient location for commuting, so they applied. They soon learned four other applicants were also seeking the unit, and one couple had offered to pay $2,700 monthly for it.
Luckily for Endicott and her roommate, the owner chose them as most likely to be good tenants and keep up the property, even though their $2,100 bid was $600 below the highest offer.
Investors own at least 30% of the condos in Toronto’s newest high-rise luxury condos. in some buildings, nearly all units are held by investors. An executive in one Toronto property management firm says the tight rental market gives owners great leeway to be picky on which bids they will accept, and often brings in higher-than-asked bids from competing applicants. With demand outpacing supply, tenants are also more likely to extend their stays in upper-level condos.
Area realtors say rents for top-quality condo rentals have jumped by about 20% over the past two years. They also say the higher prices are causing more renters to think about bringing in a roommate, even in single bathroom, one-bedroom units.
Some rental applicants are willing to raise their bids in order to get a luxury location. Others may decide the higher rent is a trade-off for the lifestyle convenience of being able to walk to work or even come home for lunch, plus the cost savings from not having to own a car.
To succeed if a bidding war breaks out, Endicott offers this advice: “Stay strong. Don’t give up. And have a good credit rating.” One ReMax agent who helps clients deal with the tight rental market advises them for finish their paperwork before they even start looking. That means not just a good credit score, but also a letter of employment conforming salary and, if possible, a reference from a previous landlord
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Source: EmailWire.Com 
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