Rental Markets Still Tough Despite National Resale Activity Improvement
"Increased vacancies in Calgary are forcing Landlords to improve their suites, advertise harder, and lower their rents" says Dave Le Couilliard of Hopestreet Property Management.
"We are seeing suites rent for 15% less than they used to." Says Dave. "But that's still a lot better than paying for the mortgage yourself" he is quick to point out.
While national resale activity rose to 13.3% above July levels (using seasonally adjusted numbers provided by CREA - The Canadian Real Estate Association) there still remains a strong case for renting out properties that can't be sold in Calgary" says Le Couilliard.
"Even with an increase in sales there are still many owners who can't get their money out of their properties and choose to rent them until the market improves to 2007 levels."
Not surprisingly with the sputtering economy still limping to get back on track it is a buyer's market and by extension a renter's market.
The vacancy rates are about double from last year and according to the CMHC the rents are 4% lower. In a nut shell that means it's a lot harder to rent out a property than it used to be. Owners that want to rent their units quickly need to improve the unit and advertise harder to attract the tenants they used to be able to turn away by the droves.
Clients of Hope Street Property Management are advised that the best approach in this market is to drop the rent, shorten the lease, and look into including utilities in the pricing. The shortened lease is a key for districts that are close to major construction projects where migratory workers will only stay in the city for length of a project; which is often less than a full year lease.
Including utilities in a rental term provides peace of mind to the renter that they will know exactly their costs each month. This small bonus over a house where they don't know the bills could be the little thing that insights them to rent one unit over another. It's not too much of a risk for a landlord either. Landlords usually have the history of their property and can make a monthly fee that can be added to the rent accordingly.
Over and above improving the actual suite any one or a combination of the three can work to improve the rent-ability of a suite. Of course, there are also a wide variety of websites that owners should look into listing their sites on.
"We are seeing suites rent for 15% less than they used to." Says Dave. "But that's still a lot better than paying for the mortgage yourself" he is quick to point out.
While national resale activity rose to 13.3% above July levels (using seasonally adjusted numbers provided by CREA - The Canadian Real Estate Association) there still remains a strong case for renting out properties that can't be sold in Calgary" says Le Couilliard.
"Even with an increase in sales there are still many owners who can't get their money out of their properties and choose to rent them until the market improves to 2007 levels."
Not surprisingly with the sputtering economy still limping to get back on track it is a buyer's market and by extension a renter's market.
The vacancy rates are about double from last year and according to the CMHC the rents are 4% lower. In a nut shell that means it's a lot harder to rent out a property than it used to be. Owners that want to rent their units quickly need to improve the unit and advertise harder to attract the tenants they used to be able to turn away by the droves.
Clients of Hope Street Property Management are advised that the best approach in this market is to drop the rent, shorten the lease, and look into including utilities in the pricing. The shortened lease is a key for districts that are close to major construction projects where migratory workers will only stay in the city for length of a project; which is often less than a full year lease.
Including utilities in a rental term provides peace of mind to the renter that they will know exactly their costs each month. This small bonus over a house where they don't know the bills could be the little thing that insights them to rent one unit over another. It's not too much of a risk for a landlord either. Landlords usually have the history of their property and can make a monthly fee that can be added to the rent accordingly.
Over and above improving the actual suite any one or a combination of the three can work to improve the rent-ability of a suite. Of course, there are also a wide variety of websites that owners should look into listing their sites on.
