Navigating Ottawa's Rental Market: A Guide to Expectations, Realtors, and Strong Applications

Sep 27

We spoke with Charlene Weber to discuss everything today’s renters in Ottawa need to know about the rental market, including how to handle a low credit score, impress landlords, and the perfect timeline for finding homes and condos that have just hit the market.

The Ottawa Rental Market Overview (August 1, 2023 - September 25, 2023)

The demand for rental properties in Ottawa has reached an all-time high, resulting in a surge in rental rates across various neighbourhoods. From Downtown to Orleans, the market is highly competitive, with properties being rented in under two weeks on average.

Downtown & Surrounding Areas:

1 Bed with Parking: $2,398 (range: $2,200-2,900)
2 Bed with Parking: $2,731 (range: $2,300-3,500)
Average Days on Market (DOM): 11 days

Kanata:

Townhome (3-4 Bedrooms): $2,565 (range: $2,350-3,100)
Detached Home (3-5 Bedrooms): $3,267 (range: $2,700-4,900)
Average DOM: 13 days

Barrhaven & Riverside South:

Townhome (3-4 Bedrooms): $2,575 (range: $2,350-2,950)
Detached Home (3-5 Bedrooms): $3,100 (range: $2,500-3,800)
Average DOM: 11 days

Orleans:

Townhome (2-3 Bedrooms): $2,590 (range: $2,300-2,980)
Detached Home (3-4 Bedrooms): $2,893 (range: $2,350-3,500)
Average DOM: 14 days

How Can a Realtor Help You in Your Search?

In this fast-paced market, having a knowledgeable and resourceful realtor by your side can make all the difference. Realtors have access to all listings on MLS, allowing them to set you up on an automated search portal. You'll be notified as soon as a new listing matching your criteria hits the market, giving you a competitive edge. Plus, your realtor can coordinate all showings, saving you from the hassle of reaching out to multiple property managers and landlords.

And let's be honest, it's better than sending those "Is this still available?" messages on Facebook Marketplace!

Tips for Successful Renting

Start Early: Begin your search no later than 60 days before your intended move-in date. Most properties are listed around this time, as it aligns with the minimum notice period required in Ontario to vacate the property.
Realtor Involvement: Inform your realtor even before the 60-day mark. This allows them to set up a search and get your paperwork ready, ensuring you can act swiftly in this competitive market.
Know Your Budget: Understanding your budget is crucial in a competitive market. Consider not only the rental amount but also additional costs such as utilities, parking, tenant insurance, and additional parking if required. Knowing your budget beforehand ensures you focus on properties that align with your financial goals.
Be Flexible, But Know Your Non-Negotiables: Flexibility is key in a tight rental market, but it's equally important to know your non-negotiables. Identify the features or aspects of a property that are essential for your comfort and well-being. This clarity will help you make decisions faster and avoid wasting time on properties that don't meet your core criteria.

Improving Your Application with Low Credit

In a competitive rental market, having a less-than-perfect credit score can be a challenge, but it's not an insurmountable one. Here are strategic ways to enhance your rental application even if you have low credit:

Provide a Co-Signer: If possible, consider adding a co-signer to your application. A co-signer is someone with a stronger financial standing who agrees to take responsibility for the lease if you're unable to meet the obligations. This reassures landlords and can offset concerns about your credit history.
Offer a Higher Deposit: One way to instill confidence in landlords is by offering a higher security deposit. This upfront payment acts as a financial cushion for the landlord, providing reassurance in case of any missed payments or damages. Be prepared to negotiate this with the landlord during the application process.
Submit a Rental Reference: If you have a positive rental history, ensure to highlight it. Obtain a reference letter from a previous landlord emphasizing your reliability as a tenant. This can be a powerful tool to counterbalance a less-than-ideal credit score.
Share Your Story: Sometimes, circumstances beyond your control may have contributed to a lower credit score. Be honest and transparent about your situation in your application. If there were specific challenges that impacted your credit, explain them and highlight steps you've taken to address and rectify the issues.

What Do Landlords Look for in an Application?

Landlords carefully review applications and supporting documents. Here's what you need to prepare:

Application: Include all applicants and occupants, with detailed employment history and personal references.
Supporting Documents: Proof of income (pay stubs, employer letter), valid photo ID, and a full credit score report.
Landlord Due Diligence: Expect reference calls to your current and previous landlords, verification of employment, and contact with personal references. Give your references a heads-up!