How Much Should Newmarket Landlords Charge For Rent ? And Should Newmarket Landlords Include Utilities?
Don’t Be Ripped Off By Tenants Wanting To Trick You Into Below Market Rent and Inclusive of Utilities!
Many landlords who have invested in Newmarket rental properties are excited about this great opportunity. After all Newmarket, Ontario is a growing place with real estate prices rising fast. York region experienced a house price rise of over 14% from 2014 to 2015 and Newmarket is one of the fastest growing areas in York Region. We have so many advantages for people moving here. Newmarket has lots of offer including:
1. Great Shopping
There is a ton of great shopping Newmarket. You don’t ever need to leave to find what you want. For groceries we have Metro, Food Basics, No Frill, Superstore, Wallmart and Costco. If you are into organic food we have the very popular Nature’s Emporeum.
2. Good Access To Toronto
We have easy access to the 404 highway. And you can always take Yonge St., Bathurst or even Woodbine or Jane St. to Toronto. We also have fast access to high 400. Newmarket is a great transportation hub.
3. Lots of Infrastructure Investment
Have you seen Davis Drive these days? It’s awesome. And there is more investment in the hospital, court house and on Yonge St.
4. Lots of sports, parks, and green space
Newmarket is known for our sports and green spaces. Check out Richardson Park, it’s huge and full of family friendly fun.
5. Friendly People
We are growing area, but still with small town friendliness.
6. Reasonable real estate prices compared to other areas
While Newmarket real estate prices are rising (including rent) we are still very reasonable compared to many other areas, even in the GTA.
More and more people want to live in Newmarket. This has led to lots of population and economic growth. lt also means we have seen lots of residential real estate investors putting their money into Newmarket rental properties and leading to large price gains for Newmarket rental properties.
And why not?
Rents are healthy and rising in Newmarket, and there is a large and growing group of excellent tenants who want to live here.
Even people who work in Toronto are looking to Newmarket for the great shopping, easy access to Toronto, the improvements going on, the green spaces, and the friendly community.
Newmarket is growing, but it still has that ‘small town friendly’ community that’s great for families. Newmarket is a terrific place to invest in.
1. How much should landlords charge for rent in Newmarket, Ontario?
With purchase prices rising in Newmarket, rents are rising too! Investors need to cover their mortgages (and hopefully get some cash flow to cover repairs and maintenance costs.)
So what are experienced and successful landlords charging for rent (and getting from qualified tenants)?
(a) Basement Unit in your own house
What is a fair rent for renting out your basement apartment in Newmarket? At least $900 to $1000+/month (tenant pays for utilities)
(b) Upper Unit in a duplex
What is a fair rent for renting out? Normal rates are $1500 to $1600 +/month for 3 bedrooms (tenant pays for utilities)
(c) Lower Unit in a duplex
What is a fair rent for renting out? At least $900 to $1000/ month + (tenant pays for utilities)
(d) Single Family Home
What is a fair rent for renting out? $2000 to $2500+/month (tenant pays for utilities)
What is a fair rent for renting out? $600 to $700/month (usually the house owner will pay for utilities)
2. Should Newmarket landlords include utilities with rent?
Many new landlords believe renting ‘inclusive’ of utilities is the smart way to go. After all, they think, this means you only need to get one cheque per month and it makes being a landlord simpler.
This is 100% wrong!
Why Newmarket landlords should never rent out inclusive of utilities (make your tenants pay for what they use!)
Here are just some of the reasons experienced and successful landlords stay:
(a) Utility rates are always increasing
You have no control of your costs. If you are paying for power you never know how much is will go up later.
(b) Tenants WILL abuse what they don’t pay for
They will. It happens all the time.
If you rent inclusive experienced landlords know you will face tenants who open windows in winter while the furnace blasts on, and open windows in summer while the air conditioners blast on.
And if you ever have to evict a tenant they can easily abuse the utilities to ‘punish you’ and ‘get revenge’ against you.
For example, you serve them an N4 for an eviction for non-payment of rent. The Landlord and Tenant Board process is very slow (as you can see from the Ontario Landlords Association post about the need to fix the LTB process) and while the process is going on the tenants can add up your bills by wasting water and power.
(c) It’s Now Common For Tenants To Pay For What They Use in Newmarket
There are lots of experienced and successful (and wealthy!) landlords in Newmarket and they make sure tenants pay for what they use! It’s not complicated and experienced and successful landlords make sure tenants pay for what they use.
3. Is it a good idea to use a Realtor/Real Estate Agent to rent my property out?
Many new landlords think hiring a Realtor or Real Estate Agent to find tenants and rent out your place is the smart way to go.
It’s not. In fact, using a real estate agent can be a recipe for disaster!
Experienced Newmarket landlords have seen the same real estate agents rent out properties for years…and they often rent out to bad tenants! In fact, we’ve seen lots of landlords/residential property investors sell their rentals in Newmarket because the real estate agent put in bad tenants!
If they do rent out to bad tenants, you are stuck with them and the real estate agent won’t take any responsibility. We recommend you find your own tenants. And if you do get a real estate agent who wants to find tenants for you ask them if they will ‘guarantee the tenants’ for a year. This means if the tenants don’t pay, do damages or break the lease, the real estate agent found them will be responsible. How many will agree to do it?
If you want to find your own tenants you can join the Ontario Landlords Association and get all the documents you need to succeed. You also get a great deal on running your own tenant credit checks. They are easy to run from your own home computer.
4. What are some other challenges Newmarket Landlords face when renting to tenants?
First, you need to screen very carefully. While there are a lot of great tenants in Newmarket there are also people out there who will make your life miserable if you rent to them. Make sure you always run a credit check before signing a lease with anyone.
A second challenge is dealing with tenants who are demanding and picky. These are people who want to put a lot of pressure on you before renting your property.
For example, the demand you re-paint the property a colour they like. Or they make excuses and try to negotiate paying $100 more in rent but the landlord will pay for the utilities (ask yourself why they want to do this). These types of tenants know you want to rent out the property and will try to pressure you into doing things you shouldn’t fall for.
Experienced and successful landlords tell these type of tenants to go look somewhere else (and they always say “Oh, I have other places to look at!” Sure, they do, it’s all part of their game). Don’t fall for these tricks. If the tenant is this difficult and picky before renting your property, imagine what they will be like once they move in(!)
Newmarket Landlords how much are you charging for rent? Make sure you don’t under-sell yourself and your property. Follow the market and rents are going up. Also, make sure you get your tenants to pay for their own usage of utilities.