Rents Are Rising and The Vacancy Rate Declines But Experienced Calgary Landlords Know You Need to Screen Tenants Carefully
The headline in the Calgary Herald was heard loud and clear as it was meant to.
It was a report stating rents for 2 bedroom rental apartments in Calgary were the highest in a decade.
Canada Mortgage and Housing Corp. (CMHC)
Richard Cho is a senior market analyst for the CMHC.
He explained there are two main reasons for the rent increase.
1. More people are coming to Calgary to find jobs and rent homes
2. The supply of rental apartments has gone down in Calgary
The rents for two bedroom rentals are up by 7.2% compared to 2012.
Cho also discussed the Calgary vacancy rate.
The October vacancy rate was only 1% in 2013.
In October 2012 the vacancy rate was 1.3%
Landlord Challenges Exist
Experienced Calgary landlords know that despite all this positive information there are still a lot of challenges out there.
You have to be very careful you rent to because there are a lot of bad tenants out there who are tricky.
Due to the lack of rentals and the lower vacancy rates these tenants will do anything to get the keys and rent your property.
Calgary Landlord Out $8,000
One Calgary landlord has lost more than $8,000 is owed rent and damages to her property because she rented to a bad tenant.
Gita Gopal rented to a single mother with four kids.
She felt compassion and wanted to her this single mum and wanted to play a role in helping her kids succeed.
She was taken for a ride.
Months later, Gopal has a new attitude. She has made it her life goal to “hunt down” the former tenant “wherever she goes.”
The Importance of Tenant Screening, Including Tenant Credit Checks
Gopal’s story is not unique.
A lot of residential landlords have lost thousands of dollars due to bad tenants in Alberta.
How Can You Protect Yourself and Your Rental Property?
You can make Equifax and GARDA Tenant Background Screening your partner for finding good tenants and avoiding the pros.
With so many good tenant out there, invest in your business and make sure you find great tenants!