Key Takeaways

• In-Depth Market Research Is Essential: Success in Toronto’s real estate market starts with understanding neighborhood dynamics, rental demand, and local regulations. Investors should evaluate vacancy trends, rent prices, and transit access before buying to ensure steady income and long-term growth.
• Positive Cash Flow Is More Important Than Appreciation Alone: While Toronto properties have appreciated significantly, smart investors prioritize cash flow. Ensuring that rental income covers operating costs helps maintain financial stability—even when the market slows.
• Professional Property Management Adds Long-Term Value: Hiring a property management company can reduce vacancies, handle legal compliance, and streamline day-to-day operations. In a complex, fast-paced market like Toronto, expert support can protect your investment and boost profitability.

Toronto remains one of the most attractive cities for real estate investment in Canada. With a thriving economy, growing population, and consistent rental demand, the city offers excellent long-term opportunities for investors. 

However, buying an investment property in a city as dynamic and competitive as Toronto requires careful planning and smart decisions. 

Here are the top tips to help you make informed choices and maximize your returns from CMG Toronto:

Understand the Rental Market First

Toronto’s rental market is fast-paced and highly competitive, which is one of the best reasons to invest in Toronto real estate. The city attracts a mix of tenants, including students and professionals, each with their own housing needs. High demand for housing has kept vacancy rates low, especially in areas close to public transit, universities, and employment centers.

Before investing, research average rental prices, tenant demand, and vacancy trends in your target neighborhoods. This will help you estimate your rental income and choose a location that aligns with your investment goals.

Pick the Right Neighborhood

Toronto is made up of diverse neighborhoods, each offering different investment potential. Central areas like Downtown and Midtown are more expensive but offer high rental yields due to their convenience and lifestyle offerings. On the other hand, areas like Scarborough, Etobicoke, and North York offer more affordable property prices and appeal to tenants looking for space.

Look for neighborhoods with ongoing development and access to public transit, as these factors often translate to higher property values and rental demand. Understanding the community and its growth potential is key to making a profitable investment.

Focus on Cash Flow, Not Just Appreciation

While Toronto has seen strong appreciation over the years, successful rental property investments rely on positive monthly cash flow. This means your rental income should ideally cover mortgage payments, property taxes, insurance, and maintenance, while still leaving you with a profit.

A common mistake investors make is focusing too much on property value gains and underestimating operating costs. To avoid this, make sure you evaluate the property’s cash flow performance before buying. Even if appreciation slows down, positive cash flow ensures long-term financial stability.

Don’t Skip Inspections and Due Diligence

Even properties that look move-in ready can have hidden issues. Older Toronto homes may have outdated electrical systems, leaky basements, or structural wear. A professional home inspection is essential to uncover any underlying problems that could cost you down the road.

If you’re buying a condo, review the status certificate to learn about the building’s financial health, upcoming repairs, and bylaws. Be wary of properties with low reserve funds or planned special assessments, as these could significantly increase your expenses.

Learn the Local Laws and Regulations

As a landlord in Toronto, you must follow the Ontario Residential Tenancies Act. This includes rules about rent increases, eviction processes, maintenance standards, and tenant rights. Rent control laws apply to many units, especially those built before November 2018, which limits how much you can increase rent each year.

You should also understand local bylaws regarding basement units, property standards, noise regulations, and fire safety. Ignoring these laws can lead to fines and legal trouble. Staying informed and compliant protects both your property and your reputation as a landlord.

Think Long-Term

Toronto real estate should be viewed as a long-term investment. Market conditions can shift with changes in interest rates, government policy, and global economic trends. Rather than trying to time the market, focus on steady income, property improvements, and tenant satisfaction.

Owning a rental property is a long-term commitment that involves planning, budgeting, and ongoing management. If you’re patient and proactive, your investment is more likely to grow in value and generate reliable income over the years.

Hire a Professional Property Management Company

Managing a rental property can be time-consuming, especially if you own multiple units or don’t live near your investment. A professional property management company can take care of marketing, tenant screening, lease preparation, rent collection, maintenance, and legal compliance.

Having a skilled team manage your property ensures timely responses to tenant concerns, fewer vacancies, and less stress on your end. Property managers are also familiar with Ontario’s landlord-tenant laws, helping you avoid legal pitfalls.

While they charge a fee (usually a percentage of monthly rent), the time, energy, and potential legal issues they save you often outweigh the cost.

In Toronto’s active market, having local experts by your side can give you a competitive edge, especially in responding to maintenance emergencies, negotiating lease terms, and advising on rent adjustments.

Final Thoughts

Toronto is a strong market for real estate investors, but buying a rental property here is more than just picking a nice home. You need to research the area, calculate the numbers, plan for ongoing expenses, and comply with provincial laws. A strategic approach is essential.

Most importantly, having a reliable property management company can help you enjoy the benefits of your investment without the daily stress of managing tenants and maintenance yourself. Contact CMG Toronto today.

By Jeanne Sager | Oct 2, 2017

With a rental lease set to expire, most landlords want to show the apartment as often as possible, which means they’ll need a notice of entry to get into your place. They’ll be eager to find new renters, but the law states they can’t just unlock your door at any time and pop in for a visit. They also aren’t allowed to show the apartment so many times that it creates a nuisance for you and disrupts your life.

If you’re a renter, read on for the rules of landlord entry, so you know what to expect.

If you need help with property management, tenant management services, or looking into a property investment – contact CMG Toronto today. The best property management company in Toronto.

Landlord notice of entry

Landlords are legally obligated to provide a renter with notice that they’ll be entering the premises—for any reason. Whether that’s to show the property to a potential renter or to fix a leaky faucet, the law is clear: Legal tenants have the right to quiet enjoyment of their home.

“The landlord must provide reasonable notice in writing (generally, 24 hours) of his intent to enter—and to do it only during normal business hours,” explains Bryan Zuetel, a Realtor® and real estate attorney from Irvine, CA. If a tenant is home and consents to entry, the 24-hour notice can be waived. Then again, it is OK for a tenant to deny entry to their landlord if they show up unannounced.

If the landlord intends to rent or sell the property to someone new, they may ask you to allow additional showings, Zuetel says. And depending on what’s spelled out in your lease agreement, you may have to comply. “For example, under certain conditions, a landlord may require that the tenant permit a weekend open house during regular business hours, and the landlord may provide oral notice of entry to the tenant,” he says.

So pull out the paperwork you signed if you’re worried that your landlord is crossing the line. Landlords who are following those guidelines are probably in the clear.

How often can a landlord show an apartment?

Rental law does not specifically stipulate a maximum number of times a landlord is allowed to show an apartment to prospective tenants. It does, however, provide some cover for tenants. “The landlord may not abuse the right of access, or use it to harass the tenant,” Zuetel explains.

That might sound vague, but if you do feel like your landlord is abusing the right of access and bothering you too often, you should try talking to them first, before calling an attorney. “Let them know that you are feeling stressed from all the showings and ask for a break for a few days—that seems more than reasonable,” says Holly Pasut, a Realtor with Hines and Associates Realty in Cornelius, NC. If that doesn’t help, you can then seek legal action.

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By Sasha Brown-Worsham | Nov 2, 2017

If you had to choose between having the perfect apartment or a sweet, sloppy, loving pet, which would you pick?

Fifteen years ago, my husband and I found ourselves in this situation when we adopted a stray dog named Rocky—all high-strung energy and cuddles concentrated in a tiny Chihuahua body. He suited us perfectly.

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Source: https://www.realtor.com/advice/rent/we-gave-up-our-apartment-for-our-pet/ |  11.03.2017 |

Need help? Contact the best property management company in Toronto.

By Colleen Kane | Oct 12, 2017

You, holing up in an illegal rental? Never!

At least, that’s what I thought before I was kicked out of my own illegal rental when I was, oh, about eight months pregnant. Worst of all, I had no idea my cellar apartment was illegal. That’s a horror story for another time, but it has a universal takeaway: Knowing what’s legal in your rental market can save you a boatload of trouble in the long run.

Laws differ by location, so you can protect yourself by researching the building and its local ordinances. One starting point is simply to Google the building’s address (with quotation marks around it for best results), which might turn up reports of prior or outstanding violations. If you’re suspicious about something, it’s also worth checking your local department of buildings or building safety, which will have the certificate for your building (in my city, it’s viewable online).

If you need help with property management, tenant management services, or looking into a property investment – contact CMG Toronto today. The best property management company in Toronto.

So before you move into a rental, if you suspect something’s up, here are some features that are red flags.

1. You’re renting a basement, cellar, or attic

Basement apartments might seem sweet, but watch out—as I learned in my cellar fiasco, unusual often means illegal.

In New York City, in fact, basements are the most common form of an illegal apartment, and cellars and attics may not be far behind. (What’s the difference between “basement” and “cellar” for lower-level spaces? A basement rises at least 50% above street level, while a cellar has the majority of its space below street level, and different laws can apply to each.)

To be declared legal, a basement, cellar, or attic apartment has to meet criteria like having a minimum ceiling height (in New York, it’s 7 feet) and being zoned as living space. So if the space is mostly below street level, if its ceiling seems suspiciously low, or if its windows are tiny, definitely do more research on whether this space is legal to rent as a residence.

2. You’re renting a loft or converted warehouse

Love the industrial vibe of living in a loft or converted warehouse space? You’d better check local zoning ordinances and codes. Many of these former factories weren’t legally converted to residential units, or they aren’t up to snuff in terms of safety and fire codes. So, ask the landlord for a residential Certificate of Occupancy, and beware of lofts where typical residential amenities like bathrooms, plumbing, and electrical seem hacked into the layout in a way that seems less than safe. As the deadly Ghost Ship fire proved, some warehouse conversions are done without regard to fire codes. If living spaces seem crammed in a haphazard manner, if electrical wires are exposed, or if paths to exit are scarce, look elsewhere.

3. You’re renting an in-law suite

In-law suites, also called secondary units, are the common name for self-contained suites in private homes, with a separate entrance, kitchen, and bath. But if you’re considering paying rent to live in such a suite in a stranger’s home, proceed with great caution.

“What we typically find is that in-law suites were never permitted as such, making them illegal apartments,” says Robert Pellegrini, president of the PK Boston law firm. He explains that when homeowners add a new residential unit, they often don’t know they need to get permits for this second dwelling—even if a family member is moving in. So if you’re considering such a unit, make sure to ask to see permits. They may also be required to provide other features such as a separate electric meters and a parking spot.

Colleen Kane has written for Fortune, Money, and other publications and websites.

Need help? Contact the best property management company in Toronto.

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Source: https://www.realtor.com/advice/rent/illegal-rentals/ | 10.12.2017

 

By Matt Christensen | Sep 14, 2017

Landlords wield an awful lot of power over their tenants—and where there’s power, it’s likely to be abused. We’re not saying all landlords are awful, but some sure can get annoying or offensive, or leave you in the lurch. To help you navigate these dicey scenarios, here’s a field guide to the five types of landlords you might encounter. We’ll show you how to deal with their worst behaviors so you can find a way to live happily under their roof.

1. The MIA landlord

You know that landlord who’s so impossible to reach, you wonder if he’s a figment of your imagination? Playing hard to get might work great for him, but tenants often need to get in touch with landlords for all kinds of issues, many of them urgent.

“All landlords, property managers, and building owners should be providing the tenant with emergency phone numbers,” says Denise Supplee, co-founder of SparkRental.com.

But if yours doesn’t—or rarely returns your calls or emails—it might be time to ignore polite decorum and be a squeaky wheel. Call and email daily if you must—it’s annoying, but it will likely get his attention. Or send a certified letter. Or, since you have to send a rent check every month, include a letter, pictures, or other evidence that details your problem with that check. If and when the check gets cashed, you’ll know your landlord received your complaints.

You might be tempted to withhold rent, but that’s rarely a good idea. Doing so can damage your rental payment history and credit score, or even give your landlord cause to evict you. In some states, withholding money is a viable option, but you should set that money aside in an account, because if you go to court and lose, you’ll have to pay it back.

2. The landlord without boundaries

On the opposite end of the spectrum are those landlords who are around way too much. Your landlord might call at all hours—or worse, drop by unannounced.

“A landlord is not permitted to drop by without notice,” says Supplee. That’s true even if he’s rapping on your door because you’re late on rent! In fact, in most places a landlord is required to give you 24 to 48 hours notice before visiting, and those visits are usually kept between the hours of 9 a.m. and 5 p.m.

So if your landlord’s barging in whenever he wants, you’ll want to politely but firmly make those restrictions clear. If you’re uncomfortable with being so direct, try something along the lines of, “I work long hours, so I prefer peace and quiet when I get home.”

If the problem persists, though, you might have to draw a harder line.

“Write down every date and time a landlord violates your privacy and send him a written request to stop,” says Supplee. “If the behavior continues, you may have to contact an attorney to file suit.”

3. The lazy landlord

Whether it’s a leaky faucet or a collapsed beam, your landlord is responsible for arranging and following through on certain repairs. So if he is dragging his feet, you have a few options.

“There’s a little-known tip called ‘repair and deduct,’” says Supplee. “Each state has its own requirements, but generally speaking, if the tenant gets the repair done, he or she can deduct the receipted amount from the rent.”

Thomas Mark, an attorney who specializes in tenant-landlord disputes, explains: “In court, you must show that the landlord knew about the problem and that he failed to repair the problem within a reasonable time.”

You can bolster your case with photos of the flaws, documented repair requests, inspection reports from professionals, and even witnesses in your apartment who can testify on your behalf.

4. The subtly discriminating landlord

Of course, you’d never choose to live under a landlord who’ll discriminate against you because of your race, gender, sexual orientation, or some other factor, but you can’t always tell right away. Some studies have shown that discrimination can manifest in subtle ways, like when landlords show you the laundry room and other facilities when showing you an apartment. Once you’ve moved in, a biased attitude might affect how long it takes them to respond to an email or phone call.

And “discrimination doesn’t have to be overt to be illegal,” says Mark. If a landlord makes you feel uncomfortable or unwelcome, you could have a case. When in doubt, contact the Leadership Conference on Civil and Human Rights to find out about housing discrimination enforcement agencies in your state.

5. The BFF landlord

Being pals with your landlord: What could be better? Don’t get too excited, though, because there’s a reason—several, actually—why it’s risky to do business with friends. For example, what toll will a rent hike take on your friendship? And what about repairs? At first, your landlord buddy might rush to fix your problems, but who’s to say he won’t count on your “understanding” that he can’t get to something right away?

Bottom line: Even if you’re pals, make sure there’s a rental lease in place outlining expectations in terms of rent, repairs, and other sticky issues. If you care about your friendship—and your home—it’s the best way to avoid messy misunderstandings.

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Matt Christensen, who lives in Westlake, OH, has written for Maxim, Cosmopolitan, Men’s Journal, and other publications.

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