1890 replies to this topic

[Nparker]

The law of supply and demand at its most obvious.

[Sparky]

I think it is a requirement now that before any type of building envelope work begins, a sample of all of the surfaces that are going to be disturbed or penetrated be sent for testing.

[spanky123]

The law of supply and demand at its most obvious.

 

Another example of a failed rent control policy. For years rental prices were held artificially low and now that there is new inventory and owners are reno-victing properties we are catching up. Instead of a manageable market increase year over year we are getting much greater changes that people are unable to absorb.

[Mike K.]

A laissez faire attitude by too many landlords has more to do with low rates than rent controls.

 

Too many landlords simply chose not to, or forgot to, or whatever, to raise rents over the last decade. Plenty of folks paying $1,000/month in 2005 were still paying close to that up until 2015.

 

If a landlord utilized the full annual rental increase amount allotted between 2005 and 2016, that $1,000/month rent would be sitting at approximately $1,400/month, but the reason why many landlords didn't raise rents is because nobody foresaw that we'd be in the situation we're in and a $1,000 apartment would now easily fetch $1,400.

 

Hindsight is always 20-20, but I just can't buy the rent control argument, certainly not if the landlord hasn't exercised their annual rental increase allotment. What is more palatable, however, is the "damn, I could be getting more rent right now, these rent controls suck" argument.

[Mike K.]

I just ran the annual (actual) numbers between 2005 and 2017. A $1,000/month apartment in 2005 could now be sitting at $1,543/month if the annual rental increase allowances were utilized by the landlord.

 

That $1,000/month apartment might actually not even fetch $1,534/month in this market, and may not move for any more than $1,400/month. A $2,500/month home could now be renting for $3,858/month.

 

Rent controls are a problem when the market explodes, but they're designed to protect renters when these situations arise. On the flipside, many landlords do not increase rents out of concern that they'll lose good tenants when the market is not working in their favour. But are rent controls keeping them from raising rents? No.

[lanforod]

^ a lot of landlords, myself included, don't raise rents as much when you have a good tenant. When that tenant does leave eventually, fair game to raise to match the market. I prefer a great, long term tenant over an extra $500. I do raise rent a bit to keep pace with my costs (ie. higher taxes and strata fees), but the amount we are permitted to raise annually typically outstrips how much my costs go up.

I don't think this applies as much to apartments, but more to condo rentals.

[VicHockeyFan]

Ya, some landlords seem odd.  They love the fact they get 40 applications for a suite. Instead of hiking the rent another $200 and then dealing with 3 or 4 applications.

[Mike K.]

^ a lot of landlords, myself included, don't raise rents as much when you have a good tenant. When that tenant does leave eventually, fair game to raise to match the market. I prefer a great, long term tenant over an extra $500. I do raise rent a bit to keep pace with my costs (ie. higher taxes and strata fees), but the amount we are permitted to raise annually typically outstrips how much my costs go up.

I don't think this applies as much to apartments, but more to condo rentals.

 

Oh, for sure. I get that and I think it's far easier to maintain a quality tenant at a static rate than run the risk that they may want to jump ship, but that's the business side of the whole equation. There's always risk that you could force them out, or you could profit more.

[lanforod]

Ya, some landlords seem odd.  They love the fact they get 40 applications for a suite. Instead of hiking the rent another $200 and then dealing with 3 or 4 applications.

That I don't get at all. My last vacancy, I put my place up for about $50 more than what I saw most places going for. Got a handful of applicants, not 50. This is in New West, so also a very tight rental market. Now I have great tenants in their second year, and my rent is at market value now. 

[Mike K.]

Although, out of those 40 tenants you have a greater chance of finding one that you feel will be a good fit. Sometimes the folks with the most money are not necessarily the folks you want to be renting to.

[Nparker]

...Sometimes the folks with the most money are not necessarily the folks you want to be renting to.

Especially if they pay their security deposit(s) and rent with wads of cash made up exclusively of $20 (and smaller) bills. RED FLAG! 

[AllseeingEye]

So I was at the pub yesterday, and got to talking to a construction worker that comes in from time to time.  Older guy, in his 50's, but clean cut, non-smoker.

 

He's very new in town, came from 4 years work in Fort Mac, works for a major construction company here, I will not name here.  Journeyman carpenter.

 

And he's living at Sally Ann, as he can not find a place under $1400 anywhere.  So I said, hold on, I know a guy that works front desk at Red Lion, they have long-term suites this time of year.  Contacted him, and wowza, they do, but there are all full.

 

Capital City Center (1961 Douglas St.)  wants $1400/mo.  He had an appointment to see the old Travellers at kitty-corner to White Spot, where they want $900 I think he said.

...gee thanks for that. Unless you're 16 since when did someone in their "50's" become 'older'? I will get to the grave on my own sweet time I don't need your help VHF.....

 

Yes just a couple of weeks ago I was looking at rents for 1-2 bedroom apts in the Core for an out of town friend thinking of re-locating here, and I was quite shocked at how much rents have increased since I last rented ( a bright 650 s/f 1-bedroom on the 4th floor corner of Goodacre Towers South, directly across from Beacon Hill park, cost me $815/mo circa 2006).

[LeoVictoria]

So I was at the pub yesterday, and got to talking to a construction worker that comes in from time to time.  Older guy, in his 50's, but clean cut, non-smoker.

 

He's very new in town, came from 4 years work in Fort Mac, works for a major construction company here, I will not name here.  Journeyman carpenter.

 

And he's living at Sally Ann, as he can not find a place under $1400 anywhere.  So I said, hold on, I know a guy that works front desk at Red Lion, they have long-term suites this time of year.  Contacted him, and wowza, they do, but there are all full.

 

Capital City Center (1961 Douglas St.)  wants $1400/mo.  He had an appointment to see the old Travellers at kitty-corner to White Spot, where they want $900 I think he said.

 

So a 50 year old journeyman carpenter who worked in Fort Mac, then works for a major construction company here at a time when everyone is scrambling for qualified trades can't afford $1400/month in rent?   Yes it's a lot compared to what it used to be, but something doesn't add up.  Maybe too much time at the pub?

Edited by LeoVictoria, 14 February 2017 - 09:04 PM.

[VicHockeyFan]

So a 50 year old journeyman carpenter who worked in Fort Mac, then works for a major construction company here at a time when everyone is scrambling for qualified trades can't afford $1400/month in rent?   Yes it's a lot compared to what it used to be, but something doesn't add up.  Maybe too much time at the pub?

 

He seems sincere, normal.  Perhaps he can afford it, he's just surprised it's so high.

[Sparky]

Sometimes 50 year old men are trying to support two homes. The one they live in now, and the one they used to have that is still full of children.

[spanky123]

Sometimes 50 year old men are trying to support two homes. The one they live in now, and the one they used to have that is still full of children.

 

^ Thought that you were going to say ex-wives :-)

[VicHockeyFan]

Sometimes 50 year old men are trying to support two homes. The one they live in now, and the one they used to have that is still full of children.

 

That's possible, never spoke about family, but he definitely has none here.

[jonny]

That's odd because the average rent in Fort Mac was something like $2,000/month in the boom times. Here is cheap in comparison.

[sdwright.vic]

My buildings have apartments for $1K a month. There are many in Esquimalt that are? Is he just not expanding his search out of donwntown? I even looked at the brand new Hudson town and it was just under $1400.

[VicHockeyFan]

Did I ever tell you guys about when I had an apartment above me, where the spare bedroom - right above my home office - housed two lemurs?  I tell ya, those critters are active.