Kelowna rental prices

[797hauler]

I posted a topic awhile ago regarding the rental prices. It's such a shame to see that landlords are still taking advantage of people. I never did become active in the topic because some of the responses were ridiculous. After seeing this mornings headlines about the mom camping, it makes me sick, literally sick. Houses are not worth what's being Asked for them. Any rental in Kelowna for that matter.

I read responses such as, "people have high mortgages" ( that's BS) and if so, then buying a investment property where your mortgage is $2500.00 + just made you a dumb investor.

"If people can get it then why not"? Well gauging comes mind doesn't it?

I remember renting three properties over time in Kelowna, one on peak point drive,nice area in rose valley. we paid $1600.00 for a whole duplex that was about 2100sqft I believe, a double garage ect ect. Brand new too and never lived in.we also had a Rottweiler in tow.

Place two was a house in Sonoma pines, brand new never lived in. Double garage fully developed. We paid $1500.00.

we also took a condo before the kids came along and we paid $1000.00 for a two bed plus a den.

Now the thing is the same condos now range from $1400.00-$1600.00

The houses today I'm guessing would be around $2200.00 to $2800.00

What's the real justification here for the prices?

My idea is trend. There's nothing that makes Kelowna worth those prices or living house poor. We moved back to Alberta where prices are dirt cheap. You can get a whole house in royal oak, Tuscany, country hills or anywhere in the south for $1500.00 with double garages, yards, the works basically.

The house I rent today for $1600.00 is a four bedroom house right beside a park on a no through road, garage and all upgraded on the inside. We're not directly in Calgary just on the outskirts. A house similar to mine in Kelowna is $2900.00 . Blew me outta the water. Where the Kelowna house deserves $15,600 a year of rental money is beyond me.

Where I'm going with this is the landlords that are over charging which is all of you, you should be ashamed to do this to your neighbours. Your neighbours family and so forth. Your disgusting.

It will be nice to see the market take a dive in Kelowna (will happen) and all the landlords scramble to get people in their units for cheap. We all know that these cycles happen. It's only a matter of time. It takes one (1) and I mean one event, market crash or a natural disaster for example and the pricing will shift. And all you greedy landlords will be kicking yourself straight in the *bleep*...

And all you "investors" well self proclaimed "property investors" can be stuck with high mortgages that the rent will never cover.


These poor people of Kelowna, I feel for you. The mom camping with her daughter breaks my heart. My daughters that age, and it kills me to hear that that mom Has to have her daughter live with those memories of camping out because her mom couldn't afford a place to live in a society where we have every resource to lend a hand and reduce a rate to keep a family together.


If it's possible for people to move to Alberta, do it, this is our second run in Alberta, and only because how cheap it is. We save about $3500.00-$4000.00 a month net after paying all bills right now. My wife is currently managing a chain restaurant and I'm still operating equipment. But we have no debt, about $25,000.00 extra in savings since coming back and is only growing. If we stayed in Kelowna. We would save almost nothing. Cheap gas, cheap rent, cheap food. WHY NOT?


I want to wish everybody struggling a well wish of hope. Stick with it. Stay strong and it will only be a matter of time. When the floods hit Calgary we couldn't move to Calgary because the house I'm in today would have cost $2500.00 + (that's what the ol bugger used to get) it's a trend that will change.


It's really just too bad people would rather fill their own pockets and watch people struggle then help put a roof over someone's head.

[W105]

thank god BC has rental control, could you just imagine how much higher the rent would be if we didn't....

[Lady tehMa]

Rental prices will be whatever the market will bear. You are at the whim of the market; with a 0.5 vacancy rate there is going to be competition.

I have known people who are landlords, and people who were landlords. More and more people are getting out of renting investment properties because despite what rent they get, it isn't worth it. Renters often don't take care of the properties and cause more damage than the deposit will cover.

My husband's sis and her family have moved back to Kelowna. They bought the house last year and continued to allow the renter to stay until they moved back (last week). Now they're staying with the folks because the house will practically need to be gutted - the woman had cats and apart from replacing carpet they're going to have to replace subfloor as well. So they'll be camping until the house is livable.

So yes, there are exceptions to the "but I'm a good renter" and those guys are driving down the market as landlords seek to offload their properties. If there are no rentals, people may have to look at *gasp* actually buying their own place and being responsible for it. "But we can't afford it". So get rid of starbucks and cable, brown bag your lunches. Surely you can find something in your price range? It may not be in the upper mission or Wilden, but you have to start somewhere. And if you can't - maybe it is time to move. Choose a cheaper property in the boonies and commute.

[Hmmm]

If we rent our house, we want to make cash on it, not just cover expenses. There are many expenses that occur with home owning and renting. Unexpected repairs, loser tenants, fixing damage, lawyers, insurance and I would 100% pay for landscaping each week, so my lawn doesn't turn to crap. On top of all this, plus much more that can happen, I want to make some money. How low can you really charge when reason is dictating the cost?

[Bsuds]

I have known people who are landlords, and people who were landlords. More and more people are getting out of renting investment properties because despite what rent they get, it isn't worth it. Renters often don't take care of the properties and cause more damage than the deposit will cover.

Exactly! We had a rental property years ago when my wife and I married and each owned a home. Even rented it to the son of someone I worked with thinking they would be responsible. Big mistake, they didn't do damage but missed rent due days etc. It was totally not worth the hassle and I would never do it again.

[dieseluphammerdown]

Exactly! We had a rental property years ago when my wife and I married and each owned a home. Even rented it to the son of someone I worked with thinking they would be responsible. Big mistake, they didn't do damage but missed rent due days etc. It was totally not worth the hassle and I would never do it again.

It's a tough go out there these days for younger people to make their own way. If there was more affordable housing , then Baby boomers would have less adult children lurking in their basements free loading off them.

[TylerM4]

Supply and Demand.

I USED to be a landlord. It's not worth it, especially if you want to do it ethically.

They only landlords actually making good money are those that own run down houses converted to contain 3 units (at least one isn't legal).

Real-estate is too expensive, and the laws are balanced too in favor for the tenant. There's way too much risk for the potential reward.

[Bsuds]

If there was more affordable housing , then Baby boomers would have less adult children lurking in their basements free loading off them.

I lose a lot less money having one in my basement than I did owning a rental house!

[Static]

I would much rather own bank shares that increase their dividend higher than rent caps allow. Again, as many pointed out, rentals are not as lucrative as many people think.

[acidrain]

I decided to buy a condo a few years ago and rent it out. The idea was to keep it as affordable as we possibly could. I was happy if we could at least balance our books as the intent was to use the property as another retirement plan.

We've had the best tenants a person could ask for. I firmly believe a lot of that has to do with the fact they know they could not find a deal like ours elsewhere.

Having said that I felt incredibly naive in what everything was going to cost. Things break down to no fault of anyone. You have to be available for repair calls anytime. Every little thing costs money and eats into the profits. You factor in condo fees, mortgage payments, etc. and it's surprising how little is left.

The one thing to keep in mind which I didn't consider is the issue of capital gains. Revenue Canada wants their cut and if you have a legal rental and declare it you have to pay tax on the profit. You also have to pay tax on rental income annually. If you sell your house for a profit you have to pay capital gains tax. Say you bought the place for $200,000 and sell it for $250,000. 50% of the profit ($25,000) is taxed by Revenue Canada. Depending on where your income level falls you could be paying a lot of tax. The $25,000 is added to the persons annual income. Any rental profit you make is also taxed annually. You cannot claim a mortgage payment as a deduction, only the interest portion.

When doing the math the juice isn't worth the squeeze. For those people who rent their basements and don't declare the income, they are taking a chance. I've known many people who have been busted and it's not difficult for Revenue Canada to figure out who has been living there with an address search. All it takes is a disgruntled tenant or friend to turn the owner in. You will be forced to pay capital gains tax on a portion of the house.

Personally I think more should be done by all levels Government in form of tax credits to landlords who offer their rentals at affordable prices. Since our rental is not our primary residence we have to pay full property tax without any Homeowner Grants. There isn't a great deal of incentive for people to put everything they own on the line. If there is any damage to the unit, the place sits empty while finding another tenant, advertising etc. are other ways landlords lose money. Unless a person got into the real estate market when it was far less expensive it's difficult to make a real profit.

It probably would've been at least 10-15 years before it would've been worth it to us. We're grateful our experience has been positive but know that can change in a second. After trying it for a few years we decided to sell the place. I fully understand where other people are coming from who have done the same.

[kingsandman]

I posted a topic awhile ago regarding the rental prices. It's such a shame to see that landlords are still taking advantage of people. I never did become active in the topic because some of the responses were ridiculous.


It will be nice to see the market take a dive in Kelowna (will happen) and all the landlords scramble to get people in their units for cheap. We all know that these cycles happen. It's only a matter of time. It takes one (1) and I mean one event, market crash or a natural disaster for example and the pricing will shift. And all you greedy landlords will be kicking yourself straight in the *bleep*...

And all you "investors" well self proclaimed "property investors" can be stuck with high mortgages that the rent will never cover.

When the floods hit Calgary we couldn't move to Calgary because the house I'm in today would have cost $2500.00 + (that's what the ol bugger used to get) it's a trend that will change.

You're contradicting yourself. You say "one natural disaster" will cause rental rates to drop but then mention that your place in Calgary was way higher after the floods. Market values in Kelowna (along with rental rates) took off after the fire in '03 as did Calgary after the floods and now Fort McMurray after the fire.

You mention a "market crash" will affect rates. That's what you're enjoying in Calgary right now. The area is hard hit with the drop in oil prices and as they come back, your rent will rise.

It would be nice if people could live where they want but it's not a fundamental right. Can't afford an area you like? Cross it off the list and move down to the next. It's that simple......

[Queen K]

I decided to buy a condo a few years ago and rent it out. The idea was to keep it as affordable as we possibly could. I was happy if we could at least balance our books as the intent was to use the property as another retirement plan.

We've had the best tenants a person could ask for. I firmly believe a lot of that has to do with the fact they know they could not find a deal like ours elsewhere.

Having said that I felt incredibly naive in what everything was going to cost. Things break down to no fault of anyone. You have to be available for repair calls anytime. Every little thing costs money and eats into the profits. You factor in condo fees, mortgage payments, etc. and it's surprising how little is left.

The one thing to keep in mind which I didn't consider is the issue of capital gains. Revenue Canada wants their cut and if you have a legal rental and declare it you have to pay tax on the profit. You also have to pay tax on rental income annually. If you sell your house for a profit you have to pay capital gains tax. Say you bought the place for $200,000 and sell it for $250,000. 50% of the profit ($25,000) is taxed by Revenue Canada. Depending on where your income level falls you could be paying a lot of tax. The $25,000 is added to the persons annual income. Any rental profit you make is also taxed annually. You cannot claim a mortgage payment as a deduction, only the interest portion.

When doing the math the juice isn't worth the squeeze. For those people who rent their basements and don't declare the income, they are taking a chance. I've known many people who have been busted and it's not difficult for Revenue Canada to figure out who has been living there with an address search. All it takes is a disgruntled tenant or friend to turn the owner in. You will be forced to pay capital gains tax on a portion of the house.

Personally I think more should be done by all levels Government in form of tax credits to landlords who offer their rentals at affordable prices. Since our rental is not our primary residence we have to pay full property tax without any Homeowner Grants. There isn't a great deal of incentive for people to put everything they own on the line. If there is any damage to the unit, the place sits empty while finding another tenant, advertising etc. are other ways landlords lose money. Unless a person got into the real estate market when it was far less expensive it's difficult to make a real profit.

It probably would've been at least 10-15 years before it would've been worth it to us. We're grateful our experience has been positive but know that can change in a second. After trying it for a few years we decided to sell the place. I fully understand where other people are coming from who have done the same.

Thank you for a sane assessment which left almost nothing out. I say almost because there is the residual aftermath of what a bad tenant can leave you, getting rid of junk they refuse to move out of the rental. I had to pay people to remove stuff, thus adding another expense to the long list you've so well spelled out.

When I could clearly see my tenants weren't caring about where they lived it went like this: I got letters from the strata that the kids were being lazy with the gate, not locking it or just jumping over the chainlink, thus bending it. I got a call claiming that the bathroom flooring was bad and could she get rent taken off for replacing it, prompting a visit from me long enough (five seconds) to see that the bathtub surround had been drilled through. Oh and the hallway light fixture was now broken. I didn't mind that a bedroom wall had been painted over, I just knew right away they'd never make it neutral again. And on and on, until I sold it. She tried to make me feel guilty for selling but months later her next place had to be completely gutted and redone inside due to extensive drywall damage. New landlord, new victim.

So why get a rental at all and offer low rent? I have no idea anymore.

[Queen K]

I know many people who have said, "and they landlord doesn't claim the rent on income, I know that for a fact and I'm calling Revenue Canada on him/her."

Why would any landlord put themselves in this position? The first thing I'd be doing is sitting down with a potential tenant and telling them that all income from the suite is declared and that would never be an issue to hold over my head.

[acidrain]

I know many people who have said, "and they landlord doesn't claim the rent on income, I know that for a fact and I'm calling Revenue Canada on him/her."

Why would any landlord put themselves in this position? The first thing I'd be doing is sitting down with a potential tenant and telling them that all income from the suite is declared and that would never be an issue to hold over my head.

There are so many scenarios where a tenancy doesn't end well. The landlord may have every right to keep the damage deposit or there is an eviction and the tenant wants revenge. If the tenant was asked to pay in cash a person knows there is a good chance they aren't declaring it. Some people may phone or send a letter anyway. If you have any disgruntled family members or people who have a bone to pick with you they can also send in a letter anonymously. They may not even know if it's true. I've honestly seen it happen. I've even heard of a disgruntled ex ratting the other out.

I forgot to mention in my OP the issue of legalizing the suite municipally. This does not apply to me as I rent out a condo and adhere to strata rules. However, if the municipality gets wind there is an illegal rental they may investigate. My neighbours seem to be cordial to one another in that regard. But I know people in other neighbourhoods where they aren't happy with the fact there is a rental and call it in. It can get expensive to ensure the suite meets all bylaw requirements.

[Hassel99]

Want to add to the rental supply?
Tax rental income at a lower rate or not at all.