According to the Toronto Real Estate Board, Mississauga condos accounted for 540 of the 566 total transactions in Peel Region for the first 3 months of the year. The city of Brampton mustered only 25 total leases. Caledon which is not known for condos managed only one lease.
Of the 540 Mississauga condo rental transactions, 279 involved one bedroom condos at the average lease rate of $1,394. Two bedroom condos were the second most popular among leases totaling 242 transactions at a rate of $1680. There were 1,160 total condos listed at that time making for a list to lease ratio of 47%.
By contrast the city of Toronto totaled 3339 condo leases during the same period. One bedroom condos went for an average of $1,647 while 2 bedrooms brought in on average $2,250. Toronto landlords listed 6863 condos making for a list to lease ratio of 49%.
Some key numbers reported by TREB in their First Quarter Market Report was the GTA saw a 13% increase on a year over year basis for condominiums rented. The 1 bedroom average monthly rent for condos was up almost 4% at $1,597 when compared to Q1 of 2012.
According to TREB, the 2012 Fall Rental Market Survey indicated that Peel contributed 22.7% or the GTA condo rental transactions while only having a vacancy rate of 0.6%. On the other hand Toronto accounts for 23.6% market share while having more than doubled the vacancy rate of Peel at 1.4%.
What does this mean for a Mississauga condo investor?
The numbers don’t lie. There are lots of people trying to make money as indicated by the share volume of listed leases. Even though the lease to rent ratio is sub 50%, landlords who do lease their condos are making more money.
This is can be attributed to a couple factors. Perhaps renters are looking for nicer accommodations with modern renovations. Some condo owners may need to invest some money to make their condo more desirable.
Another factor in some condos not being able to get a lease is location. Certain locations are attractive because of amenities which are nearby which tenants want. Access to public transit and conveniences are a big draw for people. Square One condos are a prime example of this and condo fees can be higher than in other parts of Mississauga.
What can be the future for Mississauga Condo renting?
In my opinion the trend probably won’t change over the next year. There seems to be no shortage of condos on the market right now. The condos which are competitively priced with respect to location, size and have the fit and finish tenants are looking for will have no problems attracting business.
On the other hand landlords who expect top dollar for run down condos will eventually have to make a decision to get out of the business or spend the money to make their potential tenants happy.