The Rental Market

A long time friend of mine is trying to find a new place to rent.  He currently lives in a good downtown neighborhood, but has a smaller & older basic studio apartment.  After 4 years there, he'd like to move into something nicer.

The problem is he can't. 

Let me predicate this by saying he's not what you'd classify as a "bad tenant".  He has a stable job, which pays him a decent income.  He's a quiet guy & isn't someone who has loud crazy parties.  He doesn't ask much of people, is low key and generally in the background.  Having been to his place he's neither messy nor destructive.   In short, he's probably what most people would see as a good tenant.

Yet, his level of frustration in finding a place to rent is out of this world.  He contacts landlords about rental properties, yet often doesn't receive an acknowledgment.  The few times he gets to a viewing, often times he applies but hears nothing back from the landlord.  This is a frustration I've heard from other people attempting to find rentals out here.  Now, granted, he is only looking in specific areas & each of these areas is desired by most folk.  Of course that leads to the inevitable supply & demand thing...with more demand than supply.  I suspect that because of the high demand, more than a few people 'grease" the landlord with, um, a cash gift shall we say.

Now, I am a  pro free market kind of guy (hey, I had my own business).  I'm not a fan of Ontario style rent control & even when I rented in Ontario I wasn't.   And I recognize that being a landlord is real tough sometimes.  It's certainly not something I'd ever want to be.  Yet, I find it incredibly hard to defend landlords in Calgary.  There seems to be this short term "get the money now and fuck everything else" mentality.   It defies the business logic of building long term customer relations. 

But this extends beyond a buddy having a hard time finding a decent place to rent.  In the greater scheme of things it's just one less reason for people to relocate to Calgary.  In the age of information, word gets out about things quickly. 

Calgary is currently experiencing a labour shortage.  That shortage extends from those that wash dishes right on up to well schooled in demand professionals.  ALL of those people are likely going to rent an apartment if they make their way out to Calgary.  If the rental market is lousy, it's just one less reason for them to relocate to Calgary.

For that person working in say a kitchen, are they going to relocate to Calgary to make 2 dollars an hour more than where they live now?  Not likely.  Why would they?  It makes little economic sense. 

And what of that person who is a seasoned professional in their trade (I'm in that category FWIW).  Assume they live in Toronto or Vancouver & are offered a position in Calgary.  How are they going to react when they reach out to connect with a landlord but repeatedly get NO reply at all?   It certainly doesn't give a good impression to a newcomer.   And, for those living in Calgary, it certainly leaves a bad taste in your mouth.  If you're a landlord reading this might I suggest you take a minute to reply to a call or email sent to you.  In case you've forgotten, part of your job IS to communicate to people.  Good times don't last forever & when the next oil bust comes (and it will), your tenants will have a plethora of choices available to them.   A person doesn't necessarily like getting a rejection, but, in time, it will resonate far more positively than not answering at all. 

Don't believe me?  Ask anyone that's used online dating & doesn't get a reply to the initial email they send out.  Dating site refugees are usually bitter & angry people...much like your tenants.  Remember that.