Vacancy rate on rise
Kirk Penton - Sep 24, 2018 - Biz Releases

Photo: Kirk Penton
Kelowna Mayor Colin Basran serves cake to Mission Flats residents on Friday.

Kelowna’s rental vacancy rate is expected to be higher when the next numbers are released, and it is projects like Highstreet’s Mission Flats on K.L.O. Road that will be responsible for the increase.

The 280-unit complex, which held its ceremonial grand opening on Friday night, consists of five buildings, the first of which opened in March and the final one in August. Apartments and townhouses were available, and they were all snapped up quickly.

“This community needs it,” Highstreet vice-president of operations Pino Mancuso said as residents enjoyed food, music and draw prizes around him. “People are looking for a place to live. And if (the rental vacancy) goes up to two per cent and we’re priced right, we won’t have a worry.

“And it’s not just about the rents. It’s about having tennis courts. It’s about having a car-share program. It’s about building the communities differently.”

The City of Kelowna recognized the serious issue facing the community, so it offered tax incentives for companies to build affordable rental units. Highstreet, which is based in Kelowna but has properties all over B.C. and Alberta, jumped at the chance.

“The property tax incentive really helped us make a decision to build,” Highstreet president Scott Butler said. “Three years ago the rents aren’t what they are today, and believe it or not to build a purpose-built rental it was borderline at the time. The rents weren’t quite there. So it really helped tip the balance for us to focus on Kelowna.”

Rents for the apartment units range from $1,239 to $1,609, while townhome prices are between $1,269 and $1,999.

“We could’ve charged top dollar, but really what we wanted to do was charge a fair dollar because at the end of the day we’re trying to build a community. So that’s what we wanted to do,” Mancuso said. “We’re hoping that the people that are here today are going to be the people that will be here two years or three years down the road.

“We could’ve gone after the dollar and then at the end of the year have a whole bunch of turnover, or you could make the rents a little bit lower, build a community, build a place where people can bring their families and their friends, and that’s been the mentality we went after.”

Kelowna Mayor Colin Basran, who attended the grand opening and served cake to residents, pointed out that he and his council have done everything they can to help residents find affordable rental units.

“There’s been over 3,000 rental units approved by this council—more than any other in our city’s history—that are now under construction or occupied,” Basran said. “It’s predicted our vacancy rate in our community will rise to two per cent next year. So we’re making strides, and we will continue to do what we can to make sure housing is available and affordable for people in our community.”


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