Renters want it all, and especially the extras that add convenience and luxury to their living. But are tenants tired of paying for those luxuries and are willing to give them up in exchange for reduced rent?
Video transcript below:
Reporter: Renters want it all, but at a price. And what about concierge service? Are renters really willing to pay the extra for the service? We find out in this week’s episode of Investor Insight on CREW TV.
The concierge service is changing. With less working hours and virtual offerings, investors and renters are less willing to pay, so does this mark the end of the concierge.
Joy Patterson, Co-founder, Condo Chicks
Joy Patterson: I wouldn’t say this marks the end of the concierge services in general. I say that we are to see more of a shift and a change in what’s being offered to condo owners and condo buyers. We have got 3 different scenarios in the market. One of them is the buyers and owners who do want the full service, they do want the 24 hour 7 days a week concierge, they want the amenities and they are willing to pay for it. These buyers, these owners are generally the baby boomers who are looking to downsize from their homes and also we are looking at the new kind of segment and new purchasers in the city which are women. And when women look to buy a condo, they are really looking at the security issues and the security features in a condo that they can be provided with. So they as well are also looking for 24 hour 7 days a week concierge services.
The second segment are people who do want to cut their costs and they are willing to forgo the concierge, forgo the pool, forgo all the amenities just to save the money on maintenance fees each month. I mean the third segment, is kind of a new segment that we’ve seen in the past couple of years and it’s more of a virtual concierge. If you go to new buildings in the city are offering this. So what is this, you walk into a lobby of a condo and instead of having a live person there, you actually have somebody who greets you on a screen and they are sitting in another building in the city or in another city and they are managing multiple condos by the same developer or the same management company. So that’s a great way to kind of keep that personal touch in the concierge, but also to save costs.
Reporter: Is the concierge service a real deal breaker for high end renters?
Monika McMillan, Sales Representative, Bosley Real Estate
Monika McMillan: I think concierge service is an important part of living in a condo as a renter and also purchasing a condo as an investor to rent out. But you do have to look at other, other things, other amenities other than the concierge. You know there is a gym, is there is parking, is there, is the building kept clean as a property management company on site. Those are also things to consider when investing in a property to rent out, because renters do look for those things, they do see for the quality in that and, but also rents in Toronto are high already, so when I work with young professionals, they are looking for a condo building that does have a concierge service, that there is that added value included in the rent that they pay. However if the building is not great and if the building is older and if the property itself, the unit itself doesn’t look so great then the concierge really doesn’t make a difference at that point. So it’s a good thing to have for a renter, but it’s not only thing that will attract a renter to a condo.