Rental restrictions could increase speculation and create more work for condo boards, landlords say

Strata owners fear that proposed changes to tenancy restriction laws at strata complexes will no longer do work for councils and residents.

On Monday, Premier David Eby announced a plan to amend the Strata Property Act, limiting restrictions on renting in strata, in a bid to open up rental opportunities as the province continues to face a crisis housing.

The changes “would end all strata rental restriction regulations and limit age restriction regulations”. Some buildings currently only allow people aged 19 and over to live in them – which Eby says creates challenges for people starting families.

Eby estimated that 2,900 Strata units in British Columbia are empty, and said opening just half of those to tenants would help.

The province estimates that 1.5 million British Columbians live in condominiums, which include condos, apartments, townhouses and single-detached homes, in some cases.

Condominium owners typically elect volunteer boards to collect condo fees, arrange insurance, pay bills, and enforce condo bylaws, among other things.

While some people are applauding the plan, saying any step towards housing creation is positive, strata owners fear the end of the restrictions will please rental investors, who will bid against families trying to become homeowners.

“Prices will go up,” said Wendy Wall, president of the Vancouver Island Strata Owners Association.

“All it’s going to do is keep those people who are trying to get out of the rental market out of the rental market.”

Wall said she’s received a “flurry” of emails from condo owners and volunteer board members concerned that if investors buy condo properties, they’ll be renting them out and essentially not involved in leasing.

“When the landlord isn’t physically there, tenants look to other landlords, and that usually means the council. All of these day-to-day things end up happening to the council,” she said. On the island host Gregor Craigie.

“Board members become de facto owners and all that extra work falls to the board members.”

“The consequences we face right now [with] the rental ban is that people who want to rent a vacant condo cannot,” Eby said in response.

“And someone who wants to rent this, who is desperately looking for a place to rent, is not able to rent it, or someone who has several rooms in a condo wants to rent one is not allowed to TO DO.”

Tony Gioventu, executive director of the Condominium Home Owners Association of BC (CHOA), echoed Wall’s concerns that the move could encourage speculation, adding that the majority of the 300,000 strata in British Columbia are in apartment buildings. less than 50 units.

“It’s just going to mean that when a unit goes up for sale, it’s not going to be bought by another occupant who’s going to live there, it’s going to be bought by a speculator, and we’ll end up having more competition.

“It’s not 3,000 affordable units. Strata properties are expensive to maintain, run and buy and they won’t be cheap, affordable units themselves.”

Gioventu said data collected by CHOA showed that buildings that have rental regulations have 99% occupancy rates, while buildings built since 2010 that allow rental have occupancy rates of 75-75%. 80%.

Eby said the amendments won’t affect Stratas’ ability to ban short-term rentals, such as renting rooms or homes on sites like AirBnB.

If approved, the change will take effect immediately.