Deciding whether to sell or rent out your home in Ontario can be a tough choice, especially in today’s real estate market. With shifting interest rates, evolving housing demand, and changing rental trends, making the right decision requires careful consideration. Whether you're looking to maximize your return on investment or create a steady income stream, here’s what you need to know.
Leasing Your Property: Pros and Cons
Advantages of Renting
✅ Steady Income: Renting can provide a consistent revenue stream, particularly if your rental income covers or exceeds mortgage payments. With Ontario’s average rent at $2,351 as of late 2024, rental properties can be a valuable asset.
✅ Long-Term Value: Holding onto your property allows you to benefit from potential price appreciation, with home values expected to rise 4-6% in 2025.
✅ Flexibility: If market conditions aren’t ideal for selling, leasing gives you time to wait for a better opportunity while still making money.
✅ Tax Benefits: Landlords can deduct expenses such as maintenance, insurance, mortgage interest, and property management fees, making renting financially attractive.
Challenges of Renting
❌ Landlord Responsibilities: Maintenance, repairs, and tenant management fall on your shoulders, which can be time-consuming and stressful.
❌ Vacancy Risks: Rental prices in Ontario have dipped slightly (-6% YoY in late 2024), and with more rental units becoming available, finding quality tenants may take longer.
❌ Property Wear and Tear: Even with responsible tenants, rental properties experience gradual depreciation, requiring ongoing maintenance.
❌ Difficult Evictions: Ontario has strict tenant protections, making it challenging for landlords to evict problem tenants. Unfortunately, eviction is not a quick process—it can take anywhere from 85 to 138 days after an eviction notice is given. If the tenant refuses to vacate and requires removal by the Sheriff’s office, the timeline could stretch to 168 days.
Here’s a general breakdown of the eviction process:
Provide written notice to the tenant
File an application with the Landlord and Tenant Board (LTB) (7-60 days after written notice)
Attend the LTB hearing (typically 56 days after the application is filed)
Receive an eviction order (about 22 days after the hearing)
Enforce the eviction order if necessary (can take up to 30 additional days)
These timelines are approximations, and actual cases may take more or less time. The Landlord and Tenant Board is actively working to improve service standards, but landlords must be prepared for potential delays and legal fees.
Selling in 2025: Is It the Right Time?
Why Selling Might Be a Smart Move
🏡 Market Stability: The Ontario housing market is currently balanced, meaning there’s a fair demand for homes, and prices are not dropping significantly. 💰 Capitalizing on Demand: If your home is in a high-demand area, selling now could yield a strong return, especially with projected price increases of up to 6% this year. 📈 Interest Rate Relief:While mortgage rates remain higher than pre-pandemic levels, the Bank of Canada is expected to lower them further in 2025, potentially increasing buyer demand.
When Selling May Not Be Ideal
🔻 Affordability Issues: Many buyers are still struggling with high costs, which could slow down home sales in certain price ranges. 🔻 Future Price Growth: If your property is in a growing market, holding onto it for a few more years may yield better returns.
Which Option is Best for You?
The choice between selling and renting depends on your financial situation, market trends, and long-term goals. If you need immediate liquidity or want to reinvest, selling might be your best bet. If you prefer a steady income stream and can manage a rental property, leasing could be a lucrative option—though landlords must be aware of Ontario’s tenant-friendly eviction laws.
Not sure what’s best for your situation? Contact me today for expert guidance tailored to your real estate goals. Let’s explore your options together and make the most of Ontario’s evolving market!
📞 Laurita Almeida
📱 289-700-3097
📧 [email protected]
