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