So, you currently are a landlord or maybe you're thinking about taking the plunge into becoming an investor and are wondering about rental rates. Well, fortunately for you Joe Pratap (Realtor with Sutton West Coast Realty in Langley B.C.) joined me to answer some of your top burning questions. Just take two minutes from your day to watch the video or read on below:
Just in case you want a little bit more info or don't have volume, here are the answers below:
1. How much can I increase rent by?
A Landlord can increase rent each year up to (but not greater than) the percentage equal to the inflation rate plus two percent. The allowable rent increase for each calendar year is available on the Residential Tenancy Branch's website. For 2016, the allowable rent increase is 2.9%.
Though there are some other guidelines and exceptions to these rules we recommend that you visit the official BC website for tenancy and rent information.
2. How do I know what I should charge? What is fair market value?
Next, we recommend you consult with someone who is knowledgeable and in the industry. We suggest you consult with your local realtor, mortgage broker and property managers to get an expert opinion from someone who lives and breathes real estate.
3. I am currently a landlord, should I raise rent?
Currently, in the lower mainland rental vacancy is extremely low which essentially means that there are far more people looking for rental properties than those available. As a landlord this provides you with an opportunity to increase your rent.
In years past many landlords would struggle with the idea of raising rent or losing a good tenant. With so many potential renters out there you will likely now have the opportunity to pick your tenant instead of the other way around.
In Joe's expert opinion, now is the right time to look at increasing your rent.
Are you wondering how you can take advantage of your newfound equity and looking to build your wealth through real estate? Make sure to reach out to us so that we can show you how you can actually use that equity to put as little as 5% down and own your second home!