Many Alberta landlords are telling me they are considering a rent increase this year simply due to rising expenses?
Last year I know a number of property owners in Calgary, Airdrie, Strathmore and Drumheller (both commercial and residential) who ended up pricing themselves out of the market and some of them are now paying utilities on
Yes, if you have a gross lease, these operating costs can eat into profits, but unless you see what the rest of the market is doing I recommend you tread cautiously.
These rising costs include such items as electricity, water, property taxes, condo fees, repairs and more. The more houses or buildings you own, the larger the impact. Owners are considering passing the cost down to their
renters through a rent increase.
To help you determine the best course of action, I recommend you do a current rental market evaluation for your rental property,
This evaluation will include:
1. Analysis of your current market competition
2. Rental market vacancy rates specific to your area and property type (SE Calgary light industrial, Downtown Airdrie Retail, North Strathmore 2 bedroom Residential, etc).
3. An overview of current renter activity to determine mobility and price sensitivity.
Feel free to call or email anytime to discuss your situation and see how our Real Estate Team can help.
Osborne Robert (Bob) Sheddy