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SASK. LANDLORD ASSOCIATION EXPECTS RENT TO INCREASE

Posted in Industry Trends, Inflation, Newsworthy, Rental Rates

SASK. LANDLORD ASSOCIATION EXPECTS RENT TO INCREASE

The Saskatchewan Landlord Association (SLA) says that higher rental rates could be on the horizon.

Rental rates have remained relatively steady over the past five to seven years but over the summer months, prices are expected to rise between five and 10 per cent, according to the SLA.

“Rental housing providers are being pinched by inflation just like all other businesses, from the carbon tax to property taxes to the price of goods and services from hot water heaters to toilet bowls,” said CEO of the Saskatchewan Landlord Association, Cameron Choquette.

The increase will be below the average compared to larger markets in eastern Canada according to Choquette. Currently, the average price for a one-bedroom in Saskatoon is $975, while a two-bedroom goes for $1,145, according to Rentals.ca.

“This increase that we’ll see over the course of the next few months is really about playing catch up and allowing us to provide those services,” he said.

According to Choquette, another contributor to the expected rise in rent is property insurance, which he says has increased in some cases by as much as 100 per cent.

A property management company eyeing potential increases is ICR Commercial Real Estate for multifamily residential homes.  

“Tenants might see a slight increase, maybe three per cent because we do have rising increases in regards to utilities, taxes, insurance, those costs are going up and we have to cover some of those costs,” said residential property manager, ICR commercial real estate Chanda Lockhart.

Insurance for their properties has increased up to 30 per cent in some cases. For the properties she oversees there is currently less than two per cent vacancy. 

“We’re finding that tenants are struggling to find a place,’ said Lockhart.

The SLA advises people to have conversations with their landlords to allow them to plan ahead if rent does rise for them.  

 

Story by: CTV News