So you want to rent for awhile, eh?

Buy Sell DiceSo you want to rent for awhile, eh? I hear it all the time. People who think they can rent for awhile and wait for the market to cool off so they can buy something later when the market cools. Unfortunately none of us has a crystal ball and none of us can time the market perfectly. Yet it amazes me that many people think they can do it all the time.  No one would claim to be able to time the stock market so I’m not sure why they think they can time the real estate market.  For years we’ve heard many well educated economists predict a market crash. Yet year after year, their prediction doesn’t happen. I’m not saying that the market will only go up because we know that all markets are cyclical. But the most educated economists are continually predicting the real estate market incorrectly. What makes it worse is when they suck the general public into believing that they can time the market and rent for awhile to take advantage of an impending softening of the market. 

What usually ends up happening is that they are just delaying the inevitable home purchase and the market starts to run away from them. So now they can afford even less house than they could before. So by the time they have rented for awhile, they now have to accept something smaller than what they were first looking for. I’ve seen it time and time again, that people who wait to see if the market falls end up staying out of the market and wasting more money renting. When they buy into the market, they buy in at a higher price and have lost out on the appreciation they could have had over the years. As Will Rogers once said “Don’t wait to buy land. Buy land and wait”. Real estate is something that does appreciate over the long run so getting in as early as you can makes sense. Renting to wait out the market will only cost you money.

Beware of Short Term Renters in Your Condo Buildings

For Rent Short Term


When I travel I love finding great places to stay on or I’ve never stopped to think of how this short term rental phenomenon is impacting the condos in downtown Toronto. I am the president of my condo corporation and we’ve recently discovered a few units in our condo building were being rented through short term rental sites. In the condo declaration it clearly states that rental terms shorter than 6 months are not permitted. Now most people don’t read the condo declaration regularly to be concerned with all of the rules. However once the condo corporation becomes aware of the problem a terse letter will be sent to the owner/landlord in question to make them aware of the rules. If the first or second letters don’t change their behaviour than the condo corporation will have no choice but to get their lawyers.  The resulting legal bills will be charged back to the offending unit.

Short-term rentals are becoming more of a problem in the city. I was recently out with clients who were complaining about the influx of new people they had started seeing in their west end condo building. I suggested that they search their address on a few short term rental web sites. Sure enough they went home and did exactly that and were shocked to learn that some of the units in their building were on kijiji being advertised as a short term rental.

The short-term rental problem is affecting many of the condos in our city. These vacation renters simply do not care as much about the welfare of the building so it’s important that owners be diligent in their efforts to root out the units being used for short term rentals in their buildings. So, if you live a condo building, spend some time searching on the short term rental sites to see if any of the units in your building are being rented out, then inform your property manager and board so they can start resolving the issue.