R/E seems to be a fairly hot topic and seems there's a bunch of landlords around here so would like to get input on three things.
1. With the low interest rates and the current state of Calgary's economy what will happen in rental prices in short term? Prices will go up, down, sideways?
My view is that rental supply is reducing with landlords liquidating properties since this is a great exit opportunity. On the demand side renters are skewing towards purchasing properties instead of renting since it's always a great time to buy real estate and rent is a waste of money. A scenario that illustrates my point is that rentals typically fall within the range of first home buyers so there's a 1:1 (or close to) reduction in supply and demand so prices will be stable in the near term. Thoughts?
2. How do landlords come up with their advertised rental price?
Had a conversation this weekend with a friend about determining a rental rate to advertise. Their approach, as a current landlord, is that rent is a function of their mortgage and total monthly costs. I disagree in that in on a street with 5 similar rental houses there's going to be 5 different monthly costs based on the financing structure. I'd like some insight from landlords what's your process for coming up with a rental price? At what point do you determine to reduce rent? I believe holding out for that one person/fool to cover all of your monthly costs will be far more expensive than reducing rent.
3. Are inner-city landlords worried about competitiveness/tenant availability with WFH becoming more prevalent?