Penticton: struggling to attract families?

[rustled]

It's all part of the picture.

It was once primarily empty-nesters renting out a room or two in their home to pad out their retirement income and still have room when the "kids" come home.

Now it's impacting the rental business. Short-term, vacation, and seasonal rentals are more profitable, and they allow the landlord to avoid all the risks of the Residential Tenancy Act. We looked at the Act when we were considering becoming landlords, weighed the pros and cons, and decided there's no way we'd take that big a risk. (twobits did a great job of explaining why!) Here in Penticton, where there's a terrific market for short-terms, it would be much smarter to do what a lot of landlords are doing: tidy up a little starter home, rent it out seasonally (October to April), then hike the price and take advantage of the Air B&B market for the summer months.

We'd have done it with licencing and claimed it on our taxes, but we'd still be contributing to the shortage of reasonably priced long-term rental accommodation, and helping push up the cost of starter homes in Penticton.

Several levels of government have worked together to create this problem. They're going to have to work together to fix it.
The rule of thumb used to be something like 30 per cent of your income should go to your housing. If you're still working your way up to a good-paying job, you can take in roommates and eat on the cheap while you save up for your next move (which may be to buy a starter and open a bedroom for Air B&B to help with the mortgage). But if the rent's too high to leave you any options, or just plain unavailable, a lot of folk will decide their best option is to live elsewhere. That's fine, but IMO it's short-sighted for us to tell the people we need to look after us as we require more services as we age "tough luck, kiddo, live somewhere else".

[Osoyoos_Familyof4]

Just sayin...

I know crappy tennents are out there, but there are plenty who are good.

We are always on the verge of having to move to the coast to have access to BC Childrens. We sold a home during an acute incident with our child and have rented since. We love our landlord and she loves us. This is our second home in town we've rented, the first house we took such lovely care of it (nicer than when we got it) the landlord put it up for sale because they knew that it would never look so nicely staged again. In both cases we give the landlord 12 cheques a year and never hear a word from each other except if something major needs to be fixed (my husband fixes dozens of little things on his own).

I don't think renters get a fair wrap sometimes.

[JollyGreenBully]

My point is Fluffy that I really believe there is a large segment of the population out there who honestly believe they should be taken care of. No personal accountability. They are deserving and on their terms. I walked away from this woman feeling somewhat angered that she felt she was entitled. On the other side of this, I have met individuals who have bettered themselves through education and skill training and the difference in attitude is night and day. So those who want will and those who think they should just receive won't.

So ridiculous. Wanting enough money to actually be able to purchase food to sustain one's life and not have to live in some dump isn't being entitled. If it is, then everyone on Earth is entitled. You know that starving kid in Africa you give money to? So entitled, he should go work in a factory and earn his own money.

Penticton has a severe lack of jobs paying more than peanuts just like the rest of the Okanagan.

[Jflem1983]

My point is Fluffy that I really believe there is a large segment of the population out there who honestly believe they should be taken care of. No personal accountability. They are deserving and on their terms. I walked away from this woman feeling somewhat angered that she felt she was entitled. On the other side of this, I have met individuals who have bettered themselves through education and skill training and the difference in attitude is night and day. So those who want will and those who think they should just receive won't.

So ridiculous. Wanting enough money to actually be able to purchase food to sustain one's life and not have to live in some dump isn't being entitled. If it is, then everyone on Earth is entitled. You know that starving kid in Africa you give money to? So entitled, he should go work in a factory and earn his own money.

Penticton has a severe lack of jobs paying more than peanuts just like the rest of the Okanagan.

Maybe you need to go back to school . Lots of jobs here this year in kelowna

[rustled]

Just sayin...

I know crappy tennents are out there, but there are plenty who are good.

We are always on the verge of having to move to the coast to have access to BC Childrens. We sold a home during an acute incident with our child and have rented since. We love our landlord and she loves us. This is our second home in town we've rented, the first house we took such lovely care of it (nicer than when we got it) the landlord put it up for sale because they knew that it would never look so nicely staged again. In both cases we give the landlord 12 cheques a year and never hear a word from each other except if something major needs to be fixed (my husband fixes dozens of little things on his own).

I don't think renters get a fair wrap sometimes.

I'd bet the vast majority of renters are good and decent people who would take reasonable care of the landlord's investment, in a fair and equitable exchange for a decent place to live at a reasonable cost.

The problem is, if do I rent to one of the minority, that renter is now legally equipped by the Act to wipe me out. Ordinary people can get into bad relationships, make their own bad investments, lose their jobs, etc., and there's no guarantee a renter with a decent track record won't become a significant problem if their own situation changes. It's not a risk I can afford to take, not with the high initial investment cost in Penticton. The stress I've seen folk go through when dealing with a bad tenant is something we thought long and hard about, too, but all things considered, the Residential Tenancy Act itself was the tipping point for us.

I wonder how many others have decided against (or gotten out of) the long-term rental market because the RTA makes it too risky an investment for them? I wonder how many more long-term rentals would be available if people felt the RTA provided reasonable protection to landlords against bad tenants? Should the municipalities which lack affordable rentals lobby the provincial government to make changes to the RTA? If Penticton lobbied the Province for improvements to the RTA to help deal with the lack of affordable housing here, wouldn't the Province suggest they look first at formulating better policies around how homes are being used as short-term rentals, as twobits suggested? How much would a crackdown on short-terms affect peoples' ability to invest in home ownership? That may be how those people can afford to live and work here, paying down their mortgage until they feel they can afford to start a family, or working their way into retirement in a home big enough the kids can come and visit, etc.

I don't think any of this is particularly simple. But people who feel they can't afford to live here will choose to live elsewhere.

[southy]

*removed*

[JollyGreenBully]

*removed*

[Glacier]

The Okanagan is one of the fastest growing areas in the entire western world. Ya, we're struggling to attract sucker people into moving here.

[fluffy]

The Okanagan is one of the fastest growing areas in the entire western world. Ya, we're struggling to attract sucker people into moving here.

Penticton has some pronounced geographical constraints, lakes north and south, steep slopes east and west. We actually recorded a slight drop in population in the last census.

I'm not really sure what people expect local government to do in the way of attracting young families, or even what could be done. What we have to offer that particular demographic is certainly limited when you consider income opportunities for non-professionals.

[Glacier]

Meanwhile, across the channel over the Rez, things are BOOMING as the Skaha Hills development is adding another 1000 people. Maybe Penticton's taxes are too high. I know mine are at over $3,800 per year (before grant), which is why I'm considering moving outside the city limits.

[fluffy]

Then are we seeing a line drawn between those able to buy and those wishing to rent?

[seewood]

Penticton is struggling to attract families because of a host of reasons...in my opinion... Government jobs are pretty much it for work that pays a decent wage or survivable wage in Penticton. The surplus of places to eat, places to do yoga, places to get your car fixed or repaired, get tires, realtors, arguably even lawyers, gives so much competition the employees pay for living here with lower wages.
The low wages and lack of decent paying jobs, even if you are a professional or trade person might have one look to another jurisdiction until it is time to retire..
If one spouse gets a job here say in government but the other spouse if a professional/ or not, cannot, the chances of relocation becomes an issue. The new prison had this issue evidently.

Penticton does not have any land for new business's to set up shop and as mentioned in the past, kinda out of the way as well. Mind you Peter Bros. and Cantex seems to be doing well.
I'd like to see the Penticton council start working with the PIB to develop the land at the end of the bridge to no-where on the park-way. No box stores, more low wage jobs and high rents will exacerbate the affordable rent issue.

Regarding the Air B&B and lack of affordable rents, I'd echo the fact the landlord has virtually no say when a tenant becomes a problem. My rental unit is going to become "office space" Anything so the RTB is not involved. Brother has sold his rental houses, friend has sold their apartment block ( tired of the RTB hearings), friend is going to sell when current tenant leaves...list goes on

[Glacier]

Judging by the size of homes in Penticton, I would say most people are doing quite well financially.

[fluffy]

https://beta.theglobeandmail.com/news/british-columbia/bc-cities-clamp-down-on-short-term-vacation-rentals/article35325431/?ref=https%3A%2F%2Fwww.theglobeandmail.com&service=mobile

Some interesting thoughts here in relation to bringing unsanctioned rentals under control, stuff like special zoning requirements, charging property taxes at the business rate instead of the much lighter residential rate, and even putting a cap on the overall number of operations permitted within a city. This doesn't bug me a bit, those entering the short term rental game to make a quick buck should be on the same playing field as the mainstream accommodation industry.

[seewood]

Good point fluffy..

If jurisdictions would tax those with short term rentals, vacation rentals and Air B&B for example, as a business that they are, ( 1.4 times residential) perhaps some might just reevaluate the benefits.

Still going to have rental issues with low wages and the value of a building now a days and the rate of return on that investment plus taxes, insurance and the ongoing maintenance with the rental unit. Let alone the constant threat of dealing with lousy tenants and inevitable head banging exercise of dealing with the RTB.