See what our Vancouver property management experts are predicting for property rentals in Vancouver for the remainder of the year
2020 has been a challenging year in all sectors, but considering everything that’s happened, the rental and real estate markets in Vancouver have proven to be more resilient than some had predicted. Of course, pandemic repercussions, such as rent freezes and travel bans, have caused difficulties for landlords, but overall, those who are renting out their homes are finding many aspects of their residential rental ownership improving with each passing week.
For example, the moratorium on eviction notices has ended, and landlords are now able to institute a repayment plan with tenants for missed rental payments from past months. Similarly, government assistance for people out of work still remains available for many, as do rental supplement programs from BC Housing.
Not sure what the remainder of 2020 has in store for your residential rental property in Vancouver this year? Here are some trends that our experts have compiled:
Evictions Ban Lifted, Repayment Plans Initiated
On September 1, the government lifted its moratorium on eviction notices for unpaid rent. That means landlords can issue notices for unpaid rent and create payment plans for renters to pay back any arrears. This bodes well for property owners who have extreme circumstances with renters, though Landlord BC stresses that most of its members want to first try and work with tenants who can’t pay rent before they issue eviction notices.
For many landlords who need to collect rent, this change comes as a huge relief during times of financial hardship, especially in extreme circumstances where renters have been causing other problems that stem beyond rent. It also eases the tension between well-meaning renters and landlords who want to find feasible payment solutions. Namely, the government’s program to give tenants until next summer to pay rent owed from the past five months lets landlords avoid the stressful and costly process of evicting tenants while giving renters more time to pay back rent as the economy improves.
Most Renters Will Still Pay Rent, Those Who Can’t Will Try and Work It Out
According to a government press release, most renters in BC have paid their full rental fees since March, while 12 percent have made partial payments. In most cases, both renters and landlords have been working together to create reasonable payment solutions, which, in the long-term, help landlords maintain steady occupancy rates and financial stability.
Support for Renters and the Unemployed Still Available
While the government’s CERB benefit has ended, it has implemented other assistance programs allowing many individuals who are still out of work or who are unable to work due to COVID-19 to receive government assistance while the economy recovers. Among these programs are the
- Canada Recovery Benefit (CRB) which provides eligible workers with $500 per week for up to 26 weeks.
- Canada Recovery Caregiving Benefit (CRCB) which will provide $500 per week for up to 26 weeks to those who are caring for children or family members
- Canada Recovery Sickness Benefit (CRSB), which provides $500 per week to workers who cannot work due to COVID-19 illness, vulnerabilities or quarantine restrictions.
Similarly, tenants who lost their pandemic rental supplement might also qualify for existing BC Housing benefits.
Demand for Rentals, while Stark in the Short Term, Will Grow in the Long Term
While there has been an increase in rental vacancies over the past few months, many are predicting a long-term forecast where rentals will be in-demand as the economy and travel restrictions ease. As schools open up, and travel restrictions lift, students and workers on visas will come surging back, especially if restrictions loosen by summer.
Likewise, while this summer saw an unexpected spike in home sales, many growing families who were in the position to purchase property have had to hold back due to job losses and economic insecurity. This means they are staying put as renters for the foreseeable future.
Many Will Seek Assistance from Vancouver Property Management Companies
Numerous renters are moving out of the downtown core, opting for larger spaces in cheaper, more remote locations. This means that property rentals in downtown Vancouver will need extra marketing and help to find tenants in the short-term. Currently, Vancouver property management companies, like HostGenius, are branching out to professional networks to ensure these central properties remain rented.
Over the long term, the projected population growth for the GRVD is high, and the demand for rentals will remain strong with housing prices still being out of reach for a large chunk of the population. But for the short-term, vacant rentals will need extra support from property management networks and experts who can navigate the fluctuating market.
Do you have a vacant rental in Vancouver? Our Vancouver Property Management experts can help! We have a broad professional network chock-full of tenants who are looking for rentals in Vancouver. Contact our Vancouver property management team to see how we can help!