Finding Accommodation / Rentals in Toronto (Part 1)

Anyone who’s done any research into moving to Toronto may have come across a number of articles in the news suggesting what a nightmare it is to find a good rental in Toronto.

I began my search last night and was amused to see the sheer number of people complaining about the situation in Toronto. Supply and demand dictate price and with the number of immigrants coming in to the city, the logical conclusion is for prices to go up.

Most immigrants coming from Asian countries (India in particular), tend to own or live with their parents. Even those that rent, don’t find it that difficult. Maybe because it’s their home country and they’re familiar with it, maybe it just doesn’t require the same amount of documentation you might require in Toronto.

Before I get into the details let’s just breakdown the types of rentals one can get. There are 3 types of houses in Toronto: Condos, Apartments, Houses. Condos are like flats in London or India that are part of a building which comes with a few amenities. Houses are like bungalows or separate houses that may have backyards or patios etc and apartments are like regular flats.

1. Short Term (AirBNB etc.)
   If you aren’t familiar with AirBNB go check it out on http://www.Airbnb.ca. These are short term lets anywhere between a week up till a month. The listings on Airbnb are usually very well connected and centrally located and ideal for a new immigrant to first move in and get settled.
2. Long Term
   Long Term rentals are usually more than 3 months and upto a year or more. Long term rent is the most challenging part of the immigrant journey. Although people complain about Toronto, I’ve lived in London for a year and believe me, it’s the same in most of the world metros. As mentioned earlier, supply and demand.

Based on extensive research (24 hours), I have shortlisted 2 basic things required in order to successfully get a long term rental property once you move to Toronto. In my upcoming posts, I’ll be listing more details but to keep your attention, I’ll keep this short.

1. Credit Score
   
   In Canada, just like in most western countries, you’re worth is judged not by what you own, but by how much credit you have. When you initially land in Canada, you will not have a credit score. The only way to improve your credit score is by spending money on your credit card or getting a post paid connection which reports your payment history to credit agencies. Building a credit score takes time and most bank will not offer you a good rate. You have to navigate this maze over time (which i’ll cover in this blog too).
2. Job Offer / Employment Information
   
   I think its safe to assume that most immigrants arriving in Toronto do not have a job offer in hand. Landlords tend to prefer renters with job offers as they are more likely to pay the rent on time and spend most of the week in the office, thereby not using up the utilities at home. Just like anywhere around the world, the best way to make sure a person is of good character and honest person is by where he works.

You probably won’t have both of these things, but not to worry. Let’s explore how we can go about finding the right place one-step at a time.

Step 1: Find out where you want to live.

Step 2: Check the following websites : Kijiji.ca, Condos.ca, Facebook

Step 3: Open a bank account and get a secured / unsecured credit card

Step 4: Get a post paid connection for your phone that reports to credit agencies (like Telus)

Step 5: Contact Realtors. Realtors do not charge tenants for finding homes. Landlords pay realtors and they have your best interest in heart. Realtors are the best option to find housing as they are experts, they know their way around the problems of not having a credit score or a job offer (They’re also free).

Step 6: Make sure you have a significant amount of money in your bank

Some landlords may just see your bank balance and not require a credit score. For example, someone who has 10,000+ CAD in their accounts obviously does not require a credit score for a 6 month lease. (This is a hypothetical situation of course, there are many variables involved)

Step 7: Get a co-signer for your lease

If you have close family or friends living in Canada, you can ask them to be a co-signer of your lease. Their credit history is considered and they act as a guarantor to the landlords.

Some words of caution

1. Building a credit score requires strategy. Don’t just go spending money and paying it back. Speak to an expert at your bank or look up articles on this online. I believe the best practice is to spend 35% of your available credit and pay it back on time. Doesn’t mean you pay back the entire amount, but pay on time. Even if it’s the minimum due.
2. DO NOT PAY CASH. There have been recent cases of landlords defrauding vulnerable migrants by promising accommodation at places they do not own and taking cash from migrants. There are also chances of the cash you’re carrying getting stolen. Keep initial meetings with landlords in public places if you feel suspicious.
3. Rent Control. Buildings built after 1991 do not come under rent control laws. This means they can increase your rent as per their wishes. There have been cases where landlords have hiked the rent significantly over short periods of time. It is advisable to look at some old buildings that were built before 1991 as you might find a bargain. They can’t increase your rent more than a certain percentage each year as per the law.

I’ve tried to cover as much as I can in 1 post but this topic is too vast to do this. I’m looking for accommodation in Toronto and I’ll post about it soon. If you’d like to know more please check out my YouTube channel or subscribe to the blog. You can also contact me on nachiket87[at]gmail.com.