By ERIKA TUSTIN 


Wednesday, November 27, 2002 – Print Edition, Page A25

Toronto tenants are in a unique position to barter with potential landlords for free parking, appliances and rent, all because of a surge in the city's vacancy rate.

The rate rose to 2.5 per cent from 0.9 per cent a year ago, according to the Canadian Mortgage and Housing Corp.

Unaccustomed to having empty properties, landlords have been willing to forgo the usual hefty deposits and long list of references to fill those spaces.

As one renter recently found out, some landlords are giving discounts or waiving or reducing the last month's rent, held as a deposit.

"Fear of the alternative is causing existing landlords to become more competitive," said senior market analyst Ted Tsiakopoulos. "This will have a more positive than negative impact on units."

Lower interest rates have provoked many former tenants to buy condos or homes, leaving landlords looking to fill their properties, CMHC says.

Burke Christian grew tired of paying $800 a month to rent a bachelor apartment, so he decided to buy a one bedroom condo unit at Dundas and Kipling Streets last June. For $14 more a month, he said, he is getting more space and, ultimately, saving money.

Another reason for the surge in the vacancy rate is that more young people are choosing to remain at home longer or double up with friends in smaller apartments to save money, Mr. Tsiakopoulos said.

Paul York, a tenant activist with the Greater Toronto Tenants' Association, said the vacancy rate has helped stabilize the rental market but the cost of renting is set at a very high rate.

The vacancies, he said, are a direct result of past increases in rent. Toronto landlords are fighting to keep these market-rate apartments filled.

But future increases in rent will hit the rent-controlled units.

"The theory is that the rents will come down but [the vacancy rate is] still not high enough," Mr. York said.

"They've reached a peak now and future increases will be specific to rent-control tenants," he said.