Rental Prices Rising after Flooding

Posted by Justin Havre on Wednesday, July 10th, 2013 at 9:01pm.

With rental properties so hard to come by in the city, some residents are complaining about rising prices on rental units. It's a simple case of supply and demand and with the need for apartment housing at a critical peak and the inventory close to 0%, it's really not that surprising.

Calgary has been experiencing an extremely low vacancy rate for rental units during the last year and things have only gotten a lot worse since the flooding began. There are a number of displaced families, singles and couples that could sure use some temporary housing right now but they are finding that it's hard to come by. Even when an apartment does open up, some people are surprised to see that landlords are price gouging for their own benefit.

The Calgary Real Estate Association, however, is not aware of any rent hikes that could be considered flood related. That doesn't mean that it's not happening in isolated incidents though. Let's face it, there are some people out there that will look for a way to profit from an already serious situation.

The problem isn't only that more people are looking for a rental for temporary housing because of the flood. A lot of apartments had to be vacated due to damage and some of these units may end up being a total write-off. Other apartments may require weeks or months to be put back into shape so that the original occupant can move back in.

The vacancy rate in Calgary in its pre-flood days was only 1.2%. It's not known what the numbers are right now but they are expected to be close to 0%. It won't be until fall until the official updated numbers are released.

Legally, landlords have to let their tenants know 3 months in advance of any rent changes on rentals that are leased on a month-to-month basis. On yearly rentals, rates aren't allowed to go up more than once yearly.

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