How Technology Can Assist With All-Time Low Vacancy Rates
While the booming statistics of the rental industry are both scary and thrilling, vacancy rates hitting an all-time low in North America make for disheartened prospective tenants who are looking for a place to call home.
Simply put, the growing demand for rental units means an increase in pricing and a decrease in options and availability for renters.
Of course, renters and property management companies or landlords alike aim that the time between a renter’s initial inquiry and lease be as short as possible. This is why appropriate management of tenant wait lists is crucial-- not only for active and aging residential properties, but for brand new developments looking to launch.
We have seen an enormous decline in vacancy rates across North America, and, although this is great for residential leasing companies, wait times need to be managed properly to ensure prospective renters have a great experience. A single prospect turned away may have been a perfectly ideal future resident; the goal needs to remain that no one is turned away.
Now that home ownership has become, frankly, unrealistic for most North Americans, it has forced more residents to seek and remain in rental accommodation. With this shift, the average vacancy rate for private purpose-built apartments in the Toronto CMA declined to reach its lowest level in 16 years. In the GTA over the past two years, the number of purpose-built private rental units under construction reached its highest level ever. And yet, with the growth in residential developments, renters are having a “horrific time” seeking a place to call home.
The average monthly rate of all types of rental housing in Toronto, examined by the Canada Mortgage and Housing Corporation, is over $1300-- and this number is still increasing. Yet, with vacancy rates at an all-time low, many renters are forced to sign for units with these kinds of prices.
A federal national housing strategy was introduced fall 2017 which is pledging $40 billion over the next 10 years to new units and upgrades of aging properties, while providing loans to developers to build new purpose-built housing geared toward middle-income families.
There are many people fighting against homelessness that exemplify our need to prioritize renters.
It is important to ensure that hopeful prospective tenants are given a chance to find a home and are not turned away due to the lack of availability. How can property management companies set up a seamless waitlist experience for their prospects?
LeadManaging has concentrated on the need for wait list management, and has provided the ability to easily manage the availability of buildings and units within one platform that allows their users to turn on and off booking forms, and convert to waitlist forms automatically. In addition, an organized list of wait list submissions in which auto communications can be easily sent out as availability changes is provided to users.
Implementing this kind of technology within leasing teams is vital for rental companies this year, as the shortest wait time for renters is the most important aspect of their rental process. Pricing and availability may be out of reach for many renters, yet having the option to submit themselves to a wait list automatically is enough to restore hope for a home base.