- The following does not apply to the high end condo market -
It seems that a very large number of people are wanting to sell their empty, low end to mid end condos located in my area of because it is so hard to find tenants.
I can only think that it has something to do with the massive oversupply of new and vacant condos resulting in a slow but sure decline in prices that some owners do not accept is happening. This decline being in terms of rental rates and the sale prices of 'old' units.
Of course it is natural for owners to want to receive the highest possible rent but many are holding out for the max. Those that refuse to budge on rental rates or prices don't get a tenant or buyer, whereas those that do lower rents or prices get the buyers or tenants.
It is a buyers / or renters market whether owners like it or not. The argument that I must get 25k a month rent to cover the mortgage does not work anymore. Nor does the argument that a tenant will come along eventually and accept the higher rate does not work much either. It used to but not now. These arguments will not work now as there are fewer customers wanting to rent or buy and they have a large choice of available properties.
See it from the point of view of a prospective tenant. The tenant is faced with multiple offers of units of the same type and standard in the same condo building. Most rents are set at 20k but another is at 18k per month negotiable. Which one will the customer take? The same will go for a potential buyer. It is a buyers market !
It is a fact that owners who are flexible when it comes to rental rates and agreeing to the some of the needs of customers get the tenants.
Of course some people will argue that everyone should set the same prices but that can never happen. There are far to many people in the real estate business, all with different ideas, to even think that this way of pricing could be achieved.
So owners of properties please accept the way it is now and be flexible or you will not get a tenant and the way things are looking, you will not be able to sell either.
Don't forget, this only seems to apply to the low to mid end condo market. The high end is a different matter.
Take the following advice from On Nut Condos and maybe you will be more successful in finding a tenant or buyer
'Apart from price flexibility and realism, what WILL help to sell or rent out a property is the amount of detail an owner provides us about their condo, along with the standard of the pictures they send. The 1 bed condo at xxxxx for rent at 20k, and 3 or 4 low quality images, is not the way to do it. Please read our guidelines for assistance.
Some people might say that if the customer views the property they can find out all the detail at the viewing, yes in the past that might have been true. But customers are now faced with so much choice online that the quality of the pictures of a unit and the detail in a listing is definately a main deciding factor as to which ones they actually go to view.