How to Market Kelowna Rentals Amid Falling Rent Prices

The rental market in Kelowna has taken a sharp turn in recent months. In June, the median monthly rent for a one-bedroom apartment reached a record $2,010. By July, it had dropped six percent to $1,890. This sudden reduction reflects the impact of supply and demand in Kelowna’s market. With new apartment complexes rising across the city, tenants now have more choices than ever, and landlords are being forced to adapt.

Renting Incentives & How to Position Rentals in a Cooling Market

Over the past few years, Kelowna has experienced a construction boom, particularly with six-storey apartment buildings. Many of these new developments are just now hitting the market, dramatically increasing rental supply. As a result, landlords face a more competitive landscape. To attract renters, incentives have become a popular strategy.

Some units are now offering one to two months of free rent and free parking. Others are luring tenants with flat-rate utilities, free internet, and extra storage options. And, for buildings with luxury amenities, tenants are being incentivized to spend a little more on rent so that they can have access to things like gyms, pools, saunas, dog runs, BBQ areas, yoga studios and co-working spaces. 

This level of competition represents a significant change from just a year ago, when Kelowna’s rental vacancy rate sat at a tight 1.3 percent. Now, estimates suggest vacancies hover around five or six percent. More available apartments mean lower prices and more power in the hands of renters.

Despite rent reductions, Kelowna remains the seventh most expensive city in Canada for both one- and two-bedroom apartments. That means affordability is still a challenge for many residents. To successfully market rentals in this climate, landlords must do more than just lower rents. Creating value through incentives, highlighting lifestyle benefits, and focusing on location are increasingly important strategies.

Potential tenants are also cautious due to broader economic pressures like inflation, stagnant wages, and uncertainty about the future. In this environment, promoting stability, convenience, and community within a rental property can be just as appealing as a discount.

For example, highlighting proximity to transit or recreational amenities can make a rental stand out. Similarly, showcasing flexible lease options can add to a property’s appeal. In a competitive field, differentiation matters as much as price.

FAQ About Kelowna Rentals

Why are Kelowna rents falling right now?

The city has seen a surge in new apartment construction, which has increased supply. More available units mean more competition among landlords, leading to lower rents and added incentives.

Is Kelowna still an expensive city to rent in?

Yes. Even with recent declines, Kelowna remains the seventh most expensive city in Canada for both one-bedroom and two-bedroom apartments.

What can landlords/investors do to market rentals successfully?

Alongside competitive pricing, landlords/investors can offer incentives like free rent or parking, emphasize lifestyle benefits such as location and amenities, and create a strong sense of value for tenants.

Contact me today for more information about attracting tenants to Kelowna rentals in a competitive market. Be sure to visit my brokerage’s site for more content like this! Don’t hesitate to reach out with any questions about Kelowna real estate.