Fort saskatchewan vacancy rate

[alexh]

Simple question, im turning to the best forum here to get an answer.

Is there a demand for rental properties in Fort saskatchewan?

New half duplex 1300 sq feet & 1364sq feet
Need to rent for $1600 to cash flow.

I heard that there is a low demand for rentals there? is this just hype?

 

[smack123]

QUOTE (alexh @ Sep 30 2008, 09:57 PM) Simple question, im turning to the best forum here to get an answer.

Is there a demand for rental properties in Fort saskatchewan?

New half duplex 1300 sq feet & 1364sq feet
Need to rent for $1600 to cash flow.

I heard that there is a low demand for rentals there? is this just hype?


I own a 3 bdr. bungalow in Fort Saskatchewan that I have been renting for the past 14 months through a FS property management company. It rented last August in less than 2 weeks, and again this Sepotember in less than a week. In spite of the slow-down in the "upgrader alley" there is still a lot of activity going on (Shell, Fort Hills, etc.). Personally, I think FS is a great rental market, compared to other Edmonton area bedroom communities (Leduc, Spruce Grove, etc.) but others with more experience and knowledge might tell you otherwise. As for your rent, $1600 seems about right to me, but check the Fort Saskatchewan Record newspaper online, classifieds... I believe there are a few similar homes available for rent and you may be able to get an idea of rents for similar properties.

 

[alexh]

QUOTE (smack123 @ Sep 30 2008, 11:06 PM) I own a 3 bdr. bungalow in Fort Saskatchewan that I have been renting for the past 14 months through a FS property management company. It rented last August in less than 2 weeks, and again this Sepotember in less than a week. In spite of the slow-down in the "upgrader alley" there is still a lot of activity going on (Shell, Fort Hills, etc.). Personally, I think FS is a great rental market, compared to other Edmonton area bedroom communities (Leduc, Spruce Grove, etc.) but others with more experience and knowledge might tell you otherwise. As for your rent, $1600 seems about right to me, but check the Fort Saskatchewan Record newspaper online, classifieds... I believe there are a few similar homes available for rent and you may be able to get an idea of rents for similar properties.


Thats a bit comforting thanks for the tips.
Anyone else i welcome your feedback,,

Go REIN

 

[GSI]

QUOTE (alexh @ Sep 30 2008, 10:35 PM) Thats a bit comforting thanks for the tips.
Anyone else i welcome your feedback,,

Go REIN

Hi Alex,

I concur, the market is strong out there. Perhaps the same as Edmonton vacancy rate. I`ve been fully rented out there for 3 or 4 years. I`m charging a low $1400 for a 1/2 duplex. But, I would charge $1600 if i put in new tenants. I will continue raising the rents on those units as well to keep pace with the market.

Who is the PM that you know out there?

Thanks,

 

[invst4profit]

What is the average price for a half duplex. To be able to cash flow at $1600/month rent you would need to purchase at less than $150,000. Is that in the ball park?

 

[alexh]

Pls correct me if im wrong,

But its more in the 275,000 range.(new construction)

Although expenses are cut dow drastically in my case.

Brand new developpement with no expected major repairs for a few years.
Property manager will be myself saved 8% of the rent

can tolerate up to 5.5 interest rate without raising the rent.

taxes approx : 2000
insurance : 300
utilities charged to tenants.

 

[Thomas Beyer]

QUOTE (alexh @ Sep 30 2008, 10:57 PM) Is there a demand for rental properties in Fort saskatchewan?
yes there is !

WHY NOT ? Do you honestly believe every person in Ft. Sask owns their own home ?

 

[invst4profit]

275,000 @ 5.0% 30yr = $1467/month
Conservative expences at 35% = $560/month
Mortgage $1467
Expences $560
Rent $1600

Profit/loss - $427/month

 

[chrismccallum]

You have to also factor into your Math that there is a 20% DP on the Principal. That would bring the total down to 220K. Taking it from there would reduce the mortgage payment by quite a bit, thus making the monthly cash flow a bit easier to swallow.

- Chris

 

[PeterAugustin]

I have noticed based on calls I am getting for prospective tenants, that many are not interested in the new builds because they are too cookie cutter and have small living rooms compared to older, albeit renovated dwellings. Also, I have noticed that the competition is letting rents slide a little also, so the market in some cases is softening. I would check the last few weeks worth of classifieds in the F.S. paper and see if similar properties are being listed for several weeks or if new ads are always coming on in each new edition of the paper.

To Invst4Profit, I think your numbers are conservative, and are more in line with an apartment where utilities are paid by the owner. !/2 duplexes usually require the tenant to pay the utilities and many don`t have condo fees either. My expense ratio is running at about 25% with condo fees. I am also financed 100% with a 20% downpayment from a LOC. I am breaking even at $1425 rent on a slightly cheaper property (including the LOC interest in my calcs).

 

[alexh]

That is an interesting point, the new builds are quite cookie cut, and usually only suit a certain profile, thats what i was little worried about, not having the option to customize living space as much.

I think this is not an easy decision, given all the circumstances. Any better deals im willing to take a look...

Thanks Glenn Simmon, my property manager would be a well rounded tool man friend of mine, I called a company in FT Sask. And was quoted to price @ $1500 to get it rented fast.

 

[invst4profit]

A down payment is opportunity money lost. Every dollar has a income value therefore calculating real cash flow should be based on 100% financing.
Condos may have lower expenses however statistics will support average expenses of 40-50% on every rental property long term (utilities paid by renter). Your expenses may be lower today but they will hit the historic average over the term guaranteed.

 

[BRYAN17]

QUOTE (smack123 @ Sep 30 2008, 10:06 PM) I own a 3 bdr. bungalow in Fort Saskatchewan that I have been renting for the past 14 months through a FS property management company. It rented last August in less than 2 weeks, and again this Sepotember in less than a week. In spite of the slow-down in the "upgrader alley" there is still a lot of activity going on (Shell, Fort Hills, etc.). Personally, I think FS is a great rental market, compared to other Edmonton area bedroom communities (Leduc, Spruce Grove, etc.) but others with more experience and knowledge might tell you otherwise. As for your rent, $1600 seems about right to me, but check the Fort Saskatchewan Record newspaper online, classifieds... I believe there are a few similar homes available for rent and you may be able to get an idea of rents for similar properties.

Hello Smack 123 and other Fort investors,
I also own 4 units in the Fort and currently have a property manager from edmonton handling my affairs. I`m less than impressedd with their preformance and looking for a switch. Do you mind telling me who you are using? and what you think of them. Cheers!
Bryan

 

[smack123]

QUOTE (BRYAN17 @ Oct 7 2008, 07:09 PM) Hello Smack 123 and other Fort investors,
I also own 4 units in the Fort and currently have a property manager from edmonton handling my affairs. I`m less than impressedd with their preformance and looking for a switch. Do you mind telling me who you are using? and what you think of them. Cheers!
Bryan


BRYAN17,

Wayne Land @ Oakwood Property Management, 780-998-7368.

I have been using them for 14 months now and they have been great, all depositis on time, monthly statement in the mail, found good tenants twice. Nothing bad to say about them.

 

[BRYAN17]

QUOTE (smack123 @ Oct 8 2008, 01:22 PM) BRYAN17,

Wayne Land @ Oakwood Property Management, 780-998-7368.

I have been using them for 14 months now and they have been great, all depositis on time, monthly statement in the mail, found good tenants twice. Nothing bad to say about them.

Thank you for the info. Last time I looked at one of Oakwoods packages, I think they were charging around 12% ? Is this still the case? I`m not overly worried if they are worth it but I`m curious to know what they are charging today. Look forward to your reply. Cheers!

 

[smack123]

QUOTE (BRYAN17 @ Oct 9 2008, 08:05 PM) Thank you for the info. Last time I looked at one of Oakwoods packages, I think they were charging around 12% ? Is this still the case? I`m not overly worried if they are worth it but I`m curious to know what they are charging today. Look forward to your reply. Cheers!


My contract with them is $85 per month or 11%, whichever is greater.

They are the only PM company I have ever dealt with, but I really have nothing bad to say. The house has been rented twice in 1 4 months and both times they had a tenant within 10 days of advertising. They are prompt with all of their correspondence, andswer all my questions, and by all accounts, and perhaps most importantly, both of my tenants have been very good and have taken very good care of my property, which is a nicely updated 3-bdrm. bungalow in Pineview.

Just my $.02

 

[stepchuk]

To answer your question regarding there being a demand for rental properties in the Fort, the answer in my opinion is most definetely yes. We own a couple places in town and they rent out very quickly for generally very close to Edmonton rents. The tenant profile in the Fort is quite good as well. I would think that $1600 is a realistic figure to base your numbers off of. If you could find a place with a basement suite for around the same purchase price ($300k ish-they exist in Old Fort Saskatchewan near downtown), you should be able to pull $2k out of it ($1200 up and $800 down), and dramatically improve your cash flow. That`s where I would focus.

Chris