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There’ll always be situations that change the condition of Canada’s housing industry. However, the present coronavirus pandemic has made one of its most striking impacts ever seen. Some specialists say the adverse effects are for the most part brought on by anxiety, but potential home buyers and tenants have a good reason to worry about
Even with a federal moratorium on evictions, no guarantee houses won’t enter foreclosure sooner or later. At some point, the accumulation of outstanding rent and mortgages will need to get repaid. At that moment, if the payments can not be made, a foreclosure will probably be inescapable.
With millions of people from work and no indication of the economy going back to normal, people are afraid to take on more debt. If you are going to lease or sell your property in the middle of an uncertain market, here’s what you need to do.
Learn more: How to Grow a Business in a Slow Economy
Emphasize the perks which appeal in an uncertain market
Under normal circumstances, you would advertise the perks people want most, such as good schools, quiet areas, and proximity to shopping facilities. In an uncertain market, these perks take a backseat to matters like being close to major job centers and having enough soil to cultivate a vegetable garden.
In an uncertain economy, individuals are considering their long-term survival. Prospective buyers or renters might be Searching for:
- Large pantries to store canned goods in large quantities
- Large yard space sufficient for planting a vegetable garden
- Space for an external freezer to store food
- Solar power, geothermal, or green energy
- Walking distance to retail spaces for potential employment opportunities
- Good insulation
- Gas-powered appliances that can run on propane
Do not bury these appealing features on your listing. Highlight them prominently. For instance, as soon as your record is viewed by people who wish to cultivate their food, then they’re likely to search for space to grow their garden. If your pictures and descriptions don’t overtly demonstrate adequate space for a garden, they will likely move to another list.
By marketing perks that allure in an uncertain market, you are increasing the opportunity of selling or leasing your home.
Raise your criteria for credit scores and earnings for renters
If your rental home is currently vacant, think about raising your standards for credit scores and income. Although increasing your criteria can make it more challenging to locate a qualified renter, it is an excellent long-term strategy to mitigate the potential for outstanding rent.
When you require a tenant to make income equal to three times the lease, you are in a better place compared to having no income requirements at all. Say your lease is $2,000 a month. A qualified tenant would need to make a minimum of $6,000 per month. Considering the majority of unemployed individuals have been laid off from retail tasks, a person earning $6,000 per month is much more likely to have a job that survives an uncertain market. When that same individual has an exceptionally high credit rating, you know they’re also accountable for paying their bills. This is a winning mix.
If you lease your house right now to a person who meets minimal requirements, you might get a jobless tenant next month. In cases like this, you’d end up with no rental income for several months, possibly longer.
However, some individuals have steady jobs, money in the bank, and, therefore, effectively maintain mortgage payments. You’ll come across these tenants by raising your criteria for credit scores and annual income.
Don’t list your house cheaply to attract buyers or renters
Although the COVID-19 catastrophe has created an unemployment problem, you do not need to undercut yourself on your rent or sale price to find a tenant or purchaser.
Many cities, such as Edmonton and other regions of Alberta, are experiencing a surge in home sales. Home sales are up since people are afraid that there will be a repeat of the previous recession that struck in 2007. Because of this, there are more buyers than homes for sale.
With a limited supply of available houses, buyers engage in fierce bidding wars, and competition is ferocious.
Whether you’re attempting to sell or rent your home, do not drop your price below market value. There are loads of people willing and ready to pay the whole price for what your property is worth.
Hire a property management firm
Trying to sell or rent your home under normal circumstances is hard enough. When you’re in the center of an uncertain economy, the job may feel overwhelming. Imagine if you choose the incorrect tenant? What if the buyer loses their job next month?
Being a landlord isn’t easy and is attempting to sell your home. A property management firm essentially provides you back your life and helps you turn your house investment into some source of passive income.
Contact a professional and licensed Realtor
Should you need to rent or sell your property, we are here to help. Companies like Bermont Realty have decades of experience renting, marketing, and managing homes in the greater Edmonton area.
If you are looking to rent, they’ll thoroughly screen all candidates to discover a high-quality tenant. If you currently have a renter and you only need some help, they’ll take more than your landlord obligations so that you may contact your life and begin generating genuinely passive income from your home investment.
To find out more about how they could help, contact us for free home evaluation. We’ll review your information and contact you to discuss your requirements and clarify precisely what we can do to assist.