Furnished Townhouses in Edmonton?

[mandmholdings]

Hi

I was wondering if anybody has any experience with renting furnished townhouses in Edmonton? Is there a demand for for it? If so what is a reasonable rent to charge over and above an unfurnished townhouse?

We have 2 townhouses, both 3 bedrooms and 1.5 bathrooms. One is in the South East of Edmonton and the other is on the North East. Unfortunatley, the two townhouses have a higher interest rate mortgage compared to what could be obtained today and with the rents seemingly going down, I am trying to figure out if furnishing the townhouses would be a viable option. If anybody could offer any thoughts and/or other suggestions I would appreciate it. Thanks

Travis

 

[coinebro]

Travis, I can`t message you because I am not a member. Can you drop me an email at [email protected]

Owen

 

[Thomas Beyer]

QUOTE (mandmholdings @ Apr 22 2009, 11:57 AM) I was wondering if anybody has any experience with renting furnished townhouses in Edmonton? Is there a demand for for it? ..
yes .. if you focus on it .. but it is VERY HARD and takes a lot of work / expertise ..

better to rent unfurnished .. consider a re-fi with today`s low mortgages !

handing the key to the bank is an option too in Alberta !

 

[JaysonSidhu]

QUOTE (mandmholdings @ Apr 22 2009, 10:57 AM) Hi

I was wondering if anybody has any experience with renting furnished townhouses in Edmonton? Is there a demand for for it? If so what is a reasonable rent to charge over and above an unfurnished townhouse?

We have 2 townhouses, both 3 bedrooms and 1.5 bathrooms. One is in the South East of Edmonton and the other is on the North East. Unfortunatley, the two townhouses have a higher interest rate mortgage compared to what could be obtained today and with the rents seemingly going down, I am trying to figure out if furnishing the townhouses would be a viable option. If anybody could offer any thoughts and/or other suggestions I would appreciate it. Thanks

Travis

I am an investor agent who strictly works with REIN members and investors on a daily basis and a high percentage of what we are investing in are 3BR 1.5 Ba townhouses, so needless to say I have a fair bit of experience in this area. That said, to date I have never had an investor acquire a townhouse and rent out as a furnished rental. Yes, there is downward pressure on rents in todays market, however rates have dropped substantially and most of the deals we are looking at in todays market are net cashflow positive.

Most of the furnished rentals in Edmonton are used as executive rentals and rented out by corporations for their employees. Most I have seen are based in the downtown core as this is where most companies will need to place their employees. Yes, they have higher rents but they can have incredibly long vacancy and turnover times. To answer your question, I don`t think this is your best strategy for townhouses and I think you`ll find that you can find opportunites in today`s market that are cashflow positive.

I hope this helps, please feel free to contact myself directly if you have anymore questions.

 

[mandmholdings]

QUOTE (JaysonSidhu @ Apr 23 2009, 12:03 PM) I am an investor agent who strictly works with REIN members and investors on a daily basis and a high percentage of what we are investing in are 3BR 1.5 Ba townhouses, so needless to say I have a fair bit of experience in this area. That said, to date I have never had an investor acquire a townhouse and rent out as a furnished rental. Yes, there is downward pressure on rents in todays market, however rates have dropped substantially and most of the deals we are looking at in todays market are net cashflow positive.

Most of the furnished rentals in Edmonton are used as executive rentals and rented out by corporations for their employees. Most I have seen are based in the downtown core as this is where most companies will need to place their employees. Yes, they have higher rents but they can have incredibly long vacancy and turnover times. To answer your question, I don`t think this is your best strategy for townhouses and I think you`ll find that you can find opportunites in today`s market that are cashflow positive.

I hope this helps, please feel free to contact myself directly if you have anymore questions.

Thanks. You sort of confirmed what I was already thinking. Our townhouses will cashflow as soon as I get a new mortgage on them. I am looking into the payout penalty now. Worst case scenario the maturity date of the mortgages come up in the next year to year and half. If it doesn`t make sense to do it now I will wait and put better mortgages on then.
Travis