Good for Business, Latvia, Legislation, Real Estate

This year the majority of “summer” rental agreements were signed between January and March. A relatively large number of agreements were short-term – 1 week to 1 month. According to the data of experts at Baltic Sotheby’s International Realty the number of requests for short-term rental agreements for the summer of 2013 has increased as well. And the majority of rental agreements will be concluded in the first 3 months of the year. The foundation for the summer of 2013 is being laid at the moment, reports BC PR and marketing manager at Baltic Sotheby’s International Realty Jana Cirule.

Jurmala is still very attractive for well-known reasons. However, the question is: how the relationship between Jurmala’s real estate owners and the potential tenants will shape. “We see that owners still expect a lot and right away”, points out Ilze Mazurenko, co-owner of Baltic Sotheby’s International Realty. “The situation was made worse when last summer the resort was practically run over by a wave of unprofessional market players which in the pursuit of objects promised conditions as they were 2-3 years before. They did not keep their promises, of course, but instead left nice memories of the potential profit behind.”

“All around the world supply is determined by demand. Real estate owners in Spain, Bulgaria adjusted to clients’ wishes long time ago by offering them to spend a vacation in apartments for any convenient period”, says Ilze Mazurenko. “Everyone knows that working with one client who rents a summer cottage for 3 summer months at once is a lot easier than with 10 [clients] for the same period but one should look at the situation at hand. And the situation is as follows: people want to spend their vacation for 1-2 weeks, instead of the whole summer.”

As for this year, first of all, in 2012 a downward trend in interest of the potential tenants in the international contest of young pop singers New Wave was observed. As soon as alternative in the form of London Olympics emerged the potential tenants rushed over there. Secondly, last summer was cold and rainy. And finally, since amendments to Immigration Law became effective, long-term tenants have bought real estate which they inhabit themselves or rent out to their friends and acquaintances. And that in its turn considerably reduced the circle of potential tenants.