Hope Street Gets Complaints of Edmonton Landlords Being Squeezed by Tenants
Edmonton rental vacancy rates are increasing, but people who are using property managers haven't felt it as much as those who do not use a management company.
Edmonton, Canada, September 26, 2016 --(PR.com)-- 5 years ago you would never have seen ads offering the first month free, a free TV, or other “signing bonuses” to sign a lease for an Edmonton home. But in the current Edmonton rental market, the tenants have the power and a lot of inventory to choose from. While some landlords are using incentives to win tenants, others are being met with demands for lowered rent by their existing tenants.
At the end of 2015 vacancy rates in Edmonton were around 4.2% and as we near the end of 2016 the numbers are expected to hit 6-8%, depending on property type. That may seem small but it’s roughly 1 out of every 13 rental homes that are sitting empty and if that’s your home, it can be financially devastating.
“That’s one of the main reasons people choose to use an Edmonton property management company instead of managing their own rental properties,” says Shamon Kureshi of Hope Street. “A property management company typically fills their inventory much faster than an owner will on their own.” He’s worked managing properties for a few decades and knows that even though “really bad tenants” get the most recognition, it’s empty houses that really cripple landlords.
The current Edmonton market is still a renters market with many landlords willing to negotiate terms and prices, but things are starting to level. This is welcome news to landlords who are already renting their properties out at rates that are at a breakeven point or even at a loss. “There is a common misperception that landlords pocket thousands of dollars each month but the truth is that many of our home owners are charging less than they are paying out for their mortgage.”
While lower rent prices and lower demand seems like a terrible combination for the Edmonton rental market, it’s not all bad. Higher end homes have also seen a drop in average rent price but the demand for them is up as tenants “move up” and are able to afford larger places for the same budget.
What can you do to fill your rental property faster? Kureshi has some suggestions:
1. Drop the price. At the right price, pretty much anything will rent. However, you need to make sure you take into consideration all of the costs associated with your property so you’re not running yourself into the ground. It’s estimated that the average price of rent in Edmonton has dropped 10-15% in the last 2 years and your pricing should probably reflect that.
2. Work on presentation. A clean house with a well maintained yard will almost always be rented out over one that’s in disarray.
3. Increase your odds. Working with a property management company like Hope Street can greatly increase the number of showings for your property, which increases the odds that the "right" person is going to see it.
Not sure if you want to rent out your place via a property management company or should manage it yourself? Talk to people in your network who have rental properties. They can let you know what issues they have and then you can decide for yourself if they are issues you’ll be able to handle or not. After that, contact a property management company. They’ll be able to let you know what they handle, what they don’t, how much it costs, and then you’ll be able to make the right decision based on your time and financial investments.
Hope Street Property Management serves Edmonton landlords & tenants. Their screening processes ensure you get the right tenants in your property and that you don’t have to take any 3am calls over maintenance issues. Property management is a solution for many Edmonton landlords and might be one for you, too. Call today (780) 540-5199.
At the end of 2015 vacancy rates in Edmonton were around 4.2% and as we near the end of 2016 the numbers are expected to hit 6-8%, depending on property type. That may seem small but it’s roughly 1 out of every 13 rental homes that are sitting empty and if that’s your home, it can be financially devastating.
“That’s one of the main reasons people choose to use an Edmonton property management company instead of managing their own rental properties,” says Shamon Kureshi of Hope Street. “A property management company typically fills their inventory much faster than an owner will on their own.” He’s worked managing properties for a few decades and knows that even though “really bad tenants” get the most recognition, it’s empty houses that really cripple landlords.
The current Edmonton market is still a renters market with many landlords willing to negotiate terms and prices, but things are starting to level. This is welcome news to landlords who are already renting their properties out at rates that are at a breakeven point or even at a loss. “There is a common misperception that landlords pocket thousands of dollars each month but the truth is that many of our home owners are charging less than they are paying out for their mortgage.”
While lower rent prices and lower demand seems like a terrible combination for the Edmonton rental market, it’s not all bad. Higher end homes have also seen a drop in average rent price but the demand for them is up as tenants “move up” and are able to afford larger places for the same budget.
What can you do to fill your rental property faster? Kureshi has some suggestions:
1. Drop the price. At the right price, pretty much anything will rent. However, you need to make sure you take into consideration all of the costs associated with your property so you’re not running yourself into the ground. It’s estimated that the average price of rent in Edmonton has dropped 10-15% in the last 2 years and your pricing should probably reflect that.
2. Work on presentation. A clean house with a well maintained yard will almost always be rented out over one that’s in disarray.
3. Increase your odds. Working with a property management company like Hope Street can greatly increase the number of showings for your property, which increases the odds that the "right" person is going to see it.
Not sure if you want to rent out your place via a property management company or should manage it yourself? Talk to people in your network who have rental properties. They can let you know what issues they have and then you can decide for yourself if they are issues you’ll be able to handle or not. After that, contact a property management company. They’ll be able to let you know what they handle, what they don’t, how much it costs, and then you’ll be able to make the right decision based on your time and financial investments.
Hope Street Property Management serves Edmonton landlords & tenants. Their screening processes ensure you get the right tenants in your property and that you don’t have to take any 3am calls over maintenance issues. Property management is a solution for many Edmonton landlords and might be one for you, too. Call today (780) 540-5199.
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Shamon Kureshi
(780) 540-5199
HopeStreet.ca
(780) 540-5199
HopeStreet.ca
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