Fabulous Vancouver vacation Rental market and Prices

Vancouver is so beautiful this time of year. This is the time of year to winterize your homes. The leaves are about to fall from the trees and litter the ground. So, it is a perfect time to pack your bags and get ready for a beautiful vacation at Vancouver. This city is not only a most favorite place for visitors or vacationers but it is also a first stop for every investors. This is true that about 70% of the Vancouver’s economy based on tourists and vacationers but now this city become a hot spot for making some extra cash. This city offers you many different business and investments opportunity along with its scenic beauty and thriving nightlife. So, you can not only make some extra money by investing here but also enjoy the fabulous colors of your life. In short, Vancouver offers you every thing that you are looking for.

Being as an investor, it is an initial right for all of us to know about what are the Vancouver market rental rates and prices for some money making investments? First of all there are many different factors involved in putting a rental value on a property like square footage, location, style, amenities, age and the most important factor market rates or what is the market willing to pay?

According to the semi-annual report of 2011, which tracked investment deals valued at more than $5 million, in the first half of 2011 total multi-family rental building sales amounted to $238 million – a 125-per-cent increase over the second half of 2010 ($106 million) and a 51-per-cent jump over the first half of 2010 ($158 million).

The report said institutional and overseas buyers look to B.C. for opportunities, but that investments in the suburbs are drawing buyers out of Vancouver as the supply of large, institutional-grade apartment buildings available for sale within city limits shrinks.

In April 2011, the rental market conditions across British Columbia were much different from other rental markets in western Canada. This is because mostly people moved from apartments in purpose built rental buildings to other forms of housing, including homeownership, secondary rental units such as investor-owned condominiums or secondary suites.

Here are some figures of Vancouver Vacation rentals market condition:

Vacancy rate

·         April 2010 2.2%

·         April 2011 2.8%

Availability rate (The availability rate measures the number of rental units which are vacant or for which the tenant has given or received notice to move and a new tenant has not yet signed a lease compared to the universe of rental units.)

·         April 2010 3.1%

·         April 2011 3.7%

Rents (CAD)

·         April 2010 978

·         April 2011 989

Change in rent

·         Apr-09-Apr-10 2.3%

·         Apr-10-Apr-11 1.6%

Let’s take an example of a One Bedroom + Den in Downtown Vancouver, 600 sq/ft in a comparatively new building with good facilities including gym, in suite laundry and parking. According to the Vancouver market you can get $2.00 per sq/ft in a newer building in Vancouver. If you include some extra amenities, views and extra spaces just like a fireplace and balcony then you can achieve some extra of about $0.25 per sq/ft. As a result, your rental rate will up from $1200 to $1350 per month.

If you choose $1450 monthly rental rate for your property and wait for the right person to come along and rent at the higher rate then you are risking vacancy and loss of income. It is better to choose a more reasonable rental rate of $100 less per month. This is because at a lower rental rate you will receive more interest in the property and could take multiple applications giving you a wide variety of possible tenants to choose from and you may even have an offer higher than the asking rate.

This technique is not much favorite for those investors who are well versed in the real estate sales markets. Also, everyone knows that when you buy a property the asking price is always flexible at some level. But it is a fact that every renter sets a limit in his/her mind and even never calls those prices and rates that are over his/her budget. This is because there are many renters who don’t know that rents can also be negotiable. So, it is better to charge right rental rate for highest return with the quickest turnover. This is the key to productively renting a property without the added costs of vacancies.

Michael Keenan, managing director of Avison Young, Metro Vancouver, said “Apartment buildings are a low-risk investment, offer secure income streams and are the most easily financed commercial real estate commodity of all, thanks to rates guaranteed by the Canada Mortgage and Housing Corporation.”

However, Marg Gordon, CEO of the BC Apartment Owners and Managers Association, said.

“The challenges right now in a nutshell are controlled revenues and uncontrolled costs.”

Here are some prices and rates of Vancouver rentals:

1) Downtown Vancouver 2 Bedroom:

·         Two bedrooms

·         Two bathrooms

·         1000 square foot unit

·         Facilities: granite countertops, hardwood floors, new stainless steel appliances, a balcony and much more! 

·         Price: $159.00 per night

2) Penthouse:

·         5,000 square feet

·         Three over-sized bedrooms, vaulted ceilings, and a sunken swimming pool

·         Price: $1,450.00 per night

3) Three Bedroom Waterfront:

·         3 Bedrooms

·         2 Bathrooms

·         Carpark

·         Price:  $229 per night

4) Luxury 2 bedroom at the Shangrila:

·         2 Bedrooms

·         2 Bathrooms

·         Carpark

·         Price: $229 per night

5) Two Bedroom Downtown in Style:

·         2 Bedrooms

·         2 Bathroom

·         Carpark

·         Price: $159 per night

There are so many options available of rental real estate. Just make some research and get what suits you best. Don’t forget to confirm that whether extra expenses like parking fees, dry cleaning, meal service, are included in a rental package or not.