The basic math of the Calgary residential rental market is that when oil left so did tenants. In the last four years I’ve seen rental rates drop by an average of 20%. (less on low-end properties and more on high-end properties.) Tenants have more choices than they know what to do with. Listings are seeing 50 - 60 viewings PER DAY and only producing 1 - 3 inquiries per week.
Regardless of the market tenants are looking for three things.
- The location of the property.
- The physical space. Number of bedrooms, bathrooms, age of appliances etc.
- How they think the relationship will be with the landlord.
The law of substitution states that if all else is equal a tenant will choose the lease expensive option. It means rates drop.
For a solution you probably won’t change the location of your property, and can likely only afford to make minor changes to your physical space so your best investment is in the relationship with the tenant.
In a word, everyone likes to feel like you care. And they may pick you over the other property because of it.
As we’ve focused on the people-end of our business we’ve seen our placement rates increase and we have secured better, longer-term tenants that we actually like working with.
As landlords we can’t fix the market, but we can go back to basics to secure the best possible tenant at the best possible rate.
Even in a tough market you can still secure great tenants for your rentals and it doesn't have to cost you an arm and a leg.
