CMHC's Fall Rental Market Report

CMHC reported today that vacancy rates in BC decreased to 2.4% from 2.7% one year ago. The survey results are heavily influenced by Vancouver CMA, which contains nearly 2/3 of the units surveyed. CMHC reported an increase in Victoria from 1.5 to 2.1%, a decrease to 3.0% from 3.5% in Kelowna, increases in Abbotsford, Kamloops, Nanaimo and Vernon, and decreases in Chilliwack, Campbell River, and Prince George.

Average rent increases were 2.7%, marginally above inflation for the period.

The opinion of ROMS BC is that vacancy rates are generally understated. The fundamental reason being that this report is only indicative of the primary rental market - structures with three rental units or more. As an example, our research indicates that Victoria's vacancy rate is in the 4 to 5% range and has been for over a year.

Do the results seem accurate for your geographic area?

-- LandlordMentor and AdviserToTheAdvisers

Deposit Interest Rate to Remain at 0%

Interest on security and pet damage deposits is payable at a rate prescribed by section 4 of the Residential Tenancy Regulation. It states that the rate will be set each January 1st for that calendar year, with the rate being "4.5% below the prime rate of the principal banker to the Province." This means that for interest to be payable, the prime rate must be at least 4.6%. We're confident in predicting that the prime rate will be well below 4.6% next month!

The security deposit interest rate has been 0% since 2009, meaning that for any tenancy ending in 2012 that began later than January 1, 2009, there is no interest payable.

Interest rates for earlier years were 1.5% for each of 2007 and 2008, 0.5% for 2006 and 0% for 2002 to 2005 inclusive.

Security and pet damage deposit interest is compounded, so when a tenancy of many years' duration ends, an appreciable amount of interest might be due to the departing renters. You can calculate the amount of interest owing in literally a few seconds by using the Residential Tenancy Branch Deposit Interest Calculator. Go to rto.gov.bc.ca and click on Deposit Interest Rates & Calculator in the column on the left of the page.

-- Al Kemp

10 Tips: How to keep their attention on the phone

With the market at one of its softest points at recent history, it's important to continue to screen tenants before allowing them to move in, while at the same time making sure you don't let any of the good ones go. (Thank you to Rent&Retain for these great tips!)

1. Learn to say "goodbye" before you say "hello;" meaning eliminate all distractions and focus on the task at hand.

2. Make sure get your caller's name, but don't overuse it.

3. Ask them how many different ways they heard about your vacancy. (Often, there's a combination of advertising sources that prompted them to contact you.)

4. If you're comfortable with the caller, ask: "When would you plan on moving into our community?" It's a great pre-qualifying question that starts the assumptive close.

5. Find out if they have any special needs that your community has to offer, such as walk-in closets or a full sized washer and dryer.

6. Always ask for an appointment.

7. Repeat back to them what they told you was important. It shows you paid attention during the call.

8. Offer to text Mapquest directions to your property to their cellphone.

9. Offer to set up a reminder call or email about their appointment.

10. Thank them for calling and tell them you're looking forward to helping them find their new home.

-- Carly Ludwar

Friday, October 28th

This date needs to be marked in your calendar!

Why? Because it's the date of ROMS BC's Associate Members Trade Show, Annual General Meeting, and [the first ever] Trivia Night! Once again being held at the beautiful Crystal Garden in downtown Victoria, BC.

From 4:00 until 6:00, join us for our formal Associate members trade show. Nearly 30 exhibitors will be excited to tell you about new products and incentives. In addition, there are multiple Associate member product demonstrations and informative workshops. This portion of the event is free to attend for ROMS BC members and their guests.

At 6:30, we will have a gourmet dinner catered by the Fairmont Empress Hotel. This will be followed by our [brief!] Annual General Meeting. The early bird registration cost to attend dinner and the evening that follows is $54.95 per person for ROMS BC members and their guests.

Beginning at 8:00 will be Trivia Night. Replacing the Casino Night of the past three years, Trivia Night gives you the opportunity to reconnect with Associate members - while having a great time! Each booth will have questions from one of seven categories; geography, entertainment, history, arts and literature, science and nature, sports and leisure, or BC's residential rental industry. Each question will be timed, and in order to fill all the pieces of your "cake," you'll need to visit every booth. And if you get the answer correct at any booth, you'll win ROMS BUCKS!

At 9:45, Trivia Night will be over. At this point, all members and their guests will come down to the prize auction, where ROMS BUCKS are used to "purchase" fabulous prizes. And if you don't win any ROMS BUCKS? No worries; there will also be door prize draws.

If this sounds like your kind of evening, watch your mailbox and inbox for more information!

-- AdviserToTheAdvisers

HST Referendum

How do we get past the emotion and vote on the facts? Some things to consider:

> HST hurts the residential rental industry because we pay tax on more items than we did with the PST, and can claim no input credits.
> If HST is repealed, it will cost BC taxpayers $1.6 billion in repayments to the federal government.
> When HST was implemented, about 400 provincial government jobs transferred to the federal government. Will those positions return to the BC government and have to be paid for by BC taxpayers if HST is repealed?
> HST is a more efficient tax; it costs less for businesses to administer.

ROMS BC isn't advocating yes or no, but we do advocate that you exercise your right to vote. And because of Canada Post's lockout, voting deadlines have been extended; if you haven't received your voting package, you need to request it by midnight on July 22nd, and you must mail your voting card before 5:00 pm on August 5th.

Remember; "NO" means keep the HST and "YES" means repeal it.

How do I do a credit report?

Credit checking is one of the most important services we offer our members. But how do you actually get a credit report?

What you need:

1. The full, legal name of your tenancy applicant(s).

2. Either date of birth or Social Insurance Number of each applicant.

3. Full present address (this includes postal code!).

4. A signature for consent to perform a credit [and reference] check.

Other helpful items:

1. Having both the date of birth and the SIN, if your applicant will provide both.

2. Full previous address.

3. Cell phone or house phone number.

4. Credit card number (DON'T record the expiry date!).

The process:

1. Provide us with the necessary information by a) stopping by the office with your Application for Tenancy form, b) giving us a call with your Application in front of you, or c) faxing in the completed Application.

2. We check the Evicted Tenants List. This is a database of 1000 ex-tenants who were evicted by members of ROMS BC. If your applicant shows up on this list, we recommend you stop the process here - and you don't pay!

3. We check the Delinquent Tenants List. This is a Canada-wide database (managed by our partner Tenant Verification Services) of ex-tenants who owe $200 or more to a former landlord. Again, if your applicant shows up on this list we will recommend you stop - and you still don't pay!

4. If your applicant does not appear on the Evicted nor Delinquent Tenant Lists, we will run a TransUnion credit report. The cost for this service is $8.95 when done via fax, $11.50 when done over the phone or in-person, or if no information is found - what we call a "no hit" - you don't pay anything.

Other important information:

1. Applicants are not required to provide you with a SIN or credit card number. If they are uncomfortable providing these items, don't force them; we can still do a credit check, and requiring a SIN is illegal!

2. These credit reports take a maximum of 4 business hours to complete. Please be patient; we do over 12,000 reports each year for our members!

3. Our staff are trained in interpreting credit reports. If there is any part of the report you don't understand - or you don't know what to do with it! - simply give us a call.

4. We are also able to perform American credit checks, Canadian and American commercial credit checks, and criminal record checks; contact us for more information.

You've heard it before and I'll say it again; tenant selection is the very most important aspect of being a landlord, and your process should include a credit check. It's easy to evict bad tenants - before they move in!

-- AdviserToTheAdvisers

ROMS BC's 3rd Annual Charity Golf Tournament

Join us Friday, June 24th at the Royal Oak Golf Club in Victoria to golf nine holes; either in a foursome package (to golf with whomever you choose), or individually or as a couple (with fellow members or Associate members). We will golf in a scramble format, taking the best ball each shot.

Then head inside for drinks, a gourmet buffet dinner and team and individual prizes - not to mention great company. Whether you've golfed once, twice, 100 times or never, we guarantee you'll have a good time - all for a good cause!

Sign up as:

An individual golfer: this includes green fees, one dinnerticket, and a $30 tax receipt for your donation.

- $89 per person

A foursome team: this includes green fees for four people,four dinner tickets, and four $30 tax receipts for donations.

- $329 per team of four

Registration: 11:30 - 12:45

Pre-round golf fitness: 12:00 & 12:30

Tee time: 1:00

Dinner and prizes: approximately 5:30

To sign up or make a donation to the Next Steps Transitional Shelter, call the ROMS BC office at 250.382.6324 or 1.888.330.6707, or go to golf2011.speedsurvey.com.

Craigslist users beware!

You advertised your soon to be vacant suite on Craigslist. Today you got some really great news! A person e-mailed you, saying your suite is exactly what she is looking for, however, as she is currently attending university in England, she can’t see the suite, but wants to rent it for sure. Because you can’t meet each other first, she is prepared to pay you $100 more than you are asking, plus three months’ rent in advance. She will make her recent bursary cheque, issued by the University, payable to you, so you know her payment is valid. A small detail: the cheque is for 4000 pounds, the equivalent of about $7600, so could you please mail her a cheque for the difference.

This is one of countless variations on the same theme; a scam! A potential renter doesn’t live in your city – usually the person is in Europe or Asia – is moving soon, and your place is perfect! The person wants to send you a money order, cashier’s cheque, cheque from an institution or government, etc. which invariably is for considerably more than the generous amount the person is willing to pay you.

Of course the document will prove to be bogus, but by the time you find out, you will already have sent the “change.” The old adage applies to the rental industry as it does to every other walk of life: if it seems too good to be true, it is!

-- LandlordMentor