Alberta Landlords Respond to Low Prices By Offering Free Rent
Renting may have just gotten a little more affordable. Alberta’s falling oil prices have already driven down Calgary and Edmonton’s average rent, but landlords are still struggling to snag long-term tenants. So they’re putting their best marketing strategies forward and offering tenants one month of free rent if they commit to a 12-month lease.
But why do landlords need to push this gimmick? Mark Hawkins, the owner of RentFaster.ca, a major Alberta rental website, says rental prices rise and fall as oil prices do. So, as the Financial Post reports, landlords face a couple challenges as the province labours to recover from a weak resource sector. The first challenge is supply.
The number of available rental properties in Alberta’s big cities has soared in the last year. Edmonton’s house rentals have spiked by about 73% while apartment listings have increased by 26%. In Calgary, available house rentals have gone up by 64% and the number of apartment rentals are 43% above last year’s numbers.
Meanwhile, rent is tumbling. Calgary’s average rental prices have already dropped by 10%. In Edmonton, the average rent for a house is down by 8%. For an apartment, rent is down by 2%. But despite lower rent, landlords have been losing a segment of their market: oil and gas consultants. As the oil price dips, fewer consultants are making the temporary move to Calgary.
Landlords already have to worry about finding the right tenant -- one that won’t destroy the house. But as vacancy rates rise, Calgary and Edmonton landlords seem to be more concerned about simply filling their units. So they’ll tout unconventional rent promotions if they have to.
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