Securing a desirable rental unit in Toronto can be a challenge. Toronto’s robust economy and varied economic activity (banking, media, medical, entertainment, television, to name a few) combined with an annual influx of thousands of New Canadians makes Toronto’s rental market very competitive.

For that reason, choosing a realtor who can help you navigate the process and use your credentials to your advantage is imperative. There are a few major things to keep in mind.

1. Timing – There are certain times of year (mainly summer and fall) that there are a deluge of new applicants looking for the same thing: one bedroom, downtown core, with or without parking, about $2K, well-kept newer building….  It’s not at all unusual for these properties to lease for hundreds of dollars OVER asking. Yes, you heard right. There are bidding wars on rentals in Toronto. So keep in mind it might take a few tries to get a successful application.
2. Pets – Pets are guaranteed to make your search more difficult, in spite of recent legislation expressly forbidding it discrimination based on pets. While it is technically illegal to forbid leasing to people with pets (save for times when condo bi-laws supersede provincial law), it happens all the time. You can improve your odds of having your application accepted by offering a refundable Pet Damage Deposit. The amount can vary but figure upon $500-1,000 as being a reasonable way to start. Your realtor will ensure the terms of your deposit are clear and legally binding upon termination of the lease, to assure you will be refunded your pet damage deposit upon departure. That is, of course, if your pet has caused no damage.
3. Your credentials – Landlords, naturally, want responsible, well established tenants. For this reason they are looking for people with good credit (700+), a healthy earnings to expenditure ratio (assures you will pay), and complete documentation from the start.

Here are the things you will need to begin your search. Nearly every time I encounter a new lease client, they want to start the process by looking at a few places. Sadly, in Toronto, there is no time to dilly-dally getting documentation together (which can take weeks) once you find something you like. So to prevent disappointment, I suggest you start by:

1. Contacting your agent and discussing what you’re looking for. This will get the ball rolling.
2. Order your credit report. It’s important that you get a credit report that has a numerical credit score. www.experian.ca or www.equifax.ca are two good places to start. It’s usually about $25 per report
3. Get your rental application filled out AND SIGNED!
4. Contact your HR department or boss and get an employment letter. Here is a sample of an effective employment letter. I would suggest you cut-and-paste, send it to the relevant party, and then have them print it on company letterhead, sign, and return it to you. Dear Sir or Madam, I’m writing to confirm that _________ has worked here as a __________ since _______ . She is a full-time/temporary employee in good standing and earns _________ (if commission detail, if salary, amount per year or month). Please do not hesitate to call me if you have further questions or require confirmation of _______ employment details.
5. Collect a  few months of pay stubs, proving your employment income. This is becoming increasingly common.

There are also times where renting something through a apartment building or property management company would be advantageous. These times include when you have pets, have less than stellar credit, are unable/unwilling to provide a pet damage deposit, or when your budget is not realistic for the area you want to live in (assuming it’s Toronto and you want to live in a leased condo). I regularly suggest to clients in these situations that they apply to companies such as: Greenwin Properties, Medallion Property Management, Starlight Property Management or Cap Reit Property Management in these situations.

Another point to consider is this. If you want to lease a condo or freehold apartment in Toronto and are not the ideal applicant, do not despair. You could improve your odds by:

1. Offering to increase the amount of a deposit you are willing to make (an extra month as a security deposit, etc.).
2. Demonstrating proof of savings (helpful in the case where a New Canadian doesn’t have established credit here) such as savings or investments in the applicant’s name.
3. Bringing a copy of your credit report from your last country of residence if you do not have established credit in Canada. This will often make it more difficult to interpret, so be prepared to translate it.
4. Finding a co-signer/guarantor who will guarantee that you will pay your rent. They will need to provide their employment letter (as above), credit report, and also be able to sign your lease.
5. Finding another home for your pet (painful as it is!)
6. Staying where you are for the time being, and working toward improving you credit score and employment history.

And one final thought. As a lease is always a much lower transaction cost than a purchase, people are (mis)led to believe there will be less paperwork and it can be treated more casually. This is, I’m afraid, not the case. I often hear “why is there so much paperwork with a simple apartment rental?” the reasons why are these: In addition the usual documents we need (Working with a Realtor, Buyer Representation Agreement, Offer, Confirmation of Co-operation), there is also the rental application, employment letter (for everyone involved), credit scores, past landlord references, and more depending on the deal. It’s in your best interest to be as efficient as possible to get all of these requirements completed before that first showing. The buyer’s agent isn’t the one requiring them, they’re simply the messenger, it’s the listing agent and their client, the landlord, who need them.

As always, I’m happy to discuss buying, selling or renting in Toronto. Please feel free to give me a call if you have any questions or just wish to talk it over. I’m easily reachable and can be trusted to give you the full and honest story.