The Altadore market is soft and softening further. Currently there are 84 listings for sale in Altadore excluding any and all condominiums and over the past month or so, there have only been two sales of a two or three storey home priced between 695 to 840k$. Currently there are 25 active listings in the same price range - so it's basically a race to the bottom.
The probability of a sale given these numbers as we see it puts the cards in a buyer's hands and they will be brutal with offers as they have choices. The market is projected to decline by a further 3 to 5% over the next 12 months according to the chief economist at the Real Estate Board. Altadore, in our opinion, will see a further decline if the number of active listings does not drop significantly. Hence renting is a serious option for many property owners.
The lead time to rent depends on the time of year… we are entering the slower months so a rental at this juncture will typically take 2-3 weeks however once mid October arrives and especially the period of November through to January, that will extend to as long as 4 plus weeks to find a suitable qualified renter.
CitySearch has an uncanny ability to find great renters faster than the competition at any time of year.
Most rentals of single-family homes and duplex in Altadore fall in the range of $2600 and $4000 per month in Altadore, and the neighboring communities.
The tenant is responsible for the utilities and exterior upkeep such as routine lawn care, weeding of garden beds and snow removal to comply with local standards and bylaw requirements, light maintenance such as replacing expired lightbulbs and tenants’ insurance for its contents and liability. Property owners are responsible for city property taxes, rented dwelling insurance and required maintenance…. and property management fees.
The market for a furnished home is low, as such there would be marginal premiums, and it would take massively longer to find a suitable long-term tenant.
There is no spreadsheet for determining return on investment; the bottom-line rents typically do not cover the cost of ownership, meaning if you bought a home for $775K the mortgage on the full amount would be about $3875 per month. Once you add in property taxes of about $500 a month, maintenance costs as time passes, and the management fees, this would bring the "cost" to about $5000 a month simply to break even. This is why investors are not currently active in our marketplace as the returns are simply not there.
There is always a risk for someone not paying rent, however Citysearch goes through a very stringent process and eliminates the vast majority of these offenders - there is obviously no way to predict if someone will lose their job and for situations like marital strife, however our track record, background checks and screening process attracts quality tenants versus placing ‘anyone’ in the property.