Source: The Daily Calle
The real estate landscape in Canada, and North America in general, has experienced material changes that have negatively impacted affordability. The recent increase in interest rates has dramatically increased housing costs for landlords and investors, and these costs are being passed on to tenants. The most vulnerable members of society, those relying on affordable housing, along with young Canadians and immigrants, are more likely to be negatively impacted as they are priced out of home ownership and housing altogether. For investors and developers, defaults are rising as the housing market stalls, and projects are no longer profitable, further decreasing the future supply of housing.
Reflecting on the current high-interest rate environment, Nathan Levinson, Founder and President of Royal York Property Management, comments that there is a heightened sense of caution among investors and property owners, with higher borrowing costs affecting purchasing decisions and slowing down the market.
“As new listings surged, home sales plummeted. Prices are now higher in both Vancouver and Toronto compared to the same time last year,” Nathan shares. “However, weak sales and high inventory have started to put downward pressure on prices.”
One would think this would translate to higher housing affordability, but the reality is entirely the opposite—it’s at an all-time low across Canada.
“First-time home buyers are generally putting off making real estate transactions and choosing to rent longer in the face of higher mortgage rates,” Nathan comments.
This trend, coupled with record levels of immigration, has created a surge in rental prices and presented a great opportunity for landlords with rental properties that are fairly priced and well-maintained.
And this is precisely where Royal York Property Management fits into the picture. With an impressive portfolio of around 23,000 properties and a deep understanding of landlords’ and tenants’ challenges, the company has become a beacon of reliability in the industry. As the leader in Canada for tenant placement and property management services, Royal York Property Management is helping connect landlords and tenants while professionally managing the properties.
Royal York Property Management’s proprietary match-making system leverages artificial intelligence and its vast database to efficiently pair landlords, tenants, and maintenance technicians. The AI algorithm sorts through various criteria, such as property details and specific requirements set by tenants or landlords, to streamline the renting process. This enhances the user experience and significantly reduces the time and effort involved in finding the right match for property rentals to under 15 days. This has allowed the Royal York Property Management team to devise a process that maximizes the return on investment for owners. At the same time, ensuring tenants have access to fairly priced and well-maintained properties with minimal barriers.
“It’s a huge asset that helps us match tenants with properties confidently and efficiently. We use an Enterprise Resource Planning (ERP) system that sorts through various criteria, like special requests by tenants or landlords, and ensures a precise and quick match,” says Mebby Mengele, Global Director of Operations at Royal York Property Management.
Royal York Property Management also has strategies to minimize tenant defaults and the requirement of evictions as the cost of living crisis and rising rent prices put a strain on household budgets. The company has a tenant screening process to reduce the probability of future evictions. By thoroughly vetting potential tenants, they ensure a more stable and reliable occupancy for landlords, contributing to a healthier and more profitable investment in the long term. The company is so confident in its screening process that it even offers a rental guarantee program to landlords to cover rental expenses on their behalf. Recognizing tenants’ difficulties, they also provide direct financing options and flexible payment plans to help during challenging times. This helps tenants and benefits landlords by reducing the likelihood of vacancies and the need for eviction.
Nathan and his team always take steps to approach these matters delicately, preserving the interests of all parties involved. For the landlords especially, Royal York Property Management’s in-house maintenance division makes a difference. Post-eviction, Royal York Property Management offers extensive property maintenance services to prepare properties for release. Our team of professionals promptly addresses any repair or renovation needs, minimizing the time the property remains vacant and maximizing rental income for the landlord.
“If it comes down to an eviction, our team provides immediate and reliable support for all units
under our management. We also perform regular property assessments, which helps us identify potential issues early and address them promptly, keeping the properties in optimal condition.” describes Nathan.
These are the challenges facing the rental market today, but Royal York Property Management has always kept an eye on the future and tried to get ahead of trends. Data-driven decision-making is what has allowed the company to grow so rapidly. Considering the market oscillations and rent prices further rising amid low housing stock, Nathan believes the next year may make the market even more competitive. The Research & Development department at the company is always working on further integrating data into the decision-making processes to enhance operational efficiencies and improve tenant experiences.
The next step also involves expanding into new markets to help relieve the issues that tenants and landlords face in other geographies. The first foray is a scheduled launch in Fort Lauderdale, Florida, in early 2024. This move marks the beginning of what Nathan envisions as a domination of the U.S. property management and tenant placement market, replicating the success Royal York Property Management has achieved in Canada.
Furthering this expansion is the innovation at the core of the Royal York Property Management business model. The company is poised to transition into a disruptive PropTech company, a natural evolution from its brick-and-mortar roots. This transition is underpinned by an acute understanding of the value of data in today’s digital world. Royal York Property Management plans to leverage this data-driven approach to scale its services across North America.
Royal York Property Management is dedicated to setting industry standards as the one-stop shop for all landlord and tenant needs. And considering the Royal York Property Management team’s expertise and impressive track record – only the sky seems to be the limit.