Vacancie rates Edmonton

[gwasser]

I own some rental units in a 15 unit apartment building near Queen Mary Park in Edmonton. 13 units are in a rental pool. Currently 6 units are vacant or a vacancy rate of nearly 50%! I don`t know the vacancy rates of Edmonton, I figure around 10%, but I may be wrong.

Up to now I was happy with the rental manager; in a previous downturn, 4 or 5 units were vacant and the on-site manager was fired by the property manager. After that our occupancy shot up. Rent is currently around $900 per month per unit which have two bedrooms and approx. 700 sqr ft. One of my units was lately vacated by some long term tenants (approx 12 yrs) - they were a bit strange and the PM evicted them with the unit basically demolished. The renoes were approx. $23K for a unit worth around 120K.

So now I am really wondering with newly renovated units (the other was renovated last year for $6K) and a rent of $900 why do we have 50% vacancy? What is Edmonton`s vacancy rate and any idea about rent numbers around Queen Mary Park?

Some enlightenment is appreciated.

 

[Thomas Beyer]

QUOTE (gwasser @ Oct 14 2009, 12:51 PM) ..What is Edmonton`s vacancy rate and any idea about rent numbers around Queen Mary Park?

Some enlightenment is appreciated.
We have seen a strong UPTICK in rents the last few months in Edmonton .. 7% more or less .. trending towards "less"

Why 50% in your building:

a) QMP is not the best (but also not the worst) part of town, and/or
b) your building might be ugly and/or
c) the manager might not focus on it and/or
d) the onsite manager is poor or on drugs and/or
e) 13 units is a small number for a rental pool and/or
f) the PM makes too little money
g) the suites are old
h) the common area is old/ugly
i) many new condos being filled by renters with huge incentives by developers that could not sell their brand new units

23K for a full reno sounds too high too .. 10-12K would do a decent job for QMP !

Any or more likely a combination of these factors play a role !

50% certainly is too high !

==> FIND A NEW PM ASAP (which is hard for 15 units) !!!

 

[gwasser]

Thanks Thomas,

looks like were going to look for a new property manager. We`ll probably try to bundle a number of properties so as to get some attention from prospective PMs.

Godfried

 

[Thomas Beyer]

QUOTE (gwasser @ Oct 15 2009, 12:37 PM) ... We`ll probably try to bundle a number of properties so as to get some attention from prospective PMs.
..
a good idea !!

and: don`t buy into a rental pooled 13 suiter next time !! too small !! 40 or more is best !!

 

[gwasser]

I bought 5 yrs ago, the price has doubled, so I won`t complain. But... I definitely see your point. Ah..., and so we learn.

Also illustrates Don Campbell`s point: When invested during the Tiger Woods years any moron could make money`. Eh... not that I consider myself a mor...