The economic crisis throughout 2020 and 2021 has sent Toronto’s rental market into a spiraling downtrend. Rising unemployment rates and the many citywide lockdowns have driven rental demands to record lows. Rental prices are down over 20% since the start of 2020 and there are also more vacancies than ever. This economic crisis has put both tenants and landlords in an exceedingly tough spot.
Jason, one of the many landlords that have responded to our market survey, has voiced his dissatisfaction with the current rental situation. “It’s just too hard to find any good, reliable tenants. Many can’t pay in time, and it’s nearly impossible to evict them during this crisis. Tenants are heavily favored in these legal disputes. And with the prices lower than ever, I might as well just keep it empty for now.” Other landlords in our survey shared the same sentiment as Jason. The pain points of tenants are just as reasonable. Amongst which are price hikes, unclean homes and the lack of assistance from the landlord when an appliance breaks down.
Evidently, there is a huge rental crisis in Toronto. Hence, Mooth.ca, a technology-driven leading integrated online platform for rental transactions and services in Toronto was founded. Mooth has reinvented the outdated and unstable relationship between landlords and tenants. Mooth provides stunning renovated homes with exceptional perks to tenants such as 24/7 professional support, free room change with 7 days of leasing, high quality deep cleaning services, and fast wifi. The deal only gets sweeter for their landlords. Under Mooth’s new rental model, landlords’ risks of property damages and payment defaults by tenants are shifted to Mooth. At the start of each rental month, Mooth will write a cheque to the landlord regardless of whether the home has been rented out. This is a completely revolutionary model in the property management and home rental space.
In the US home leasing market, specialized leasing agencies account for 30% of the market. This number is as high as 80% in Japan. Meanwhile, Canada is still in its infancy stage with huge upside potential. Mooth’s Co-founder and CEO, Jack Zhu, believes that there is a lot of room for growth and innovation in this space. He says, “Our goal is to transform the outdated rental industry with our technology-driven leading integrated online platform. Currently, most rental intermediaries consist of self-employed agents, we are here to revolutionize this with our new C2B2C (Customer-to-Business-to-Customer) model. This will center the company and lead to a more uniformed rental system with renovated and upgraded homes. We have also built a business intelligence system that collects user data and, with the help of artificial intelligence, can make recommendations to customers based on pricing, location, and type of home. Eventually, our system will facilitate customers (both landlords and tenants) to conduct self-service lease contracting. Our ultimate goal is to make finding your dream home as simple and as enjoyable as looking through a fancy hotel catalogue for your vacation getaway.”