A lot of downsizers I meet are interested in exploring rental the market as an option when they sell their home. That way they can use the equity in their home to travel, gift, invest or simply as funds to live on for their next chapter in life.
When we talk about rentals in the GTA I think it’s really important to understand what the rental market is really like. Of course, some people haven’t rented since college; and things may have changed a lot!
What types of rentals are there?
So there are several types of rentals:
- seniors apartments
- traditional, purpose-built apartment buildings
- private rentals from small landlords
- retirement homes
- independent apartments with full kitchens generally built by the retirement community developers, like Chartwell or Amica.
What isn't available (generally) in Ontario
In the US, unlike Canada there are lots of gated 'retirement' communities. If you're looking for that type of rental here, they simply don't exist, why? in Ontario, the Ontario human rights code prohibits discrimination in housing. So you simply cannot restrict housing stock by age or demographic.
Now there are senior apartment/retirement complexes around; but in the GTA these are generally made available to lower income seniors, so they are usually either not for profit communities or rent geared to income properties, both generally have long wait lists - I've heard 10 years or more!
What you can find - and the pros and cons of each
1. Traditional (purpose built) rental apartments. There are buildings that tend to attract retirees, for example in Guildwood there are two rental buildings with large suites on Livingston Rd, and I just discovered a lovely low rise rental community in Whitby, which even has on site services geared to seniors.
Pros of renting a traditional apartment: The main one is security of tenancy. That means you don’t have to move unless you want to - in Ontario a year lease converts automatically to a month to month.
Cons of renting a traditional apartment: the downside to many traditional apartments is that you may not have things like en-suite laundry or a dishwasher in your apartment, or underground parking or amenities like a gym or pool.
2. Private condo rental from a small landlord. With a private rental, the landlord pays for the condo maintenance fee & property taxes. The renter is responsible for rent and any utilities that are not covered in the monthly condo maintenance.
Pros of renting privately: These type of properties can be attractive because the property features tend to have more luxurious features, like walk-in closets, en-suite laundry, lovely building amenities, underground parking, and possibly a social calendar of activities
Cons of renting privately: There are many condo buildings that attract retirees, however, they tend to be owner occupied, and you may not find many suites for rent. If the owner sells, you will need to move. In some cases there may be lots of competition for private rentals. Landlords tend to be very cautious in Ontario and you may find the process renting privately lengthy.
You may be surprised there’s a lot of paperwork required (especially for a private rental with realtors involved) it’s good to know that upfront so you can be prepared.
3. Retirement homes: These are the typical private retirement residences run by companies like Chartwell, Revera or Amica. As opposed to long-term care, these rentals provide private apartments (generally with kitchenettes) and residents dine communally in a dining room. Other services like activities, entertainment, on site PSW's and medical staff, etc. are included either in the rent or an additional pay for services.
Pros of renting in a retirement home: most facilities have services for their residents to age in place; newer places have independent suites where you can cook for yourself, but still be part of the social community & have access to services. Right up to places with memory care and assisted living.
Cons of renting in a retirement home: it's expensive
Not all realtors help with rentals
I have had tenant clients who assume the realtor that sold their home will help them find a rental. That's not always the case, so rather than find yourself in a jam, ask about that up front!
Also, not all realtors have helped someone retired rent - so get someone who can make the process as easy as possible and knows how to craft a rental offer that will be successful.
Additionally, I have visited and have relationships with many retirement homes, so I'm happy to arrange a visit to those, too!
Pro tip: Do your research 6 months before you sell
If renting is on your wish list, I highly recommend that you sit down about six months out from selling your house and see what’s available in your desired area. Find out what the cost of renting is, check out different floorplans and layouts, or check out how many private rentals come up in the area you would like to live.
Ask an expert
Questions? Call me to have a chat at 416-562-5002
