- According to the SLA, rental rates have been relatively consistent over the last five to seven years, although costs are expected to rise by five to ten percent over the summer months.
According to the Saskatchewan Landlord Association (SLA), greater rental rates may be on the way.
According to the SLA, rental rates have been relatively stable over the last five to seven years, although costs will likely jump by five to ten percent over the summer months.
“Rental housing providers, just like all the other businesses, are feeling the sting of inflation, from the carbon tax to taxation to the cost of goods and services like hot water heaters and toilet bowls,” said Cameron Choquette, CEO of the Saskatchewan Landlord Association.
According to Choquette, the increase will be below the national average compared to bigger markets in eastern Canada. According to Rentals.ca, the average cost for a one-bedroom in Saskatoon is $975, while a 2-bedroom costs $1,145.
“The increase we’ll see over the next three months is essentially about catching up and allowing us to provide those services,” he explained.
Another factor contributing to the predicted hike in rent, according to Choquette, is property insurance, which has increased by as much as 100% in some circumstances.
ICR Commercial Real Estate, a property management business for multifamily residential homes, is looking at prospective hikes.
“Tenants may notice a tiny rise, perhaps three percent, because we do have rising costs in terms of utilities, taxes, insurance, and those prices are going up, and we have to pay some of those expenditures,” said Chanda Lockhart, residential property manager, ICR commercial real estate.
In some situations, the insurance cost for their homes has risen by as much as 30%. There is now less than 2% vacancy in the buildings she manages.
“We’re finding tenants are having trouble finding a place to live,” Lockhart added.
According to the SLA, people should speak with their landlords to plan if their rent increases.
Source: CTV News