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Screening Tenants for Pets

After reviewing the pros and cons of allowing pets in your multifamily property, you may have decided that the increased revenue and attracting and retaining more tenants outweighs the cons.  To attract the right type of pet owner, you will need to screen your tenants to ensure that they are responsible and that their pets will not damage your building.  As the premier agent for apartment buildings for sale in British Columbia, here is an outline of how to screen your tenants and their pets.

Restrictions

Before even beginning to screen your tenant, you may want to think about placing restrictions on what type of pets you will and will not allow into your multifamily property.  These restrictions can include:

  • Size of dog.
  • Dog breeds – such as pit bulls or other perceived aggressive dog breeds.
  • The number of pets allowed in one suite.

By placing restrictions on your tenants and monitoring the type and number of pets that are allowed, you may save yourself a lot of problems down the road.

Create a list of Questions

A thorough screening starts by asking the right questions.  Some important questions that you should ask a possible tenant include:

  • How many pets do you own?
  • What is the pet’s breed and its size?
  • What is the age of your pet?
  • How long have you owned your pet?
  • Does your pet have its updated shots and vaccines?
  • Is your pet fixed?
  • Has your pet ever acted aggressively towards other animals or people?
  • Is your pet trained?

By getting answers to these questions, you will be in a better position to decide if this is a tenant and pet that you want in your multifamily building.

Identifying a Responsible Pet Owner

Besides asking pertinent questions about the pet, there are other ways to identify a responsible pet owner.  When meeting the owner, be sure to watch their body language and whether their pet listens to them and how friendly the pet is to strangers (you).

Here’s the Deal:

Before making any final decision about the tenant, remember to contact references and ask them the same questions as you asked the tenant.  You should also check with prior landlords, verify their income and place of employment and do a credit and background check.

Creating a Lease

Once you feel that you have thoroughly screened a tenant, it is time to create a lease.  When presenting a lease, it is important to address the following points:

  • Rent amount.
  • Pet damage deposit amount.
  • Nonrefundable pet fee.
  • Require renter’s insurance from the tenant to cover any damages or other problems such as dog bites.
  • Other pet rules such as picking up after their pet and disposing of waste in outdoor garbage bins only.

By screening and protecting yourself and the other tenants in a lease, you should be able to enjoy the pros that being a pet friendly multifamily property brings.  If you would like more information on how to create and implement a screening process for your property or are interested in some of the great multifamily investment opportunities that are available in and around the province, please contact me today.  I look forward to hearing from you soon.

 

 

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Pros and Cons of a Pet Friendly Policy

Deciding on whether you should allow pets in your multifamily dwelling can be a huge decision and a wide range of factors need to be considered before arriving at an answer.  Unfortunately, a fast or easy answer is not possible as there are both pros and cons to allowing pets.  As your premier agent specializing in apartment buildings for sale in British Columbia, I would like to present some of the pros and cons of having a pet friendly policy in your multifamily property.

Pros of a Pet Friendly Policy

Create More Interest

A pet friendly policy is a guaranteed way of generating more interest in your multifamily property.  In some cases, you will be able to attract up to 70% more possible tenants.

Increase rent

Not only does a pet friendly policy attract possible tenants, you as a property owner will also be able to ask for more rent.  This rent increase can be written into any rental policy with terms such as:

  • Non-refundable fees associated with pets.
  • An increase in a damage deposit in case of pet destruction.
  • A monthly rent attached to the pet itself.

Longer Stays

Tenants in pet friendly properties tend to stay longer.  Part of this is because finding a rental that has a pet friendly policy can be difficult at best.  The other part of the reason is moving pets around (especially dogs) can be stressful on both the owner and the pet.

Cons of a Pet Friendly Policy

Damage

The one obvious reason why a pet friendly policy may not be ideal is the fact that the chances of incurring property damage will increase.  This can be offset with an increased damage deposit, but unfortunately wear and tear in each suite will increase if you allow pets in your building.

Noise

Pets can be noisy and upset other tenants in your building.  This disruption can lead to other non-pet owning tenants relocating to avoid the noise.  Again, if you are going to adopt a pet friendly policy, you may want to include the amount of noise or the number of complaints in the original rental agreement.

Allergies

With pets often comes allergies.  This is especially true of any long-haired cat or dog breed.  Allergens can spread from suite to suite via air ducts and will affect the common areas.  Be sure to notify the tenants that you are a pet friendly building, so that they can plan accordingly.

Before arriving at any type of decision, it is wise to weigh the facts to decide if a pet friendly policy is right for your multifamily property.  If you would like more information on this topic or are interested in viewing some of the new and exciting multifamily properties that are available, please contact me today.  I look forward to hearing from you soon.

 

 

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Rental Inspections – How Often is Too Often?

As a property manager, it is your responsibility to ensure that your tenants are satisfied and that the building is in great working order.  You will have to perform these responsibilities without becoming overbearing and nosy.  As your premier agent for apartment buildings for sale in the Lower Mainland, I would like to share with you when is the right time to perform rental inspections.

Put it in Writing

As a property manager, you have the right to inspect an apartment at any time.  However, you do not want to become overbearing or nosy as this can quickly sour a relationship with your tenant.  It is highly recommended that you outline your inspection policy in the lease agreement.  As a courtesy, you should give your tenants 24 hours’ notice and state why you intend to enter the apartment.  Check with local laws and bylaws to make sure that you are following all the necessary rules.

Moving In and Moving Out

A move in inspection is a must.  This inspection will allow you and the tenant to document any problems with the suite and ensure that both parties are happy with the condition of the apartment.

Moving day for a tenant is another mandatory time for inspection. Again, it will help you determine the condition of the apartment and if any damage has occurred.

Here’s the Deal:

Your tenants are likely to take better care of their apartment if they know that you will be doing these inspections.

Maintenance Needs

It is important that you also include in your lease agreement that you will be performing routine maintenance inspections.  This inspection is a great way to ensure that your building is not falling apart and will also keep your tenants happy, as you are looking out for their safety and well-being.  Things to look for when performing a routine maintenance inspection:

  • Mold and water damage around the kitchens and bathrooms.
  • If appliances are in good working order.
  • If the heating and cooling systems are in proper working order.

Questionable Conduct

Another thing to keep an eye out for is any type of questionable conduct that may be occurring in a rental suite.  This includes:

  • If you have a no pet rule and it has been outlined in the lease agreement.
  • Unauthorized occupants living in the suite, such as a family member or significant other.
  • Any type of illegal activity.

By following these general inspection guidelines, you should be able to keep your renters happy, your multifamily building in great shape, while at the same time respecting your tenants’ privacy.  If you would like more information on when to perform rental inspections or are interested in some of the multifamily properties that are available right now, please contact me today.  I look forward to hearing from you soon.

 

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3 Proven Ways to Increase Your Multifamily Revenue

Like any investment, the end goal of your multifamily property is to generate revenue.  As the premier agent for apartment buildings for sale in British Columbia, I would like to share these 3 proven ways how you can increase the revenue on your multifamily investment.

Increase Rent

Study the rental markets in your area and set your rates accordingly.  You may want to consider adding incentives before raising rents.  Smart technology, new flooring or an accent wall can make a raise in rent more palatable for your tenants.  Before increasing any rent, make sure that you are aware of the maximum increase allotments or if your property is in a rent controlled area.

Here’s the Deal:

Be cautious about raising rents too quickly as turnover can be quite costly and time consuming.  Tenant retention can be as important to your stream of revenue as rent increases – act accordingly.

Increase Occupancy

It is estimated that each month that you have a vacant unit in your property, you are losing 8.3% of your potential yearly income.  These losses can add up quickly and greatly impact your annual revenue, especially if you have more than one unit vacant.  The minute one of your units becomes vacant, act quickly to get it back on the rental market.  Make sure to:

  • Have your lead maintenance worker ready to do any needed repairs, painting or other jobs as soon as the tenants move out.
  • Begin placing a wide variety of ads the day after the old tenants have moved out.
  • Try to match interest to your suites to the rental market. If you are not getting any interest from possible tenants, you may need to lower your rental price or add other incentives.

Add Revenue Streams

Look for other ways to increase your monthly revenue stream.  Some excellent ways to not only add revenue, but also increase the value and interest in your multifamily property include:

  • Storage lockers.
  • A bike room.
  • Upgraded features and appliances – smart thermostat, in suite laundry etc.

By boosting occupancy and increasing rent while looking at adding additional revenue streams will help to provide additional income to your multifamily property.  If you are interested in other ways to increase your investment profits or would like to see some of the new and exciting multifamily properties that are available around the province, please contact me today.  I look forward to working with you soon.

 

 

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2020 Mortgage Rate Forecast

Mortgage Rate Outlook

While those key benchmarks were falling, Canadian lenders delayed passing on savings to borrowers as the B20 mortgage stress test stifled growth in mortgage credit. However, as we move into the traditionally competitive spring housing market, mortgage rates are heading downward. The average contract rate for 5-year mortgages has declined about 30 basis points from its peak in 2018, reaching 3.44 per cent in March. Unfortunately, this still means a stress test rate of 5.44 per cent, even for the highest quality borrowers.mortgage rate forecast 2020

The once bright outlook for the Canadian economy darkened toward the end of 2018 amidst disruptions in Alberta oil production and a policy-induced slowdown in the Canadian housing market. This slowdown, along with global economic growth concerns, prompted a dramatic revision in market expectations for future Bank of Canada rate tightening. As a result, key benchmarks for bank borrowing costs plummeted, reversing course after a year of steady increases.

Canadian interest rates 2019While contract rates are falling, the posted 5-year qualifying rate for insured mortgages has not budged in 11 months at 5.34 per cent. If 5-year bond yields sustain at their current level, a 5-year qualifying rate under 5 per cent should follow suit.

BCREA is forecasting that lower mortgage rates will prevail for all of 2019 with the average 5-year contract rate falling to 3.30 per cent through the spring and early summer and the 5-year qualifying rate finally moving below 5 per cent for the remainder of the year. While there is an outside chance of a rate cut from the Bank of Canada, BCREA baseline is for the Bank to remain on hold in 2019. Therefore, no change is forecast in the prime rate, from which variable rates are discounted.

Economic Outlook

The Canadian economy sputtered to the finish line in 2018, growing just 0.4 per cent in the final quarter of the year and contracting in the final month. This weak hand-off to the first quarter, drag from lower Alberta oil production and the ongoing negative impact of the mortgage stress test, compounded by rising interest rates last year, mean that slow growth will continue into the first half of this year.

BCREA expects the Canadian economy will expand just 1.5 per cent in 2019 as it struggles to rotate from consumption and residential investment led growth to export and business investment led growth. The latter will be a particularly difficult shift as the Alberta energy sector continues to face significant challenges.

Of note, the Canadian yield curve has inverted, with the 10-year rate falling below the yield on a 3-month Treasury bill. This means that the average bond market investor expects an economic slowdown, substantial enough for the Bank of Canada to decrease its policy rate. While not always a reliable indicator of recession, an inverted yield curve does often portend slower growth ahead.

slowing gdp growth from residential sector canadian yield curve inversion

Interest Rate Outlook

As 2018 drew to a close, it was widely expected that the Bank of Canada would continue on its rate tightening path this year, with the ultimate goal of returning the overnight rate to its “neutral” level of between 2.5 and 3.5 per cent. While slowing economic conditions have caused those expectations to be dramatically revised, the Bank’s ultimate goal remains. Policymakers would very much like to see the Bank’s overnight rate return to its estimated neutral level, meaning an interest rate that stabilizes Canadian inflation at its 2 per cent target. Our own estimate of the neutral rate is toward the low end of the Bank’s range. Using a standard model, BCREA estimates that the real neutral rate, adjusted for inflation, is close to 0.5 per cent. Adding a 2 per cent rate of inflation brings the estimated neutral Bank of Canada rate to 2.5 per cent, or 75 basis points from where it stands today.

What is a normal 5-year mortgage rateFrom that neutral rate, one can build an estimate of the neutral, or long-run, 5-year mortgage rate and, more importantly, one can gauge what the B20 stress test rate will be when the Bank of Canada returns to neutral. From that exercise, it can be determined that when the Bank returns to its preferred level of policy rates, Canadians with more than 20 per cent in home equity will be stress tested at a rate much higher than what we estimate as a long-run equilibrium mortgage rate. Given the disruption caused in Canadian housing markets by the stress test at the presently lower rates, the stress test is not likely to be sustainable in the long-run as currently constituted.

Highlights

  • Mortgage rates falling to start 2019.
  • Temporary slowdown in the Canadian economy or something more serious?
  • How high? Mortgage stress test and the neutral rate.

(Source: BCREA. Reprinted with permission)

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Tips to Optimize your Multifamily Suite’s Value and Appeal

When it comes to increasing the appeal of your multifamily property, the overall perception of the dwelling is key.  The more appealing your property is both inside and out will determine what types of tenants you attract as well as the monthly rent that you can charge.  As the premier agent for apartment buildings for sale in the lower mainland, I would like to share the following ways on how you can optimize the value and appeal of your multifamily property.

Increase Visual Appeal

Attracting tenants all starts with increasing the visual appeal of your multifamily property – both inside and out.  To make the exterior of your property more visually appealing, try the following tips:

  • Repaint the exterior of the building using bold colours or two colours that provide a striking contrast to each other. Try to make corners and other symmetrical features stand out.
  • Landscape the outside area around your multifamily property and try adding plants and shrubs. Keep the planting scheme symmetrical and even on both sides of the entrance way.

The suites and interior of your building are where you will want to direct most of your efforts to increase perceived value and create appeal.  We will discuss various ways to achieve this goal next.

Focus on Touch Points

Tenants seem to appreciate added value on tangible items or things that they can touch.  Think about upgrading the door knobs in each suite as well as features such as:

  • A smart thermostat that gives tenants more control over the heating and cooling in their suite while saving you money on energy costs.
  • Added security features that tenants have control over.

Provide Continuity

Another focal point when trying to provide added value is to focus on the continuity of each suite.  For example, how a kitchen is laid out, the size of each appliance and even the colour and coordination of each appliance can go a long way in providing the necessary visual ascetics that tenants are looking for.

Another example of in suite continuity is flooring.  Try to keep the flooring the same in every room in each suite.  Vinyl flooring has come a long way and is an inexpensive alternative to hardwood.  The right product will give the appearance of a far more expensive option and give the tenant that sophisticated look they desire.

Open up the space

Everyone wants open space and as much liveable space as possible.  Why not give your tenants that wish and open up each suite as much as possible?  There are simple tricks that can give the illusion of more space and still add a touch of class and appeal to any room.  Examples include:

  • Install a glass shower. This increases the view of a larger visual space and adds to the appeal of your property.
  • Another option is to install bathroom cabinets 12 inches off the floor. This provides a continuous sight line and allows for a full visual view of the entire floor, giving the illusion of a larger space.

These helpful tips will allow you to create more appeal in your property while increasing the perceived value of your suites.  If you are interested in other ways to add appeal and value to your multifamily investment or would like to see some of the new and exciting apartment buildings that are available, please contact me today.  I look forward to hearing from you soon.

 

 

 

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CLI Points to Flattening Commercial Real Estate Activity in 2019

The BCREA Commercial Leading Indicator (CLI) declined by 1.8 points to an index level of 134.5 from the third to the fourth quarter of 2018. Compared to this time one year ago, the index is about 1 per cent lower.

Slowing provincial economic activity continued in the fourth quarter, led by weak retail sales and a fourth quarter drop in manufacturing shipments in the forestry sector. Adding to those declines were falling manufacturing employment and a jump in short-term credit spreads. As a result, each component of the CLI posted a decline in the fourth quarter. Recent volatility in the CLI has left the underlying trend in the CLI flat over the past two quarters, signalling a slower growth environment for commercial real estate activity.

Following several years of robust growth, the BC economy slowed in 2018. The economic activity component of the CLI reflected that slowdown, posting declines in three out of four quarters in 2018. A major deceleration of retail sales growth, from over 9 per cent in 2017 to just 2 per cent in 2018, and stalled growth in the wholesale trade and manufacturing sectors were the main drivers of the lower economic activity component in the fourth quarter.

Employment in key commercial real estate sectors was mixed in the fourth quarter. Average employment in the office sector was up by 2,200 jobs from the third to the fourth quarter with gains concentrated in the professional, scientific and technical services industries. The CLI measure of office employment now sits at an all time high, which signals strong future demand for office space. Manufacturing employment, however, declined by 4,500 jobs and is now at its lowest level since the first quarter of 2017.

The CLI’s financial component was also lower as short-term borrowing costs jumped and the benchmark for Canadian REIT prices fell along with the wider equity markets at the end of 2018.

Q4 Highlights:

Economic Activity: Retail sales increased 0.7 per cent after adjusting for inflation in the fourth quarter but were just 2 per cent higher in nominal terms for all of 2018. Wholesale trade fell for a second consecutive quarter, declining 2.1 per cent in real terms in the fourth quarter. Sales in the manufacturing sector also fell for a second straight quarter, down 2.6 per cent.

Employment: The benchmark index for Canadian REITs declined 2.5 per cent to end the year, dragged lower by the correction in global equities that occurred at the end of 2018. Heightened credit risk towards the end of the year also caused short-term credit spreads to widen to their highest level since 2009.

Financial: The CLI employment component was dragged into negative territory as falling manufacturing employment offset rising job growth in the office sector, particularly for professional, technical and scientific services.

About the CLI

The BCREA Commercial Leading Indicator was designed to forecast changes in broad commercial real estate activity. Research shows that the variables that compose the CLI reliably forecast BC commercial real estate activity at a lag of two to four quarters. The index is revised each quarter due to revisions to the underlying data.

Variation in the Commercial Leading Indicator can be broken out into three distinct components:

  • The economic activity component of the CLI follows the overall trend in BC’s economy and reflects changes in economic variables shown to lead commercial real estate activity.
  • The employment component reflects changes in the commercial real estate environment, due to changes in the overall business cycle.
  • The financial component acts as an early-warning indicator from financial markets that could signal turning points in the commercial real estate market.

(Source: BCREA. Reprinted with permission.)

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The Bathroom – Your Next Renovation

Talk to almost anyone in the real estate world and they will agree that a bathroom renovation is a great investment.  In the case of multifamily properties not only will a bathroom renovation increase the overall value of your investment, it will also allow you to increase rent, while at the same time retain or attract new tenants.  As the premier agent for apartment buildings for sale in British Columbia, I would like to share why the bathroom needs to be your next renovation.

Features to Renovate

When it comes to renovating your property’s bathrooms, you will not need to do a floor to ceiling renovation to get the desired effect.  Instead, pick a few key areas and focus on modern design and quality products.  Below is a list of some of the areas that you should consider when performing a bathroom renovation.

Flooring

Look to replace your old bathroom flooring with either vinyl or ceramic tile.  This will give you a modern upscale desired look, while at the same time increasing the durability and lifespan of the flooring.  Replacing the flooring can also allow a rental increase as many tenants are quite happy to pay for this type of upgrade.

Here’s the Deal:

Quality flooring can transform a space.  Make this one of your bathroom renovation projects.

Bath/Tub/Sink

Upgrading your sink or faucet is an inexpensive way to add value to your suites, while at the same time saving on utility costs.  When you are upgrading your faucets make sure to replace them with smart faucets or energy efficient ones.

Upgrading your shower or tub will give your bathroom an ultra-modern look.  Many residents prefer a luxury shower over a tub.  If you choose to renovate your shower or tub, consider the following features:

  • Install glass or tiled walls to give your bathroom a hotel inspired design.
  • Consider installing a rain showerhead and ensure that it is low flow and energy efficient.
  • If the suite has 2 bathrooms, upgrade the master bathroom with a luxury shower and keep a tub in the main bathroom for children.

Lighting

Upgrading lighting in any room is always a great idea.  In regards to your bathroom, consider installing smart style lighting that is LED friendly to save money on your monthly energy costs.  Incorporate modern lighting ideas such as track lighting or decorative fixtures for a unique look.

Cabinetry

Replacing bathroom cabinets can be one of the most dramatic renovations.  Lighter colour cabinets will give a clean and modern look to any bathroom.  Change and update the cabinet’s hardware to match the desired look.  If you are on a limited budget, consider refacing the cabinets instead of replacing them.

Bathroom renovations are a wise investment for multifamily properties.  Regardless of what type of renovation you choose, it will keep your property modern and will attract and retain tenants as well as attain higher rents.  If you are interested in other smart renovations for your multifamily property or would like to see some of the new and exciting apartment buildings that are available, please contact me today.

 

 

 

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3 Ways to Reduce Vacancies in 2019

Perhaps you are new to multifamily properties or are looking to expand your portfolio.  Often, one of the most difficult parts of owning a multifamily property is attracting and keeping tenants.  As the premier agent for apartment buildings for sale in British Columbia, I would like to share some tips on how you can reduce your vacancies in 2019 and retain your tenant base.

Offer Incentives

If attracting the right tenant has been a challenge for you, think about sweetening the pot and offering a discounted rate or other incentives to fill your apartments.  Traditionally, middle income residents have the lowest vacancy and turnover rates, so offering a smart promotional plan that is going to attract this group may be a very smart business decision.

Promote these incentives online through various rental sites and offer virtual tours to allow would-be residents the opportunity to see your suites before committing.  Implementing smart strategies such as these will make your property stand out and should bring you a host of new tenants.

Invest in Features

No matter what type of specials you are offering or what the outside of your building looks like, the most important piece of attracting and retaining new clients is what condition each suite is in and what features they contain.  Certain amenities that each suite in your property should contain include:

  • A dishwasher and updated kitchen, with granite countertops.
  • Smart appliances that will save both you and your tenants energy and offer other additional functionality.
  • Hardwood or laminate floor instead of carpet.
  • In-suite laundry.

Offering some of these amenities will entice clients and will save you from providing costly and time-consuming, large scale renovations.  These features will also add monthly revenue as tenants are quite willing to pay extra for these added conveniences.

Community Connections

Another key piece in attracting and retaining tenants is offering a wide range of community connections as part of an overall wellness connection.  Some ways that your multifamily property can meet this goal include:

  • Add a community room where tenants can gather and visit or host various social events or holiday parties.
  • Add a fitness center, so residents can focus on their health and well-being goals.
  • Outdoor areas which can include outdoor cooking spaces with communal BBQ’s, children’s playgrounds and even green space where tenants can relax and enjoy being outside.

Other services that tenants are looking for include covered and reserved parking that is safe and well lit.  Another easy fix feature that is quickly gaining popularity is safe and secure package lockers.  As the popularity of online shopping increases, so too will the demand for this feature.  Be a frontrunner and establish a competitive advantage over other multifamily properties.

These simple tips should have you putting out your no vacancy sign and enjoying the full benefits of your new multifamily investment.  If you would like more tips on how to attract and retain tenants or are interested in some of the new and exciting multifamily properties available, please contact me today.  I look forward to working with you soon.

 

 

 

 

 

 

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Inexpensive Ways to Update Older Apartments

Looking around at the multifamily trends and the shifting demographics may make it seem that older apartments are not a relevant option for attracting the hard to please millennial crowd.  However, with the right renovations, even the oldest apartment building can reinvent itself and attract a wide range of tenants.  As the premier agent for apartment buildings for sale in the Lower Mainland, I would like to share the following inexpensive ways you can update an older apartment.

Low Cost Materials

Regardless of what type of renovation you are going to be undertaking, it all starts with finding the right materials.  Not all materials are equal and you will quickly find a large price gap between certain choices.  Although natural wood is trendy and quite an appealing material in today’s multifamily environment, this material is quite costly and difficult to maintain.

Luckily there are many low-cost alternatives that include:

  • Aluminum siding.
  • Concrete panels or pre-fabricated finished slabs (for counter tops).
  • Fiber board.
  • Porcelain tile.

If used right, these inexpensive materials can give any older apartment a makeover and create that ever-appealing contemporary look.

Increase Curb Appeal

Sometimes a new coat of paint just isn’t going to be enough to increase the curb appeal of your older multifamily property.  If you are looking for a change, start with choosing an inexpensive material such as aluminum siding or look at a combination of materials to get your desired look.

Regardless of what type of material and look you choose, trim can make all the difference.  If it is a contemporary look you are striving for then metal trim is a must.  Many architects use metal trim to create patterns or geometric shapes with contrasting colours to make the exterior of any building stand out.

Here’s the Deal:

Try to find a manufacturer that produces both the siding material as well as the trim material.  Most manufacturers offer a discount or package if purchased together and there will be no surprises when installing the product.

Inexpensive Renovations

When renovating your multi-family property, start with renovations that are going to save you money in the long run.  These renovations include:

  • Installing smart thermostats and other energy efficient appliances. Many of these items come with a tax break incentive.
  • New windows. This can reduce your energy bill by up to 25 % and will definitely boost your property’s curb appeal.
  • Upgrade flooring. Many tenants are willing to pay more for hardwood floors and they are far more durable and will outlast carpet, saving you cleaning and replacement costs.
  • Modernize plumbing to save costly maintenance and water damage. You can also install low flow options for showers and toilets to attract that millennial demographic.

Not only will these renovations save you money in the long run and further increase the value of your investment, they will also allow you to charge more rent.  It has been shown time and again that the new demographics of renters are quite willing to pay for added amenities and technology.

Breathe new life into your older multifamily property by following these simple tips.  These renovations will not only transform your building, they will also allow you to attract and retain a whole new set of tenants.  If you would like other ways to enhance your multifamily property or would like to see some of the new and exciting apartment blocks available in the Lower Mainland, please contact me today.  I look forward to working with you soon.

 

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Multifamily Trends for 2019

The demand in the multifamily market is forecasted to grow in 2019.  Now is the perfect time to either invest in the market or take steps to keep your property relevant and in high demand for the upcoming year.  As the premier real estate agent for apartment buildings for sale in the Lower Mainland, I would like to share the following multifamily trends for 2019.

Technology

Perhaps the biggest driving force behind rental trends in 2019 is going to be technology.  As the demographics continue to shift, more and more tenants are looking for Wi-Fi and other technologies.  Smart technology is quickly becoming a growing trend and will definitely influence the 2019 market.  Smart technology gives tenants more control over their property and includes:

  • Keyless entry.
  • Smart thermostats.
  • Doorbell cameras.

This type of technology not only increases interest and demand for your multifamily property, it will also save money in the long run.

Demographics

Millennials have taken over the tenant market and this change in demographics has altered what renters are looking for in terms of amenities.  They will pay more for smart technology and other such amenities, so make sure that apartments are ready for the millennials.

Market Demand

It is no secret that the rental market in the Lower Mainland is very competitive.  Even with the new housing starts and the government’s pledge to create more rental housing, this trend will continue in 2019.

Storage Options

The Amazon era is upon us.  Amazon’s share of the retail shopping sector will continue to grow in 2019 and your tenants will need a way of accepting packages.  Many apartments are installing smart lockers which will allow them to pick up their parcels whenever they can.  This is another example of smart technology as these lockers are opened by an app on the tenant’s smart phone.

If you do not have a bike locker in your multifamily property, you need one.  The shift in demographics means a shift in what type of transportation many tenants are choosing.  To save your walls and elevators from wear and tear, make sure that you have a safe place to store bikes.

Green Space

With more and more young families choosing to live in multifamily properties, the demand for green space has never been higher.  Parks, picnic areas or common open areas are all great ways to attract this demographic.  Green space also benefits the community and is a selling factor for tenants.

These multifamily trends of 2019 are sure to influence the rental market.  Make sure that you know and understand your tenant’s needs and wants and are ready for the New Year.  If you would like any more forecasted multifamily trends for 2019 or are interested in some of the apartment buildings that are for sale, please contact me today.  I look forward to working with you soon.

Happy New Year.

 

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Going Green to Attract Tenants

More and more tenants are demanding or expecting green features in the apartments that they want to live in and are willing to pay extra for these types of features.  If you are looking to attract and retain tenants and stay relevant in the multifamily business, you must provide a sustainable design and green features.  As the premier real estate agent for multifamily apartment buildings for sale, I would like to share some green features that will help you attract tenants.

Bike Room

In large cities, bikes are quickly replacing cars as the most popular choice of transit.  Bikes are mobile; they don’t get stuck in congestion and parking is never a hassle.  If you do not already have a bike room, you need to create one.  A bike room makes sense for a number of reasons.

  • A bike room will save your walls and elevators from additional wear and tear and damage because tenants will no longer have to transport their bikes to and from their apartment.
  • A bike room is a selling feature and will attract tenants that may look elsewhere for this specific feature.

Make sure that your bike room is on the first floor or in the underground and provide extra safety features to prevent theft or vandalism.

Energy Saving Appliances

Energy saving appliances show your tenants that you care and do believe in the green movement.  Even the often-overlooked aspects such as energy efficient light bulbs can attract a new type of tenant.  Millennials are especially focused on trying to reduce their carbon footprint and will quickly notice any type of energy efficient appliance or feature in an apartment.

Here’s the Deal:

An investment in energy saving appliances will attract a higher quality renter and can also save you money in the long run by cutting down on energy consumption as well as various tax breaks and cash back incentives.

Outdoor Space

Outdoor green space fosters a feeling of community.  This sense of belonging is a major selling point to many of the new generations of renters as they are choosing multifamily living over single family homes.  Some great ways to make the most out of your multifamily green space include:

  • Outdoor family dining area with a food prep and grilling area.
  • Community garden for residents.
  • Playground to retain renters who are starting families or have young families.

Remember:

Green space is no longer a luxury, but rather a necessity.

By offering green space and sustainable design features, your space will quickly become more appealing to a far larger group of potential renters.  These green options will help you retain tenants and can also allow you to increase rent.  If you have any more questions about the importance of green features in your multifamily unit or are interested in some of the new and exciting apartments that are for sale, please contact me today.  I look forward to working with you soon.