How to Prepare Yourself to Negotiate a Lease Like a Pro
Warm summer months are just around the corner, and many renters in Toronto are preparing to move out of their homes in search of better deals. Although the Greater Toronto Area saw a record number of rental transactions during the first couple of months in 2021, there’s still room for negotiations for tenants in not just pricing, but also lease obligations, move-in incentives, and more! Consider the following tips to get the perfect lease you need:
Start with a comprehensive online research
You just came across a 2-bed, 2-bath listing for $2,500 in downtown Toronto. As you’ve heard about how competitive the rental market here can be, do you try to seize the opportunity and hand over the deposits right away?
The answer is, of course, no! Take it from us: do your homework, no matter how good the deal seems. Check out various websites to see what comparable listings are going for in the area, especially in the same building if it’s a condo or purpose-built rental unit. Make sure you do an apples-to-apples comparison for all the costs that you need to factor into before signing the lease. For example, unit “3502” is listed for $2,500 with a lake view and water included, while unit “904” is listed for $2,750 with all utilities, parking and locker included — what would be a better deal? Look out for any move-in incentives being offered as well. These won’t last forever!
Also, you’ll be surprised to know that many tenants don’t actually read the listing description when meeting the landlords. Don’t be like most people — it’ll be your loss if the landlord advertised the internet as being included, but then decides to not mention this in the lease, because you never pointed it out.
For more prominent buildings, you may be able to find reviews online, but they’re often not available for single-family homes. Take reviews with a grain of salt, however, as there are often more negative reviews of apartment buildings than positive. Keep an eye out for recurring complaints — if most of the recent reviews for a building point out pest infestation, there’s a good chance that the building still suffers from this problem!
Take your time to look offline
If possible, we always recommend you visit the property in person. Although pictures, videos and 3D tours can be helpful for reference, they can be edited and are not always up-to-date. They also don’t tell the whole story of the property — think odours, noise levels, what the neighbours are like. Being physically present at the property will give you the opportunity to identify broken cabinets, malfunctioning faucets, or scuff marks on the walls that your landlord’s phone camera didn’t catch, and all these could be leveraged when negotiating with the landlord.
Although it has become less preferred during the pandemic, ask your landlord if you could bring a friend or family member. An extra set of eyes may help you notice something about the property you may have missed.
You may even bump into future neighbours if you go in person. You could ask for their experiences and perspectives on the building, neighbourhood or on-site staff. You’ll find no better reference than someone who actually lives in the same building, especially when nothing is at stake for them to provide an honest feedback.
What’s your negotiation strategy?
Home searching can be a very emotional decision, and that’s why you need to be disciplined to make the best decision for your next long-term residence. Most tenants in Ontario will sign a lease for a minimum of 12 months, so whether it’s the rent price or street noise or parking situation, you will need to take all factors into consideration before signing that lease.
Before your search, we recommend that you have determined a set of criteria that you’ll stick to, such as finalizing your gross monthly budget and what you are willing to compromise on, such as having a locker included or other specific utilities. Have a list of features that are must-have’s and nice-to-have’s. For example, you love everything about this particular house, except the colour of the den is pink. You ask the landlords to paint them white, but they’re not willing to — could you propose to them that you can paint on their behalf?
Another tip for those that may not have a strong application profile: think about how you could stand out from the crowd. If you’re a newcomer without established credit profiles, a student without proof of income, or you just have a low credit score, you could try adding a guarantor to your application, offer to take care of the common area maintenance, or put down more rent upfront than just first and last month’s.
Once you have everything prepared, dress nicely when meeting with the landlord and be confident! First impressions are always important, and although many may not agree, it will be a big factor in negotiating the lease for your next home. When you end up finding yourself in an uncomfortable position, always remember: it’s okay to walk away and explore other options.
