The Property Management Roller Coaster in 2022.
The last 2½ years have been very interesting. The pandemic roller coaster has been trying to say the least. Most of us have survived with a lot of changes.
Working from home has taken some adjusting and rental property listings and showings have been a challenge. Hopefully we have all learned from it. We certainly have learned to “make it work” as they say.
Home property values went up earlier in 2022 which encouraged property owners to sell their investment property for a profit. During the pandemic many off-shore investment owners decided that coming to Canada and moving in to their homes was safer than staying where they were. Displaced tenants had to find alternate accommodations. The result? A lack of inventory for tenants to choose from. This “supply and demand” scenario caused rental prices to skyrocket in most of the lower mainland and adjacent communities.
It appears that the market is stabilizing now. Property sale prices appear to be coming down which usually means homeowners hold on to their investment property. Will this result in monthly rental prices coming down a bit? It is too soon to tell but it does appear that this is happening.
We are all paying more for taxes, insurance and repairs, plus qualified reliable trades are hard to come by. Homeowners have had to bear the brunt of additional costs in the short term because of the “state of emergency’ rent increase freeze. Investors would like their tenants to pay more to cover these costs. Obviously, in a perfect world the rental income should cover our expenses, but this is not always the case. Bear in mind tenants have also had additional costs and in most instances, the property value has increased. Remember the tenant has helped pay for this, and do not get the benefit in the end. It truly is a balancing act.
The BC Government is in the process of figuring our what the rent increase will be for 2023. Most tenants will get a rent increase, especially if the rental price is undervalue.
When renting a newly acquired property, Casa Rental Management advises investment owners the estimated rental price for the property should be at the time the rental comes available, also known as market rent. Without experience, market knowledge and data, a homeowner does not have all the facts. What you see on TV and what your read on the internet does not tell the whole story, not even close. We are the experts and we are here to help!
Tammy de Diego Mott
VP of Operations
Casa Rental Management
Give us a call or email! 604-273-6801 [email protected]