Posts Tagged ‘Vacancy rates’

Prince Edward Island Landlords Face Climbing Vacancy Rates

Sunday, July 7th, 2013

July 7, 2013

 Prince Edward Island landlord

As Vacancy Rate Climbs Prince Edward Island Landlords Face Challenges

According to a report by CBC News vacancy rates on Prince Edward Island continue to climb, landlords are having a tough time finding tenants to fill empty rentals.

As if landlords in the region don’t already have enough challenges the most recent numbers from the Canada Mortgage and Housing Corporation (CMHC) show the vacancy rate in the province’s urban centres is sitting at about 7.8 per cent, up about three per cent from last year.

The number of vacant rental units in Charlottetown jumped to 8.7 per cent in April, up from five per cent the same month last year. CMHC said new units in Charlottetown are the biggest factor in the increase.

Landlord Daniel Rashed Gave Up

After eight months of trying to rent out his condo, landlord Daniel Rashed finally gave up.

“I kept dropping the price, including everything — parking, heating, cable, whatever I had to do — but I didn’t get the response that I thought I would,” he said.

Rashed, who manages 10 rental units, decided to use the condo as office space for his real estate business instead.

“It does have a big impact. One unit empty that could be $10,000 a year, or $12,000 a year that’s not going back into the mortgage and maintenance and heating,” he said.

Where Are the Tenants?

Rashed said he’s one of many landlords around the city having difficulty finding tenants. And he wants to avoid problem tenants.

Meanwhile, at least one developer said hearing the latest CMHC numbers for Charlottetown makes him happy about his latest deal.

In May, Dico Reijers sold eight apartment buildings — 172 units in all — to real estate giant Killam Properties Inc.

“We hustled pretty hard trying to get these units full and while we never got to those numbers there were a couple months where we might have been pretty close to that,” he said.

“That really affects the bottom line for a small business like us.”

According to the CMHC, more Islanders are renting but not enough to keep pace with new construction.

Is Rent Control the Answer for Nova Scotia?

Saturday, July 28th, 2012

July 28th, 2012


Government Says Rent Control Won’t Be Coming Back!

What is the Latest News about Rent Control?

A couple of regional councillors in Halifax claim they have heard complaints about rent increases.  The want the government to consider bringing about ‘rent control.’

According to Councillor Sue Uteck, people are saying rent payments are too expensive and they simply can’t afford it.

Do they Have Any Concrete Examples?

Uteck claims she heard the complaints while campaigning door to door.  One person she met stated his rent went up $400.  One student said his rent jumped up by $300 a month.  One senior citizen said their rent increased by $350.

Uteck says that while rent control may not be the best answer, what other choices are out there?

What Does the Government Say About Rent Control?

Fortunately the government has no interest in bringing back rent control.  According to the spokesperson for Premier Dexter, rent control is “not something the province is considering or looking at at this time.”

Can You Tell Me the Back Story Behind This?

Rent control end in 1993 under a Liberal government. 

What was the Rental Environment Like Back Then?

The economy wasn’t strong and vacancies were at all time high.  Vacancy rates of over 12 % were common in Halifax.

It was so back landlords were forced to offer things such as free cable television to try to attract tenants.

What is the Vacancy Rate in 2012?

Vacancy rates are much lower.

According to the CMHC (Canada Mortgage and Housing Corporation), the rate is 3.2 for Halifax.

The average rent in Halifax for a 2 bedroom apartment is $926/month.

Aren’t the Vacancy Rates Published by the CMCH Misleading?

Yes.  They don’t take small private landlords into account in their study.  In reality, the rates are no where near what the CMHC has published.

Who is the Second Councillor Trying to Use the Rent Control Issue to Get Votes?

Dawn Sloane is a councillor who is running in a newly created riding.  Sloane says she contacted Premier Dexter about rent control and he didn’t even agree to consider it.  According to Sloane, she’s hearing more and more tenant complaints.

What’s the Reason for Higher Rents in Halifax?

Both councillors believe the the Irving shipbuilding contract is the reason reason for the rent hikes.

According to Sloane landlords as “cashing in.”

Why Are Rents Rising in Halifax?

When rents drop and and vacancy rates rise, where were these two councillors?  Where are they on the real issues for rent increases: out of control property taxes and huge increases in the costs of utilities and energy.

Political pandering is alive and well in Halifax.  Fortunately the Premier is aware of it.