What is a Live Work Building?
Live Work buildings in Vancouver are slightly different from typical condos buildings in Vancouver, and there are different kinds of Live/Work buildings, specifically, those that allow office style Commercial Uses and Artist Studios. First and foremost, the units are typically a little more bare than other condos, meaning they offer only the necessities. This means the Live Work units are generally lofts, with concrete flooring, exposed pipes, and high ceilings. Many of the buildings offer a loading bay for residents who build large projects, a show room that residents can use to display their art, and a workshop offering tools and a large space to do other work.
In order for a building in Vancouver to be granted Live Work Status, the building has to follow Building bylaw requirements for both residential and non residential occupancy. Considering that the units may be used for both living and working purposes, the buildings have to be designed to accommodate both uses, and neither use should affect the quality of living of other residents.
Check out our list of Live Work Buildings in East Van.
Assuming a building is zoned for Live/Work, that means residents can use the space for:
- A dwelling
- General Office, Health Care Office, Barber/Beauty Shop, Photography or Artist Studio – Class A (meaning a non toxic artist studio)
- Both 1 and 2 above.
When it comes to using the space as an Artist Studio – Class A, there are two different types of “Artist Studio” permits. The first type is Live Work Use meaning the artists are allowed to have employees and trades in their units. The second type is “Residential Units associated and integrated with an Artist Studio” meaning the residents are limited to the production of art, and employees and trades are not permitted.
Live Work Buildings and Zoning
Live Work Buildings can fall under many different types of zones, many of which are commercial-based. Live/Works are complicated enough that I can’t offer a blanket statement as to what’s allowed in each type of zoning, so the best thing to do is to contact me to inquire about specific buildings given your type of business.
C-1 Commercial District: Allows small-scale convenience commercial establishments which serve their local area and which provide primarily retail sales or limited service functions.
C-2 Commercial District: Allows a wide range of goods and services that require central locations to serve large neighbourhoods and communities.
C-2C Commercial District: Allows a wide range of goods and services that require central locations and that create a pedestrian-oriented shopping area (and limiting the amount of office space).
C-3A Commercial District: Allows a wide range of goods and services that maintain commercial activities, specialized services and some light manufacturing.
IC-3 District: Light industrial, live arts and theatre, residential uses are permitted.
HA-1 and HA-1A: Chinatown Historic Area
HA-2: Gastown Historic Area
HA-3: Yaletown Historic Area
For more information on zoning (there is lots to know), check out the City of Vancouver’s Zoning & Development Bylaws page.
Financing for Live Work Buildings in East Van
There are many benefits to a Live-Work unit, especially when it comes to taxation. Because the business is run from your primary dwelling, you may be eligible for a significant tax write-off. Often, your are allowed to write-off 70% of the space as Commercial and 30% as residential (if you live and run your business out of it). This differs significantly from the typical 25% Business write-off you’re allowed in a typical home.
Tax Implications with Live Work Buildings
This is very important – find out if the tax has been paid on the Live Work unit. Businesses with a GST number can defer the tax (and thus never have to pay it). If you don’t have a GST number you’d have to pay the GST amount on the current property’s value. This can be thousands of dollars depending on the value of the unit.
The entirety of your mortgage cannot be written off with a Live Work space. Consult your accountant to see how this affects your financing – both personally and professionally.