August 1st, 2013
The Flood and University Students Returning May Lead to Higher Rents
According to report in the Calgary Herald the residential property vacancy rate is so low landlords have stopped aggressively advertising because even a small ad brings in a flood of potential tenants.
The competition between tenants looking for a nice rental unit could become even more competitive soon:
1. Many buildings remain unlivable after the flood
2. University students are returning soon to start classes and they need off-campus housing
One landlord husband and wife team said the number of applicants they are receiving is overwhelming.
Tammy Panchuk and her husband own forty rentals in Calgary.
While other areas across the country such as Barrie, Ontario have landlords desperately seeking qualified tenants things are very different in Calgary.
With no vacancies and so much demand they now only put an ad up on one website instead of many.
Panchuk is also a Calgary real estate agent and said the Calgary landlords and investors she deals with are all full with few vacancies. She says if there is an opening it gets filled fast.
Many universities such as Mount Royal and the University of Calgary and SAIT believe the housing crunch is going to have a serious effect on students looking for off-campus housing.
The Vice-president of the Mount Royal University student union, Tristan Smyth, believes the flood will lead to higher rents and less vacancies.
Mayor Naheed Nenshi also expects a worsening rental market in September, and even predicted this week that the rental vacancy rate could come close to zero because of last month’s big flood.
To Discuss This And Other Landlord and Tenant Issues Go to the Free Alberta Landlord Forum
Tags: Vacancy Rate