5 tips to stay competitive during a declining rental market
The Rental Market Weakened
Toronto Metro’s rental market weakened in February 2025, both nominally and after seasonal adjustment. The months-of-inventory indicator, reflecting market balance, was 41% above the 10-year average—one of the weakest readings in 14 years. Historically, the rental market strengthens between January and August.
*Data by RARE Real Estate Inc.
My take? It may be too soon to tell. While reporting does come from economists, it then often gets spun by the media to create fear mongering (ahem, I mean buzz). Rentals may ultimately take only a small hit on rates, but either way, it’s time to hunker down and get competitive to prevent vacancies and mitigate risk.
Rent Prices Fell Further Below 2022 Levels
In February 2025, the average rent in Toronto Metro declined to $2,793, down 4.8% year-over-year and 4.6% below 2022 levels. Rent prices typically rise between January and August.
*Data by RARE Real Estate Inc.
Rental prices on a continued decline with inventory on a steady rise.
How do you stay ahead of the curve to minimize vacancies and mitigate against cashflow hiccups
Feeling hopeless about vacancies or seeing rental inventory rising? Don’t fret! There are several steps you can take to ensure that you secure a great tenant at a strong price without vacancy gaps.
Get creative with bonus offerings. There are many offerings you can make that are cost effective for you, while still feeling like a SPECIAL BONUS for a tenant. We include a TV/internet package for our tenants. In duplex situations, it works out to be a $60/month cost to us per unit, but goes a long way with tenants. Other ideas:
Include utilities (with a clause in your lease that gives you the right to re-evaluate if usage is too high)
Offer complimentary snow shovelling (this is about a $50/month cost to you)
For a longer lease commitment, offer to have the unit painted or upgrade appliances
Professional photography is a must. In a saturated market, your listing needs to stand out. DIY photos will not do. Hire a professional photographer. There are phenomenal companies (like Code Blue Media) that offer rental listing photo packages for as low as $250. If your current tenant has nice furniture, offer them a $500 gift card and rent a one-day portable storage cube ($300) to do a partial move-out and then photograph the unit (it’s $5,000 less than staging, and having a staged unit goes a long way!).
If the unit is vacant, make the effort to stage it. Remember you can use these photos for years to come.
Make it easy to show. Throw away the keys in favour of a coded entry system, and ensure the unit is easy to access. This means minimal notice for showings and unlimited timeframes. If you have a current tenant, get creative; offer to put them up at a hotel for a few nights, offer a gift card for dining out during showings etc. Again, the $400 that you’ll spend will be well worth the pay-off when you secure a long lease at a strong price point, on a fast timeline.
Consider your deal breakers. Typically have a pet-free unit? It might be time to reconsider. Less barriers to entry means more interest. This doesn’t mean sacrificing on the quality of tenant prospects, but you may want to reconsider restrictions like pets. Non-negotiables that shouldn’t change: smoking, max occupancy, noise rules.
Commit to updates and improvements. Sky is the limit here, so pull up a spreadsheet and calculate pros and cons. This could mean updating appliances, installing laundry in the unit, or cosmetic updates like kitchen hardware, and light fixtures. Go the extra mile to make the space inviting and comfortable.
