With both the amount of vacancies as well as monthly rental rates rising in Calgary, securing the right property management company is more important than ever to ensure you get the most out of your investment. Fortunately, Mountain Park Real Estate has the experience required to address the many challenges of property management, including filling increasing vacancies in troubling economic times.
Economic Instability Plays a Large Role
Most industry experts point to economic instability within Calgary as a significant factor in rising rental rates as well as mounting vacancies. Rents appeared to remain stable through fall of last year, at which point fears about the lagging economy where founded as rents began to increase. Recently average rents for a two-bedroom apartment in the area were surveyed at $1,319, which rivals rents in higher-priced areas like Vancouver.
This also explains the higher rate of vacancies in the area, with unoccupied residences rising to 3.2%, which is more than double the vacancy rates from the previous year. Diminished work opportunities around Calgary caused an influx of residents, who then left the area as lay-offs occurred. Property owners are now contending with higher rents and fewer tenants, which can lead to financial turmoil when it comes to an investment.
Higher Rents Are Resulting in a Decreased Rental Pool
As rents continue to increase, residents of Calgary are seeking alternatives to exorbitant rental rates. This can include leaving the area as mentioned above, or simply investing their money into home ownership, which is being bolstered by the many new home construction projects in the works.
These factors have many experts calling for more affordable housing for residents, including homes suited to the area’s homeless population. However, the increase in rental rates doesn’t show signs of abating any time soon, particularly as economic instability remains.
A Reliable Property Management Company Can Help
When faced with the challenges described above, a reliable property management company can be vital to achieving success. Mountain Park Real Estate is just such a company, with the ability to assist owners dealing