Nicholas Meyer, and Lisa Taylor, Leasing Agent, discuss Downtown Suites’ fees for management of luxury suites.

Nic: At Downtown Suites we specialize in the downtown Vancouver suite market, and a large part of our portfolio are luxury suites, in Yaletown and specifically in Coal Harbour. Many of these suites are worth upwards of two to four million dollars. We are very adept at dealing with that caliber of tenant, and those owners. We are very understanding of their needs which are slightly different. We are very confident and comfortable dealing with higher quality tenants and owners, and especially with higher end properties. We are very good at that, and the bonus to our owners is that we charge $250 as a cap on our fees.

For any suite over $3000, it doesn’t matter how much more it is, our fee is $250. In a lot of cases this now works out to 2,3 or 4%, so we are very very competitive. I know that many of our competitors are still charging the flat 8%. It seems outrageous to me, actually, that somebody could be charging $500-$1000 a month when we are just charging the $250, which I think is reasonable.

Lisa: Especially when we are talking about $6000 rentals, $7500 rentals. We do an extremely good job and we think that $250 is a fair value. And of course our leasing fee is a half month’s rent. That is for all of our suites. That includes the tenant screening, tenant qualifying, the showing of the suite, and making sure that we get a happy and “right fit” tenant, especially in our luxury suites.

Nic: And incidentally, tenants don’t move very frequently in high end suites, they are generally in for several years, so the leasing fee shouldn’t be something to be overly concerned about. Anybody who moves into 2 or 3000 square feet is generally wanting to stay there for quite a long time. I recently had a tenant move out after 20 years in a suite. So it’s essentially $250 a month for our luxury suite management.

Fabulous  suite with North West panoramic views of the water, majestic North Shore mountains and Stanley Park

View from suite at 1616 Bayshore Drive

#2201-1616 Bayshore Drive

Monthly rent $3,900 2 Br. 2 Bath, 1,588 sq. ft.

Contact Downtown Suites for more info.

We manage unfurnished suites in downtown Vancouver and surrounding areas.

Our unfurnished rental suites range in price from budget and economy to deluxe and luxury and are located in all neighbourhoods: Beach Crescent, Marinaside, Yaletown, Coal Harbour, Gastown, False Creek North, English Bay, Robson St. The West End, Fairview, False Creek and Kitsilano.

View our listings of currently available unfurnished apartments.

More about our rental process:

• We are licensed property managers and all rent monies are held in trust.
• All of our suites are well maintained and should there be any repairs required, we attend to them promptly.
• Our tenancy agreements are governed by the Residential Tenancy Act of BC and we use the approved forms.
• Unless otherwise noted all tenancies are for a minimum of one year’s lease. We require a minimum of two personal references and prospective tenants are required to agree to our obtaining a credit reference.
• Once approved, a deposit of one half month’s rent is required from the applicant.

Nicholas Meyer and Lisa Taylor discuss high end rental suites in Vancouver BC, June 2009.

#2503-918 Cooperage Way

In Vancouver’s Yaletown
$2,750 per month, 1,202 sq. ft.
2 Bedrooms, 3 Bathrooms
Developed by Concord Pacific; Brand new, never lived in!

#902-1139 West Cordova St.

Waterfront Luxury in Coal Harbour
$6,500 per month; 2,400 sq. ft
2 Bedrooms, 2 Bathrooms

Truly exceptional suite – over $4million value!!

For more info, contact us at Downtown Suites.

I was just doing some research for a client and I noted that there are currently 35 listings actually active already in this new building on MLS!

It appears the much vaunted and waited for Shangri La building is suffering along with the rest of the market.

It will be about 75% rental from what I understand.

The only sale on MLS was a 26th floor (that is a few floors below the view kicking in) one bedroom of 595sq ft which had been listed at $458k but sold the last week of November 2008 for $410k or $689psf.

This week at Downtown Suites the outcome of all viewers for each suite are as follows:
In the $1000-$1500 per month price range: 15 people
In the $1600-$2000 per month price range: 17 people
In the $2100-$3000 per month price range: 8 people
In the $3100+ price range: We have listings in this price range but we have yet to show them because the units have not been closed.

There are many people who are still on the hunt for the perfect suite for rent in Vancouver, and they have a lot more options out there now. One of the other reasons that our viewing numbers are down is that it is getting close to the holidays. From the turn out for each viewing it is evident that most people do not want to move during the holiday and the new year.

Update on our suites in H&H and the Shangri La

H&H

As far as rentals go, we have had a few of our H&H suites rented. This is a wonderful brand new building with high end finishings and top of the line appliances. All the suites have a generous amount of space for you to cook in, hang your clothing, and have a bubble bath.

On top of all that, there is a common area roof top garden is very peaceful and serene when you get up there. We still have a few suites available and they are definitely ones that people should add on their list of places to view.

Shangri La

The Shangri La is another building that has been getting a lot of buzz. The suite has amazing views of the city with an open layout and wonderful details in the kitchen and bathroom.

The hotel is due to complete in mid January with all the amenities including the spa up and running in the new year. Located just right next door is the Burberry retail store that showcases some of the most well made and classic pieces. The new Urban Fare is already extremely busy with people either enjoying a bite, sipping on a cuppa joe, or picking up some gourmet ingredients.

This is a great address to live and people should definitely make an appointment to view it today.

I agree with this recent Vancouver Sun article (Real Estate Sales Grind to Standstill by Derrick Penner) that there is always something fundamentally wrong when prices become too high for the local consumer to afford.  This is nothing new in our boom and bust cycle of real estate in Vancouver. I have seen it all before!

The writing has been on the wall for several years.  I was amazed at the continued growth over the last few years… way beyond what we could sustain locally.  I also agree that if you buy thinking long term and view real estate as a place to live rather than a chip on the monopoly board you are not going to lose.  Before we reach the nadir of the market is when all the prime properties will get snapped up.

Contrary to the stats of other agents,  at Downtown Suites we have sold several properties now for our clients looking to cherry pick good opportunities.

I agree the market averages will decline into the second quarter but the “dogs” will be the ones driving the average prices down further.  There is always a market for blue chip properties and they always ultimately appreciate in value as the market rebounds.

My advice would be to keep your powder dry and get in touch with a good agent who specializes in the area you are interested in purchasing and be ready to make your move when you see something you like.

Don’t run scared of the real estate market, we’re not…we’re doing more sales now than before…with over 30 years experience we’ve seen it all before! Call or email your local success story: www.downtownsuites.com.

This week at Downtown Suites two of our remaining studio suites and a wonderful 1 bedroom were rented. Other rental updates for this week are as follows:

In the range of $1000-$1500 per month we had 102 inquiries. All of the suites in this price range have been rented, except one which will not last long.

In the $1600-$2500 per month range we had 19 Inquiries. The suites in this price are still available and are worth coming  to view. Each has its own special features, and have great layouts.

In the luxury $2600+ range we saw 53 inquiries. We do have a lot of interest and will be holding showings soon for some new suites that have just come on our listing. We find there is still a market for the high end luxury suites.

Here are this weeks new listings at Downtown Suites.

H&H: 414 1133 Homer St 2 Bedroom, 2 Bathroom, 1000sq ft., $2400

The Pointe: 1203-1331 W Georgia 1 Bedroom, 1 Bathroom, 553sq ft., $1350

Carrall Station: 402-1 E Cordova 1 Bedroom, 1 Bathroom, 585sq ft, $1350

The Kensington: 56-1386 Nicola 2 Bedroom, 2 Bathroom, 1335 sq ft, $2750

We have new listings coming on very frequently, so please visit our website on a regular basis.

Contact Theresa Prak at Downtown Suites for more info.