Re: Rental too high
Posted: Sep 1st, 2017, 5:13 pm
Queen K wrote:Wow, it's about time. People need protection from illegal and shady evictions. Good for Ontario.
More red tape added, less landlords to serve the renters.
Queen K wrote:Wow, it's about time. People need protection from illegal and shady evictions. Good for Ontario.
forum wrote:The market will balance out. It will take time. City council is useless and do not know how to effectively handle this matter.
I doubt they care. The problem doesn't touch them. Eventually the right person will be given the power to make change. Someone smarter than the current team of leaders. Someone that isn't tied in profiting with developers and real estate.
There will be a saturation point in the market where AirBNB won't be so lucrative.
No city can last without a healthy rental and affordable housing market. Our current leaders don't understand this. They also don't understand why the crime rate keeps going up.
At this rate eventually a plumber or house cleaner will cost $350/hr.
The working class will find a better place to live.
Some people believe the working class in Vancouver is moving to Kelowna. A few are, but they find out quickly that Kelowna has high crime, no culture, subpar venues, poor paying seasonal jobs, a goofy city council, and traffic problems. So they move again.
Most move to Ontario, or Vancouver Island.
Lady tehMa wrote:forum wrote:The market will balance out. It will take time. City council is useless and do not know how to effectively handle this matter.
I doubt they care. The problem doesn't touch them. Eventually the right person will be given the power to make change. Someone smarter than the current team of leaders. Someone that isn't tied in profiting with developers and real estate.
There will be a saturation point in the market where AirBNB won't be so lucrative.
No city can last without a healthy rental and affordable housing market. Our current leaders don't understand this. They also don't understand why the crime rate keeps going up.
At this rate eventually a plumber or house cleaner will cost $350/hr.
The working class will find a better place to live.
Some people believe the working class in Vancouver is moving to Kelowna. A few are, but they find out quickly that Kelowna has high crime, no culture, subpar venues, poor paying seasonal jobs, a goofy city council, and traffic problems. So they move again.
Most move to Ontario, or Vancouver Island.
This is the largest city/town I have ever lived in. It is also one of the prettier ones, especially for ease of access to hiking, fishing, or just enjoying nature in general. I have lived in BC all my life and haven't traveled much to any of the other parts of Canada.
Many of my coworkers and my employer aren't from here. Or from BC. None of them are from small towns, all larger. One was telling me - when I was mourning the loss of fresh air - that on any given day in Toronto, that is what the air quality was like normally. One, who has lived in Hong Kong - was talking about how quiet the city is (comparatively). We were discussing rental rates and property value and someone said "People who think that they can keep this little corner all to themselves are in for a rude awakening." Our city is changing. We are growing. I will probably move to the outskirts when I retire - maybe Joe Rich or Ellison or Lake Country - because it is getting too busy for me.
I don't know what this means for rental rates, but I can't see them coming down.
Even Steven wrote:The demand is there, so why not charge a higher rent.
I know somebody who recently had to change tenants. He listed his place at $1,400/month and received 80 applications. I told him to raise it to $1,700 and see what happens. He received 35 applications. So, just for the hell of it, he re-listed it again at $1,900/month and still received 20 applications, picked a good tenant, and rented the place.
So, my advice netted him extra $15,000 since his average tenant stays between 2 and 3 years. With the same expenses!
I think he owes me a case of beer or something.
dominik wrote:...however what you are describing here has little to do with basing your pricing your rental pricing on actual market conditions.
The worry I have in a situation like this is that you suggested to raise the rent by nearly 21% moving it far beyond what most single or dual income earners in this area can afford.
dominik wrote:I just came back to this thread, and I have to say this statement is very much the issue a rental market which is moving upwards in costs and moving out of reach of normal working renters.
dominik wrote:Now as I have said earlier, it is up to the landlords to charge what they feel is appropriate, however what you are describing here has little to do with basing your pricing your rental pricing on actual market conditions. The worry I have in a situation like this is that you suggested to raise the rent by nearly 21% moving it far beyond what most single or dual income earners in this area can afford.
dominik wrote:This doesn't mean that you may not get tenants that are paying this, however this is not a true reflection of what the market has to afford, but what the market is forced to pay.
dominik wrote:I think the additional worry we should all have, is that with more and more people working 2-3 jobs to afford their "normal" rents we are seeing a change in our community. People have less money to spend in the local market, they have less time to invest time and effort into our community, and have to fight (don't mistake this with "just going to work") to live.
dominik wrote:A lot of these are my opinions and yes I am not always right, however when we are discussing markets, and effects we are referring to facts, something which has been seen in many municipalities and other areas. The issues surrounding high rents are quite complex and by all means not easy or straight forward to resolve, but in the end part of it is being socially responsible.
youjustcomplain wrote:dominik wrote:I just came back to this thread, and I have to say this statement is very much the issue a rental market which is moving upwards in costs and moving out of reach of normal working renters.
What about normal working landlords? I own a house, and I rent out my basement suite. I have a full time job and a second job. My wife has a full time job. Why should we charge less than what the market will bare?dominik wrote:Now as I have said earlier, it is up to the landlords to charge what they feel is appropriate, however what you are describing here has little to do with basing your pricing your rental pricing on actual market conditions. The worry I have in a situation like this is that you suggested to raise the rent by nearly 21% moving it far beyond what most single or dual income earners in this area can afford.
Lets say you own an old 77 Bronco. It's been sitting in your garage for years. You paid $1500 for it 10 years ago. Now you can sell it for $20,000 because the market for this vehicle is hot. Do you sell it for $1500? or do you research what similar aged broco's in similar condition sell for then price yours accordingly?
It really is exactly the same thing. Why exchange a product for less money than it's worth?dominik wrote:This doesn't mean that you may not get tenants that are paying this, however this is not a true reflection of what the market has to afford, but what the market is forced to pay.
It's my opinion that you're %100 wrong. If I put up my basement for $1200 and I get people willing to pay it, that is a reflection of what the market is willing to pay. If I advertise it for $2500 and get no interest, then it's evidence that I'm over priced.dominik wrote:I think the additional worry we should all have, is that with more and more people working 2-3 jobs to afford their "normal" rents we are seeing a change in our community. People have less money to spend in the local market, they have less time to invest time and effort into our community, and have to fight (don't mistake this with "just going to work") to live.
I totally agree with this. As I said above, I work multiple jobs. Sure, I can afford my house without the second job and I could afford it without having a tenant at all, but paying down my mortgage and having vacation money for my family is important to me; just as it is with others.
Should everyone need 2 or 3 jobs just to afford to live? No ! I do it to afford more luxuries.
There are working poor, which I feel sympathy for. I was one for many years. I lived in cheap appartments and basements while I saved my money and eventually had enough for a down payment. Now I have two jobs as a choice, not an obligation.dominik wrote:A lot of these are my opinions and yes I am not always right, however when we are discussing markets, and effects we are referring to facts, something which has been seen in many municipalities and other areas. The issues surrounding high rents are quite complex and by all means not easy or straight forward to resolve, but in the end part of it is being socially responsible.
If people have 2 or 3 jobs to afford to live in the Kelowna area and they don't want to work that much just to afford housing, then the the conclusion is a simple one; Move to a cheaper area. Really, that's what it comes down to. Sure, it's not a easy decision, I get it. But I'm not going to be the 1 socially responsible guy who rents his basement for less than it's worth. No socially responsible real estate agent, or builder gave me a break when I built my house.
Yes, facts are facts. Housing pricing is going up. Meaning, landlords are paying higher mortgages. This is driving home owners to become landlords to offset some of the costs. Sorry that tenants have to pay these prices, but they are coming from the price of housing at the home owner level which is driven by a LOT of factors that can't be controlled by the home owner.
dominik wrote:We aren't seeing what the market is willing to pay, but rather what the market is forced to pay