While the 2014 Rent Increase Guideline in a Challenge, Other Factors Look Good For British Columbia Landlords in the New Year
Happy New Year to landlords in British Columbia and all over Canada.
This year we will provide you the with news, advice and networking opportunities British Columbia landlords can use to further your success this year.
The Canada Mortgage and Housing Corporation (commonly known as the CMHC) has released their Housing Market Outlook Report and things are looking good for British Columbia Landlords in 2014.
BC Economic Outlook for 2014
The CMHC report see’s our economy expanding at 2.5% which is ahead of the rest of Canada.
It’s also an improvement over the past year.
There will increased business investment and consumer spending.
There will be a shift to more full-time employment and increased job growth.
There will be more first-time home buyer demand and also more rental demand.
More Newcomers Are Coming
Net migration into BC growing.
More than 40,000 newcomers are arriving and choosing our province as their new home.
This is good news as it means more tenants for Surrey landlords and Vancouver landlords.
Housing Market Outlook
There will be over 9,000 new single detached homes in our province in 2014.
There is a new focus on more dense housing styles and increase building of such properties.
The average price of a property on the MLS listing service is expected rise by at least $4000.
Challenges for Residential Rental Property Investors and Landlords
While overall figures are very positive, residential property investors and landlords still face challenges.
Two of the most daunting challenges for BC landlords are:
1. Bad Tenants
Landlords and Property Managers must take note of the rise of stories regarding bad tenants.
Tenant screening by BC landlords is more important than ever before.
Even if you have to leave your property vacant and lose a month or two of rent money it is still far superior to renting to a bad tenant which could lead you to lose thousands of dollars in lost rent and damages.
2. Low Rent Increase Guideline
British Columbia landlords are only allowed to raise the rent by 2.2% in 2014.
This is a very low increase and historically low.
Where do we stand compared to other provinces and their rent increase guideline?
Alberta landlords do not have a legal rent increase guideline and raise the rent as much as they want
Manitoba landlords can raise the rent 2.0% in 2014.
According to the Toronto Sun, Ontario landlords can only raise the rent 0.8% in 2014.
This has created a lot of controversy in that province.
How Do Things Look for British Columbia Landlords in 2014?
There are definitely challenges ahead.
These include the low rent increase guideline and the increase in bad tenants attempting to ‘play the system’ and rip off residential landlords.
Overall the market looks to rebound in 2014 and if landlords make sure they screen their tenants carefully things are looking bright in the new year.