5 tips for finding a rental apartment in a competitive market

Rising interest rates have kept many would-be home buyers in the rental market, driving up demand in major markets across Canada.

Simultaneously, students and remote workers are returning to cities and snatching up rentals as they arrive. Amid tight market conditions, prices have surged in places like Toronto and Vancouver.

According to the Toronto Regional Real Estate Board’s latest Rental Market Report, the average rent for one and two-bedroom condos in the GTA hit record-highs in Q2 2022.

The average one-bedroom now runs $2,269 per month — a 20.2% annual increase — while a two-bedroom costs $2,979 per month, a 15.3% rise from a year prior. Both figures surpass the previous peak seen in Q3 2019.

At the same time, there was an 11.4% annual decline in the number of transactions. As Royal LePage notes, the dip is not due to a decrease in demand, but rather can be blamed on a “significant” drop in the number of listings — they fell nearly 30% year-over-year in Q2 2022.

A similar story is playing out in Vancouver. According to a recent Rentals.ca report, rent for a one-bedroom in the city hit $2,412 per month in June, a 19.17% increase year-over-year, while the cost of a two-bedroom increased 26.48% annually, reaching $3,597 per month.

With rental rates expected to increase further in the coming months — leading to even stiffer competition — Royal LePage has compiled a list of tips to help prospective tenants navigate the market.

From good first impressions to good credit, here are five tips from Royal LePage that will help you find a rental in today’s competitive market.

1. Make a good first impression.

When meeting with a landlord or their agent, Royal LePage recommends being on time, being polite and respectful, and looking presentable.

“For a landlord, the most important factors when choosing a tenant are finding someone who will take good care of their property and who will pay their rent on time,” said Kevin Axford, realtor and property manager, Royal LePage Sterling in Greater Vancouver.

2. Personalize your application

Including a written letter, photo, or video can help your application stand out above the rest, especially if multiple offers are involved, Royal LePage advises.

“Treat your rental application like a job application,” said Amrit Walia, sales representative, Royal LePage Signature Realty in Toronto.

“In this competitive environment where there could be a dozen other applicants vying for the same property, it’s important to put your best foot forward right away.”

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3. Arrange a guarantor

According to Royal LePage, listing agents and landlords typically want someone with an annual income that’s 40 times the cost of monthly rent.

If you’re a student or don’t have full-time employment, arranging a guarantor to co-sign your application can help your chances of securing a rental.

4. Complete your rental application fully and honestly

Have all the necessary supporting documentation — like a letter of employment with salary, a recommendation from a previous landlord, and a credit report — organized and ready to send to the landlord or listing agent.

“In today’s market, a renter’s best chance at securing a property is to act swiftly,” Axford said. “It’s imperative to be actively searching on a daily basis and to respond to attractive listings quickly. Properties are being picked up in a matter of days.”

5. Have your credit score ready

Having good credit is obviously important to securing a rental, but so is knowing your credit score before you apply for a property. Royal LePage says most listing agents and landlords will ask for a full credit report. They also tend to prefer a report from a reputable agency, like Equifax or Borrowell, rather than a bank.

“Show that you are professional and responsible, be decisive and willing to act quickly, and ensure that you are fully armed with all the necessary documentation before you initiate the application process,” Walia said.

“With fewer listings to choose from, it is becoming increasingly difficult for renters to get deals done.”