Co-ops are organizations incorporated under the Cooperative Association Act that provides housing to its members. Members purchase a share to join the co-op and directors are elected to govern the co-op. Most co-ops are similar to rentals or a lease with no equity in the building. However there is no landlord and monthly rents are called “housing charges”. Monthly housing charges are based on what the co-op needs to break even after operating expenses and putting money aside for repairs. Approval of changes to housing charges are usually made by resolutions at general meetings.

Co-ops  are considered “mixed income communities” with people  from a range of backgrounds and incomes. As they are independent organizations co-ops have their own application process to join. Member control is democratic and controlled by members who actively participate in setting policies and making decisions.

While co-ops are usually located in some of the most central areas of town with large units and distinctly lower prices than regular strata properties, there are key things to keep in mind. 

1. The registered owner is the Co-op, and the buyer is buying a share and exclusive use of the unit but not buying real estate, it is a leasehold interest so the lease needs to be received and thoroughly understood before moving forward

2. The buyer is purchasing a period of time left on the lease, so as the lease runs out, the unit may not increase in value

3. The buyer needs to understand the use of the unit, are there rentals allowed, if not occupied all year long are there tax implications, etc.

4. Because a co-op is a purchase of a share and not real estate, lending can be challenging and may require a cash purchase.

As always, having all the information is pertinent before making any decisions. We are here to help with any questions and have the best real estate lawyers to recommend to guide you through the legal ins and outs.

There’s a ton of properties to view this weekend from condos to mansions! Check out this link to get an idea of what area you would like to explore and go view some properties.

https://www.vreb.org/open-houses#gsc.tab=0

There’s a lot  to know when it comes to buying and selling properties with tenants. Luckily we have Ilana Pretoruis, a skilled Realtor and Property Manager to guide us all through the ins and outs of tenancies in Real Estate!

1. Are you purchasing a property to have fully tenanted or partially tenanted? You will need to make sure you are well versed with the Residential Tenancy Act in BC. As a Property Manager and Realtor this is part of every day for Ilana. She is our go to for everything and every question tenancy related.

2. Have you checked with the local municipality to make sure the property is zoned for suites? 

3. Ensure that any property with a suite has had a proper inspection to make sure the plumbing and electrical are up to code and safety measures are met.

4. When purchasing a property make sure you review any rental agreements currently in place. Is there a lease? Is the tenant month to month?

5. Tenants come with the property. You are not allowed to evict them to then turn around and rent out the property for a higher rent. So make sure that if you are purchasing the property with a tenant in place that you can make the financial numbers make sense for your purchase. Ensure that you are credited the tenant’s damage deposit on the Statement of Adjustments, and that the deposit has been accruing interest as per the RTB calculator. On possession of the property make sure you do a suite walk through so that you know the current state or you won’t be able to withhold the damage deposit should there be any damages incurred to the suite when the tenant vacates.

6. The only way to get vacant possession of an entire property that has tenants is if the purchaser and direct family members (parents, spouse, or children) will be occupying the main home and suite(s). As of November 2024, the tenants must be given 3 months notice to vacate plus last month’s rent free. Notice to vacate as per the RTB, is served with final condition removals. The notice must give ample time for the tenant to receive before the day the next month of tenancy begins. For example if the rent is due the first of every month, notice is best served before the 25th so the tenant has a week to receive the notice. If there is a lease in place, the purchaser cannot have the lease end early unless there is a Mutual Agreement to End Tenancy signed by the current Owner and the Tenant.

There’s a lot to know! Make sure you are fully comfortable and informed when buying or selling tenanted properties. Ilana is the absolute best and is here to help with all your real estate needs!