Calgary landlords are being warned they may need to adapt to a dramatic shift in market conditions there, according to a recent news report. Where the vacancy rate neared zero two years ago, CMHC is expecting that rate to spike up to seven per cent next month.
This market change likely was sparked by a migration of young people to other cities in search of jobs. As a result, some Calgary landlords may need to reduce rent or offer incentives like flexible move-in dates or shorter lease terms in order to fill vacancies, according to the report.
While this market gyration is significant, such fluctuations over the long term are a predictable. It’s important for landlords to remember that there is one rental condition that always remains nonnegotiable: running tenant background checks.
Regardless of what the market is doing, landlords need to stay the course when it comes to vetting applicants. A tight market can bring out scammers, but a weak market still attracts the unqualified. A landlord can’t succumb to jitters and fill a vacancy with a bad tenant. That has the potential for greater income loss than leaving the property vacant.
The best approach, regardless of market conditions, is to attract the best of the renter pool. That can be accomplished by:
Keeping the property well-maintained. The best properties always will be attractive to the best tenants. Pay attention to curb appeal and show pride of ownership.
Advertising that you require tenant background checks. This provides an automatic filter that discourages tenants with a bad payment or rental history from applying. Generating a volume of prospects is not helpful if those applicants are not qualified.
Provide excellent service to existing tenants. Good reviews, ratings or an overall good reputation is the best way to compete in any rental market.
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Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.
