Buying an Investment Property in Toronto? Here's What Actually Rents.

Buying an investment property isn't just about finding a great condo—it's about buying a property that tenants want.

Every year I speak with investors who ask the same question:

"What should I buy if I want the best rental return?"

The answer isn't always the cheapest property or the newest building.

The best investment is the one that attracts the largest pool of qualified tenants, minimizes vacancy, and gives you flexibility as the market changes.

After helping hundreds of executives, film professionals, relocating families, and corporate clients find furnished homes across Toronto, I've noticed clear patterns in what renters are looking for.

Here are the features I recommend investors prioritize before purchasing.


1. Buy the Neighbourhood First

A great property in an average location rarely outperforms an average property in a great neighbourhood.

Some of Toronto's strongest rental neighbourhoods consistently attract executive and professional tenants because they offer walkability, transit, restaurants, parks, and lifestyle.

Some of my favourite neighbourhoods include:

  • Queen West
  • Trinity Bellwoods
  • Roncesvalles
  • High Park
  • Leslieville
  • The Beaches
  • King West
  • Liberty Village
  • Yorkville
  • St. Lawrence Market
  • Distillery District

These neighbourhoods continue attracting professionals, corporate relocations, healthcare workers, and film industry clients throughout the year.


2. Parking Matters More Than You Think

Many investors underestimate the value of parking.

While not every tenant owns a vehicle, parking significantly expands your potential tenant pool.

Parking is especially valuable for:

  • Executives relocating to Toronto
  • Families
  • Film industry professionals
  • Medical professionals
  • Tenants staying several months

A parking space can often rent a property faster and justify a higher rental rate.

3. Outdoor Space Is a Premium Feature

Since the pandemic, outdoor space has become one of the most requested amenities.

Buyers should look for:

  • Large balconies
  • Rooftop terraces
  • Private patios
  • Ground-floor gardens
  • BBQ-friendly buildings

Outdoor living creates a lifestyle that tenants are willing to pay for.


4. Views Sell

If you're choosing between two similar units, buy the one with the better view.

Higher floors with:

  • Skyline views
  • Lake views
  • Park views
  • Sunset exposure

typically photograph better, generate more online interest, and command stronger rents.

Natural light is equally important.

Bright corner suites almost always outperform darker interior units.


5. Size Matters

Many new Toronto condos are getting smaller.

While compact units can produce strong percentage returns, larger suites often attract longer-term, higher-quality tenants.

Ideal condo sizes include:

1 Bedroom

  • 550–700 sq. ft.

1 Bedroom + Den

  • 650–800 sq. ft.

2 Bedroom

  • 800–1,100 sq. ft.

3 Bedroom

  • 1,100+ sq. ft.

Layouts matter just as much as square footage.

Avoid awkward floor plans with excessive hallways or unusable space.


6. Low Maintenance Fees Protect Your Cash Flow

High maintenance fees reduce profitability.

When evaluating a property, look for:

  • Stable maintenance fee history
  • Well-managed reserve fund
  • No major special assessments
  • Healthy financial statements
  • Good building management

A lower monthly carrying cost gives you more flexibility if market rents soften.


7. Choose Buildings With Flexible Rental Policies

This is one of the biggest mistakes investors make.

Some condominium corporations have strict minimum lease terms that can limit your options.

Buildings that permit 30-day minimum rentals offer much greater flexibility.

They allow owners to accommodate:

  • Executive relocations
  • Film and television productions
  • Insurance displacement clients
  • Corporate housing
  • Temporary work assignments
  • Families renovating their homes

This flexibility often translates into stronger rental income and reduced vacancy.

Always review the condominium's declaration and rules before purchasing.


8. Think About Who Your Tenant Will Be

Every property attracts a different type of renter.

Ask yourself:

Who would want to live here?

Examples include:

  • Film professionals
  • Corporate executives
  • Healthcare workers
  • Couples relocating to Toronto
  • Families
  • International professionals
  • Digital professionals working remotely

Buying with a specific tenant profile in mind makes marketing much easier.


9. Furnished Can Be a Competitive Advantage

Not every property should be furnished.

However, in desirable neighbourhoods with flexible lease terms, furnishing can significantly increase rental income.

Luxury furnished properties often appeal to:

  • Executive relocations
  • Insurance housing
  • Film and television clients
  • Professionals on temporary assignments

The key is offering hotel-quality furnishings—not simply filling the property with furniture.


10. Work With Someone Who Understands the Rental Market

Many investors buy based solely on resale potential.

I encourage clients to consider both resale value and rental performance.

Before purchasing, ask:

  • What does this property rent for today?
  • How long do similar units stay on the market?
  • What type of tenant is renting here?
  • Is there demand for furnished rentals?
  • Are there upcoming developments that could increase competition?
  • Does the building allow flexible lease terms?

Having these answers before you buy can prevent expensive mistakes later.


Final Thoughts

A successful investment property isn't just about appreciation—it's about consistent cash flow, strong tenant demand, and minimizing vacancy.

The best-performing properties typically combine:

✔ Prime, walkable neighbourhoods
✔ Parking
✔ Outdoor space
✔ Higher floors with natural light and views
✔ Functional layouts with generous square footage
✔ Low, stable maintenance fees
✔ Buildings with flexible rental policies
✔ Strong appeal to executive and professional tenants

These are the properties that continue to perform through changing market conditions and deliver stronger long-term returns.



Thinking About Buying an Investment Property?

At Urban Dwell Luxury Rentals, we help investors evaluate properties before they purchase by analyzing rental demand, neighbourhood trends, tenant demographics, and income potential.

Buying the right property from the start can save years of frustration—and generate significantly stronger returns.

If you're considering an investment purchase, let's talk before you buy. Together, we'll identify the properties that not only appreciate in value but also perform exceptionally well as rentals.