- Joined
- Oct 7, 2007
- Messages
- 699
Incentives for renters - Higher vacancy rates have some landlords sweetening up rental deals Posted By PETE LUCAROTTI - Herald-Tribune staff With the highest vacancy rates of 17 Alberta centres in a May study by the Canada Mortgage and Housing Corporation, Grande Prairie rental rates have declined in recent months.
But Boardwalk Rental Communities is taking it one step further, offering free summer rent in eight of its Grande Prairie buildings.
"It`s because the availability is so high right now in Grande Prairie," said David McIlveen, director of community development with Boardwalk Rental Communities. The deal offers new renters in the Swan City the opportunity to pay only a damage deposit until September, when they`ll start paying regular monthly rates. Renters will also have to sign a one-year contract that will come into effect immediately, instead of when the renter begins paying rent.
But not everyone in the rental market agrees with Boardwalk`s strategy. Prime Property Management broken Brian Bildson admits his company has had trouble filling it`s vacancies as well, but doesn`t see incentives as the solution. "I think they`re ineffective. I think that, in the long run, setting your rents at market rate and running well-managed properties is what attracts tenants," he said. "Our perspective is that we`re trying to be proactive with our rents and keep them at market and keep our vacancy rates down so incentives aren`t necessary."
Boardwalk`s goal with the free rent offer is to attract renters before their competitors, who are also experiencing high vacancy rates."Our vacancy rate is going to be about the same as everyone else. We would probably have somewhere in the 15 to 18 per cent vacancy rate right now," McIlveen said.
But those numbers would put Boardwalk well above the city average for vacancies. The CMHA report listed the Grande Prairie vacancy rate at 8.8 per cent, a number Bildson believes has since dropped slightly. "I believe that was behind the market because they`re basing those percentages on reports from people, but those reports are stale by the time they hit us," Bildson said. "I think it was more likely seven per cent by the time it came out and I think it`s lowered a little since then city-wide and it`s probably close to six per cent."
Regardless of the numbers, McIlvey says the offer has been very successful in its first week. "At this point it`s only been a week or so, but we`ve done three times more rentals as usual. "We`ve done about as many rentals this month between July 2 and today as what we did in all of May, so it`s been a very good response," he said.
Even with the success Boardwalk has had with the promotion, the current state of Grande Prairie`s rental market makes it unlikely all the suites will be full come September.
"That`s probably not going to happen. We`d have to have an overwhelming response for that to happen," McIlveen said.
Visit link at http://www.dailyheraldtribune.com/ArticleD....aspx?e=1108871
But Boardwalk Rental Communities is taking it one step further, offering free summer rent in eight of its Grande Prairie buildings.
"It`s because the availability is so high right now in Grande Prairie," said David McIlveen, director of community development with Boardwalk Rental Communities. The deal offers new renters in the Swan City the opportunity to pay only a damage deposit until September, when they`ll start paying regular monthly rates. Renters will also have to sign a one-year contract that will come into effect immediately, instead of when the renter begins paying rent.
But not everyone in the rental market agrees with Boardwalk`s strategy. Prime Property Management broken Brian Bildson admits his company has had trouble filling it`s vacancies as well, but doesn`t see incentives as the solution. "I think they`re ineffective. I think that, in the long run, setting your rents at market rate and running well-managed properties is what attracts tenants," he said. "Our perspective is that we`re trying to be proactive with our rents and keep them at market and keep our vacancy rates down so incentives aren`t necessary."
Boardwalk`s goal with the free rent offer is to attract renters before their competitors, who are also experiencing high vacancy rates."Our vacancy rate is going to be about the same as everyone else. We would probably have somewhere in the 15 to 18 per cent vacancy rate right now," McIlveen said.
But those numbers would put Boardwalk well above the city average for vacancies. The CMHA report listed the Grande Prairie vacancy rate at 8.8 per cent, a number Bildson believes has since dropped slightly. "I believe that was behind the market because they`re basing those percentages on reports from people, but those reports are stale by the time they hit us," Bildson said. "I think it was more likely seven per cent by the time it came out and I think it`s lowered a little since then city-wide and it`s probably close to six per cent."
Regardless of the numbers, McIlvey says the offer has been very successful in its first week. "At this point it`s only been a week or so, but we`ve done three times more rentals as usual. "We`ve done about as many rentals this month between July 2 and today as what we did in all of May, so it`s been a very good response," he said.
Even with the success Boardwalk has had with the promotion, the current state of Grande Prairie`s rental market makes it unlikely all the suites will be full come September.
"That`s probably not going to happen. We`d have to have an overwhelming response for that to happen," McIlveen said.
Visit link at http://www.dailyheraldtribune.com/ArticleD....aspx?e=1108871
