CALGARY, Alberta--(BUSINESS WIRE)--Hope Street Real Estate Corporation, an industry leading tenancy management firm specializing in residential housing rentals releases fall 2016 report on Alberta’s private rental markets showing dismal rental returns and large number of empty, advertised, rental homes.
Edmonton area private Landlords continue to suffer losses in a flat rental market. The 90 day period ending on October 31 saw an average of 5211 Edmonton homes available for rent on any given day with an asking rent of $1168. This figure was blended to include numerous property types: Houses with 3 bedrooms or less, Executive homes with 4 bedrooms or more, one and two bedroom apartment style condos respectively, suited or laneway rentals, and townhomes. Of Edmonton’s 5211 available homes, 21% or 1094 of them were considered advertised and vacant representing a bad loss to Edmonton Landlords of roughly $1.28M per month, which translates to a daily loss of roughly $42,600 due to rental homes sitting vacant.
The statistics suggest that Calgary area Landlords are worse hit than their counterparts to the north: the same 90 day period saw an average of 8102 Calgary homes available for rent on any given day with a blended average asking rent of $1477. Of these homes, 37% or 2998 were considered advertised and vacant which represented a bad loss of $4.43M per month or $147,700 per day.
According to Shamon Kureshi - Hope Street’s CEO and the report’s lead author, “Times are hard for every single Landlord with whom I’ve spoken in the past 8-12 months. Empty rental properties abound and no obvious solution to the province’s empty rental property phenomenon exists. Landlords need to engage a carefully executed plan to weather this storm, and to adjust their expectations on their property ROI.”
Hope Street Real Estate Corporation is an industry leading team of property management professionals serving Edmonton and Calgary. Hope Street is comprised of a total of 46 team members and directly manages the tenancies of nearly 3600 people in Alberta’s major centers or surrounding communities.
Read the full report for more details, commentary, and historic perspective at https://hopestreet.ca/news/39