For those Buyers looking for an investment condo, or those looking to buy a condo that offers the ability to rent just in case something in your life changes, this information is for you.
A Strata building bylaw may either prevent owners from being allowed to rent their unit or restrict rentals (types of restrictions can vary, see more about Rental Restrictions). These rental restrictions can change if the owners in the building vote with 75% approval to change the rental bylaw (to whatever was proposed).
Until recently, the general rule has been, if the buyer bought a unit from the developer and the developer had filed a “Rental Disclosure Statement” (a document specific to each building that would be within the strata documents) that identified that unit as being allowed for rent, and the Rental Disclosure Statement had not expired (there is an expiry date on the document), the buyer was entitled to rent that unit regardless of any rental bylaws. Any rental bylaw instituted by the Strata would not apply to that unit until the Rental Disclosure Statement expired or the strata lot was sold, whichever happened first. This means the second Buyer of any unit would be limited by the Strata’s rental bylaws (if they exist).
Recent changes to the Strata Property Act have altered this rule. For all developments for which the Rental Disclosure Statement was filed on or after January 1, 2010, a rental bylaw passed by a strata corporation does not apply to a strata lot identified in the Rental Disclosure Statement, until the expiry of the Rental Disclosure Statement, regardless of who owns the unit. This means that the Buyer who purchases from the Developer, along with every forthcoming Buyer until the expiry date of the Rental Disclosure Statement, is allowed to rent their unit, regardless of if the building institutes rental bylaws. This gives Buyers peace of mind in knowing that their investment and ability to rent is safe. The date the Rental Disclosure expires is information we can find out via the strata docs and property management company. Rental Disclosure Statements were often written with 100 years timelines, though it can be as low as 1 year.
I’ve gotta say, it’s a little confusing, especially if you’re not familiar with other strata rules. This type of information is something that the WeLoveEastVan team is aware of and looks for if the ability to rent a unit is important to you. Contact us for more information, or to sit down and chat about your real estate needs and what we can do to ensure you buy a unit that’s right for you.