It’s hard to believe that we’re already halfway through the year. In 2019, we have had some interesting developments in the Vancouver rental market, and we believe it remains an ideal place for investors to continue buying homes that they’ll rent out.
We believe that one of our responsibilities as professional Vancouver property managers is to keep you informed about the trends in the real estate market and how they might impact your rental property. Today, we’re sharing our rental forecast for investors.
The rental market is still fairly robust although we have seen some slowing. There has been a bit of an increase in the number of days on market. This means it’s taking a little longer to rent units out to qualified tenants. We believe the market can handle this slight slowdown, and well-maintained homes in desirable neighborhoods are still going to be rented quickly by great tenants.
Rent increases are slowing a bit too, although that isn’t necessarily bad news since they aren’t dipping. In our forecast for 2019-2020, we believe that you might still see rents climbing upward, just in a less dramatic fashion. They will come up a bit, but maybe only by a few percentage points. Rental increases of between $50 and $75 per month seem to be the normal right now. You’ll still be able to raise your rents when tenants renew, and you can set the rental rate for newly vacant properties slightly higher than where they were a year ago.
With the timeline of getting your rental property off the market growing a bit longer, this is a good time to continue to upgrade your units. We’re seeing a lot of newer units coming onto the rental market, especially in the multi-family sector. So, if you want to compete for great tenants, it’s even more important for you to offer a property that’s modern, clean, and updated. If you’ve noticed that your property has aged a bit, give it some cost-effective cosmetic improvements.
Get rid of old and aging curtains and drapes. Mini blinds are far more attractive to tenants and easier to maintain and clean. You could also upgrade your lighting. When you change to LED lights, the unit will look lighter and brighter, and tenants will notice. You could even change the flooring by adding carpet or wood. You want to remain competitive in the market.
One of the best ways to increase the profitability of your rental property is with professional Vancouver property management. We have the tools and resources to help you earn more and spend less on your investment. That expertise is valuable in any rental market, whether it’s strong or weakening.
If you’d like to talk more about what the future holds for investors and landlords, please contact us at SunWorld Group Property Management. We’d be happy to tell you more about what we know and what we expect.