What is the proposed BC Rental legislation?
In Dec 2018, the BC Rental Housing Task Force proposed a new legislation to remove rental restrictions by strata corporations. The proposed legislation was designed to quickly address the shortage of rental homes by converting previously restricted units to become available. The goal was noble however, this resulted in a backlash response from strata and condo owners.
Author: Meryl Hamdillah is a licensed REALTOR with Sutton WestCoast Group and an active community writer. If you are planning to buy or sell real estate in Coquitlam/Tri-Cities or Metro Vancouver areas and want to stay up to date in the market or a property, feel free to call or text 604-307-9506
Who is FOR the proposed legislation?
- Renters who are looking for more rental stock would benefit from this legislation.
- Homeowners who have want to rent out but can not due to restrictions.
- Buyers who are looking to buy a larger home in a strata and need a mortgage helper but potential rental suite is restricted.
- Sellers who are trying to sell a large strata home with a basement suite.
Who is AGAINST the proposed legislation?
- Condominium Home Owners’ Association of B.C. (CHOA) are lobbying against this new proposal because strata decisions are voted by homeowners…so why should their votes be trumped and controlled by this new legislation?
- Many resident homeowners and strata feel that non-resident homeowners do not participate as wholeheartedly in the maintenance and care of their units as resident owners do.
- Some strata owners argue that renter problems and costs of eviction procedures, repair, extra insurance costs wind up being passed along to all the other strata home owners.
DID YOU KNOW? Rental bans mostly exist in pre-2010 strata units. This is because many post-2010 condo developers placed rental exemptions that allowed units to be rented for a number of years using a developer’s rental disclosure statement. This made condo pre-sales attractive to potential investors.
Looking to buy or sell strata properties but not sure rentals are allowed?
It is best to work with a real estate agent that is familiar with reviewing strata bylaw restrictions for strata properties whether it is a single home on a bare land strata, a condominium, or a townhouse. Have an expert guide you to see if there are rental exemptions available to you, or if there is a rental disclosure statement that exempts you from strata rental restrictions.
Can I buy and rent out strata property that do not allow rentals currently?
The short answer is no. You should wait for the legislation to become a reality first. As of April 2019, the Strata Property Act has not been changed. Many potential buyers have been asking WHEN this legislation will take effect but should be aware that this new legislation is not enacted. If you are interested in looking for properties that allow rentals, get in touch with an expert that can help guide you. Just fill out the form at bottom.
A proposed Solution
The BC government’s desire to increase rental stock and affordability is a noble effort that many British Columbians support. However, many homeowners feel that BCTHF’s proposal to remove rental restrictions across the province is a heavy handed solution. Rather than taking away rental control completely from strata corporations – perhaps a better compromise would be to legislate that strata can only restrict a guideline percentage. We propose that 30% of buildings should be allowed to rent out their units at a minimal. This matches the organic 30% of households that rent in BC. This guideline would force strata that do not allow any rentals or only a few, to increase to 30%. Strata would still have some control but are guided by the organic minimum of 30% of rental units.