Experienced and Successful Edmonton Landlords Know a Challenging Economic Climate Makes Tenant Screening, Including Credit Checks, More Important Than Ever. Protect your Rental Property!
The news report from the CBC was about the Edmonton residential property market. It had the headline saying there were Sweet Deals for Renters in Edmonton. The report explained that due to rising vacancy rates rents in Edmonton are declining. Not only that, but some landlords are even offering special incentives to attract potential tenants and get them to fill their rental property.
Higher Vacancy Rates And Lots of Choices For Tenants
The CBC called it a perfect storm for renters in Edmonton. The local economy has been rocked by a combination of economic forces. This includes lower oil prices and a lot of new rental properties being completed and creating a large supply of choices for renters. These economic forces have led vacancy rates to rise from 2.4% in the Spring of 2015 to 4.2% in the Fall of 2015.
You see when oil prices dropped there were less employment opportunities in our city. This means there was less net migration into our city from other provinces.
For years Alberta was a job creator and along with low taxes it led people from all over the country to come here. Not only across Canada, but people around the world were eager to come and settle down in Alberta.
Things have now changed with less people coming here, and also due to job losses there are many tenants who are leaving Alberta. BC landlords and Ontario landlords have noticed they are getting far more qualified tenants now compared to before. Many of these tenants used to work in Alberta and rent here and now have left for other employment opportunities.
Lots of New Rental Properties Being Built
When the economy was strong not that long ago many builders wanted to take advantage of the growing demand for rental properties. This led to a lot of investment in the building of new multi-family residential rental units.
These were built on the assumption the economy would remain strong with lots of people coming to Alberta to work, and to rent. Now many of these new rental buildings are nearly completed and will be coming on the market. This means there will be an over supply of rental housing and tenants will have even more options
Landlords Offering Incentives to Renters
Due to this slow down some landlords are reducing their rental properties to fill their vacant rental units. Others are even offering incentives to get people to rent from them.
These incentives include things such as small deposits and even things such as free cable TV and internet packages. Even with these incentives landlords and property managers say it it still taking them weeks to fill a vacancy (compared to only days not that long ago).
How Can Edmonton Landlords Succeed in 2017?
Experienced and successful Edmonton landlords have been through this before. Our economy is often cyclical in nature. Good times are really good, and then there is a drop in the economy.
Should you panic? No, because it’s only a matter of time before things get really good again. The Alberta Landlords Association blog had some great “top tips for Alberta landlords to succeed in 2016” that is essential reading.
Tenant Screening For Edmonton Landlords
The biggest mistake new landlords make is renting to someone who isn’t qualified just to fill their unit. In a way this is understandable because if there aren’t a lot tenants calling you it can lead you to renting to someone who actually has an interest in your rental property. This is a mistake, as renting to an unqualified tenant can lead to unpaid rent and even thousands of dollars in damages.
Make sure you run a credit check and are patient when looking for new tenants.
After all, it’s only a matter of time before the economy improves and your rental property will have a long list of people wanting to rent from you. Landlords across Canada know you have to have a long term plan, and make sure you only rent to good, rent paying tenants every step of the way!
You can join the Alberta Landlords Association for a low one time registration fee and being running credit checks for a great price!