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All signs are pointing to Alberta emerging from the pandemic in a financially stronger position than other regions in Canada. The housing and rental markets in Alberta reflect a great opportunity for property investors. It’s a perfect storm and perfect timing for those that have the resources to invest. For investors from Alberta as well as other provinces like British Columbia and Ontario, there are a number of factors contributing to the recent boom in real estate.
Six Trends Why Property Investors are Buying Houses and Condos in Alberta
- Canadian cross-city investors are looking to Alberta to find less expensive alternatives for rental properties compared to hot markets like Toronto and Vancouver. According to Western Investor, a recent rental building in Edmonton was sold to an Ontario Investor group for $85,128 per door. This compares to $300K+ in Ontario and a staggering $491K average in Vancouver. https://www.westerninvestor.com/british-columbia/alberta-offers-welcome-shelter-to-multi-family-investors-4761540
- Oil has increased to $100 per barrel — all O&G is poised for continued growth due to increased world demands and fears of a prolonged conflict in Eastern Europe. The Edmonton Journal suggests this will continue to increase to $180 a barrel: https://edmontonjournal.com/life/homes/alberta-real-estate-in-2022-the-hare-not-the-turtle
- A shift for investors to property, which is a great place to put money as a hedge against inflation. Magnum York currently suggests 4.32% for CPI forecasts, using a trailing 12-month calculation: https://introducing.magnumyork.com/CPI. We don’t see any signs of CPI increases slowing down.
- Alberta has not seen any significant change in rental rates for the past decade, so that presents an opportunity for investors. Rental rates are lower than in hotter markets, so investors see upside to both cash flow as well as equity growth in their properties: https://ca.style.yahoo.com/perfect-storm-brewing-alberta-rental-201000959.html
- The influx of population to Alberta, through both Canadian and international immigration, means that the province will continue to see increased demand for houses. According to Remax … “Calgary residential MLS sales set a record in 2021 and the pace of activity has not slowed with year-to-date sales soaring so far in 2022 – up 78 per cent from the same period a year ago.” https://www.remaxcentral.ab.ca/blog/investors-look-to-buy-homes-in-calgary-market-to-rent-out/
- New inventory coming on the market for new houses driving up prices; Alberta housing starts are the highest they’ve been in 7 years, last year they were 33% higher than in 2020 and 17% higher than in 2019. https://www.atb.com/company/insights/the-owl/housing-starts-in-2021/
What Are Five Types of Investors That Use Professional Rental Management Services?
- Hands-Off Investors: Magnum York takes care of everything. You’ll have your cash distribution in your bank account by the 25th of every month.
- Risk Reducers: Magnum York’s extensive market analysis and pre-screening processes focus on getting the right people into your property.
- Smart Money Entrepreneurs: We offer great pricing and reliable accounting cycles to optimize cash flow from your investment. And, our extensive preferred trade and vendor network helps protect long-term equity by making sure your property is well-maintained,
- Busy People who need some time back in their day: We take care of tenant service requests and related maintenance. We pay your condo fee and handle communication with management issues between the condo corporation and your rental unit.
- Investors with more than one property looking for economies of scale, especially those from out of province or with properties in multiple cities and towns.
Looking after the needs of tenants can be hard, time-consuming work. That’s where Magnum York Property Management steps in. Utilizing our professional services creates a worry-free environment for investors.
Investors appreciate Magnum York’s expertise and cross-Alberta reach to manage their rental properties
Magnum York manages over 750 properties in 30 locations across Alberta, from our 4 offices. We offer an exclusive program “PIM” for investment owners.
Magnum York Property Investment Management (PIM) Program. For a small % fee of monthly rent, Magnum York offers:
- Competitive Market Analysis
- Marketing & Online Ads
- Pre-screening prospects with CERTN & personality analysis
- Virtual Youtube video walk-throughs
- Property showings & negotiations
- Preparing lease documents and lease renewals
- Provide incentives as required
- Security deposit collection and management
- Provide move-in/move-out support
- Full accounting services with reconciliations, rent collection, and monthly statements and your $$$ disbursement ready by the 25th of every month
- Responsible maintenance of your property with trades and vendors from our MYVendor Professional Vendor program
- We answer tenants’ phone calls and emails 24/7/365, including overnight emergency service
- Tenant management includes legal compliance
- 30 Years of experience serving Alberta Rental Investors!.
Why Do Rental property Investment Owners Trust Magnum York?
★ SOLID ACCOUNTING
Full accounting services with reconciliations, deposit of rental receipts, vendor management & invoice payment, rent collection, and monthly financial statements ready on the 25th. Access for you to all of your accounting data and financial reports 24/7 through MYWebPortal.
★ TENANT MANAGEMENT
Magnum York has efficient systems and competent people to respond to tenant inquires & complaints. We ensure tenants comply to legal requirements of signed lease, Provide 24/7 emergency telephone service. Update & communicate with tenant, manage Tenant rent collections & cash flow continuity, manage & collect delinquent rents including eviction processes.
★ MARKETING & LEASING
Full-service Unit Leasing with advertising your property, providing a virtual YouTube video tour, pre-screening prospects with CERTN & personality analysis, property showings, negotiating and preparing lease documents, provide incentives as required, approving appropriate tenants, move-in/move-out processes.
★ EXPERTISE & TECHNOLOGY
Magnum York is a professional firm managing condominiums, apartments, rentals, multi-family, HOA, rental pools and more. We’ve built our technology with years of experience to support our team to help you and your tenants better.
★ RESPONSIBLE MAINTENANCE
Magnum York works with responsive and accountable vendors. Our MYVendor Preferred Vendor Program is a first in the industry. Complete vendor management services & seamless invoicing, including bulk discounts & response for our clients with licensed, bonded, and insured vendors
★ RECA & GOV’T COMPLIANCE
Magnum York has been a RECA licensed broker for 30 years. As a landlord, we ensure you comply 100% with government regulations.
- Magnum York PIM Program: https://magnumyork.com/current-clients/condo-owners/p-i-m-program/
- Request a Proposal: https://rental.magnumyork.com/investor-services
- Rental Pool Management: https://magnumyork.com/rental-services/rental-pool-management/