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Doing Repair and Maintenance Work in Strata Properties, on Vancouver Island

Posted on June 4, 2021June 4, 2021 by comoxvalley

Doing regular repair and renewals work and having a good preventive maintenance program needs to be a priority for all strata corporations, big or small.

Strata corporations on Vancouver Island must maintain and repair shared common property and assets. In some strata corporations, sections and types also have repair and maintenance responsibilities. For bare land strata corporations (“strata subdivisions”) repairs and maintenance for common property can include private roads, water, and sewage pipes, and other infrastructure.

Strata corporations and strata lot owners with home warranty insurance could also risk limiting their coverage because of negligent or improper maintenance.

Renovating my condo: What can I do?

We often see home renovations as a necessity and not as a luxury to improve our environments and protect our investments. Because many strata corporations have not provided sufficient funding for long-term repairs, owners often tap into their resources for special levies and leave their units unattended. Every strata home at some point will need some renovations and upgrades and while it may be the next owner who takes up the paintbrush and starts improving their space, doing the renovations in a way that keeps you in line with your strata bylaws and neighbors are just as important as the renovations you are considering.

The Plan-Do-Check-Act model

The “Plan, Do, Check, and Act” (PDCA) model can be useful for strata councils and section executives to approach maintenance, repairs, and renewal work. The PDCA model is also known as the Deming model or the Deming wheel.

Planning: the strata council knows who is responsible for what maintenance and renewal work (strata corporation, sections, types, strata lot owners), prioritize the work, assign responsibilities for getting the work done, budgets, and communicates with owners.

Doing: the strata corporation approves funding and the strata council hires contractors and ensures the work is done.

Checking: the strata council ensures that the condition of common property and assets is checked, and maintenance and renewal work is inspected.

Acting: the strata council acts to revise plans and budgets, update documents, communicate with owners, and continue repair, maintenance, and renewal work.

Planning

The depreciation report, a maintenance manual and other documentation are very helpful tools for the strata council in planning repair, maintenance and renewal work.

The strata council (or section executive) will need to:

know who is responsible for what repair, maintenance, and renewal work (strata corporation, sections, types, strata lot owners).
identify and assign maintenance and repair roles and responsibilities.

It is also invaluable to get advice from knowledgeable professionals. Developing ongoing relationships with contractors who have worked on the strata corporation’s common property and assets is very helpful.

Timing considerations

Maintenance, repair and renewal work may be presented as individual tasks. The strata council (or section executive) will want to:

Organize tasks in a logical order.
Are there opportunities to group activities together to save money and/or minimize disruption to owners and residents?
Develop a list of maintenance and renewal work to be conducted over the next year, the next two years, the medium term and the longer term.

Budgeting

The depreciation report and maintenance manual will be very helpful in planning and budgeting. The strata corporation will need to plan for both types of common expenses: operating fund expenses for work done once a year or more often and contingency reserve fund expenses for work done less often than once a year.

The depreciation report may identify certain “peak years” for maintenance, repairs and renewals – years when many items will need replacing at the same time. That may be because standard lifespan estimates are often multiples of four or five. Or it may just be the way the numbers add up.

If these peak years lead to temporary shortfalls, consider “flattening the peaks” by spreading out the work over several years.

For example, the strata corporation could get full value out of carpets that are in good shape by replacing one-fifth of hallway carpets every year for five years, starting with the carpets in worst shape or by replacing carpets in the lobby on a more frequent basis.

Be careful though not to lose out on bulk discounts or savings by not having contractors complete all the work while they are on site.

The depreciation report will provide three different cash-flow models for consideration by owners. For example, cash-flow models could outline funding work from the contingency reserve fund (CRF) only, from special levies only, from increasing strata fees, or from a combination of approaches.

Another issue to consider when budgeting is how much flexibility is provided and how much transparency and disclosure is provided? Are the maintenance and renewal tasks listed as individual items in the budget (which places some limitations on how money is spent), or are they grouped together?

Getting work done

A solid preventive maintenance program should be a priority for any strata corporation.

After the budget is determined, funds are approved, contractors selected, and necessary permits obtained—conduct the maintenance, repair and renewal work.

Work can include systems reviews as well as minor maintenance, major maintenance, repair and renewal. Routine maintenance can extend the life of interior finishes, decks, roads, machinery, equipment, and other assets.

Have regular physical inspections of systems and assets by qualified professionals. This can mean annual or monthly inspections or some other frequency. Regular inspections can spot small problems before they become big ones.

It is important to have maintenance, repair and renewal work completed by qualified personnel and companies and that they meet WorkSafeBC requirements. The qualifications will depend on the type of common property and other assets for which the strata corporation is responsible.

The strata council will need to decide on how to get the work done and how work will be contracted. Does the strata have a bylaw that sets out minimum standards for tendering and procurement? Some strata corporations will negotiate some of these services as part of the strata management contract or hire staff. Services can also be independently obtained.

If there are bids, decide on the timelines, who will review bids, who will negotiate the contracts and ensure that it meets legal requirements such as WorkSafeBC. Strata associations have examples of Request for Proposals (RFP) or Call for Bids (CFB) on their websites.

Make sure to document the maintenance, repair and renewal work. Documentation provides key information regardless of changes to the strata council and strata managers.

Communicating with owners

Communicating with owners and residents about their homes and investments is essential in in repair, maintenance and renewal work. The strata council plays a key communications role.

The designated person (or committee) will need to work with staff and contractors, report and explain findings and recommendations to the strata council. Council in turn will need to communicate with strata lot owners and residents.

It is vital to regularly communicate with owners on repair and maintenance work including: planning the work, funding the work and reporting on progress.

It is a good idea to provide information to strata lot owners well in advance of general meetings. Many stratas hold information sessions for owners and residents to discuss plans, objectives and costs six weeks or so in advance of annual or special general meetings.

As well, the strata council should:

regularly remind strata lot owners and residents what they are responsible to repair and maintain (for example cleaning patios and balconies)
check this work
ask owners to report maintenance problems – whether in the strata lot or common property – promptly to the designated contact on strata council or strata property manager. This helps the strata corporation to identify and quickly address emerging problems.

Checking and acting

It is important to inspect work and common property and see how effective the renewals and maintenance work is. Is common property in good repair? Does the strata corporation have a proactive approach or a reactive one?

While buildings and assets always age, owners can help protect their investment with careful maintenance and care in operation to help buildings and other assets achieve their full life span. Owners can get the best value for their money and avoid being surprised with unexpected repair costs.

Meet Gord

Gordon McKinlay is the owner of PropertyGuys.com in the Comox Valley & North Vancouver Island. Gordon loves helping people sell their own homes and save tens of thousands of dollars.

PropertyGuys.com has developed a system that has helped over 90,000 private home sellers in Canada to sell their homes successfully. PropertyGuys.com is the largest private home sales network in Canada.

Selling? Learn more about how PropertyGuys.com works call 778 557 8596 or contact us here!

Selling Tenant Occupied Properties

Posted on May 10, 2021June 4, 2021 by comoxvalley

What you need to know

If you’ve thought about selling your tenanted property, there is a lot to keep track of to ensure that you are following tenancy law.

This blog goes through frequently asked questions regarding selling your tenanted property.

We answer the important information like how much notice you need to give, compensation to the tenant, and more.

Read on for everything you need to know about selling your tenanted property in BC!

Rules regarding notice to end the tenancy if you have a MONTH TO MONTH TENANCY:

The buyer and seller are required to give Two months notice to end tenancy if month to month tenancy and the buyer plans to live in the property. Written notice is required. A landlord must serve the Two Month Notice to End Tenancy so that it’s received:

At least two months before the effective date of the notice, and
Before the day that rent is due

For example, if rent is due on the 1^st of every month and you receive a firm deal on March 15:

You would give notice prior to April 1^st. If the tenant acknowledges it received by March 30^th then the two months notice is now effective April 1^st.
The entirety of April & May would constitute two months’ notice.
The buyer could move in as of June 1^st.

It is important to note that FOUR MONTHS NOTICE is required if the tenancy is being ended for demolition, renovation, repair, or conversion by the buyer.

Rules regarding notice to end the tenancy if you have a FIXED TENANCY AGREEMENT:

If the tenancy is in the form of a lease, the new buyers of the property cannot move in until the lease expires, unless otherwise mutually agreed to by both parties.

The new buyer will have no power over whether or not the tenancy will end early.

The only way to end this type of tenancy early is if both the seller (current landlord) and the tenant(s) agree and complete a “Mutual Agreement to End Tenancy” form.

Can I serve the tenant notice to vacate because I’m selling my home?

No. You cannot kick the tenant out just because you are selling the property. The tenant has a right to continue living on the property.

When do I owe compensation to the tenant for selling my home?

As a landlord, you would be required to give the buyer the equivalent of one month’s rent if:

You serve a two-month notice to end the tenancy
You serve a four-month notice to end the tenancy

After a tenant has received this notice from the landlord they are still entitled to compensation even if they choose to leave at an earlier date than served.

The tenant may choose to not pay rent in the last month of the tenancy instead of taking payment from the landlord.

You do NOT owe the tenant compensation if they serve you notice to end tenancy or state that they are ending their tenancy.

Can the buyer take over the tenancy?

Yes, the buyer can take over the tenancy.

If desired, the new buyer can arrange a new agreement to be drafted with or without amendments to the terms and conditions already stipulated.

If the buyer takes the title of the property later than the 1^st of the month, the rent for that month is typically adjusted and split between the buyer and the seller.

The security deposit originally collected is typically credited to the buyer upon completion.

If the buyer wants to move into the home, what do they have to serve in terms of paperwork?

If the buyer would like the home to be vacant at the time of possession, on the contract of purchase and sale in the “possession” section of the contract they would add ‘vacant’ in addition to their move-in date and time.

The buyer must also serve a written notice to tenants to move in, which would be provided by the buyer’s agent to the buyer to sign off on and then deliver to the seller’s agent.

When should I give my tenant notice to move out if I am selling my house?

When you decide to list your home, make sure to inform your tenant that you are selling.

It’s not certain that you will sell your home right away or if the new buyers would be interested in keeping the tenants, so it is usually best to give the tenant notice upon a firm deal (once you have an accepted offer with subjects removed) given the new buyers require the home to be vacant upon possession.

If the new buyers want to move into the property, then the proper notice will need to be given and the completion dates must align with tenancy law.

How do I deal with showings for the property?

The seller/landlord must give the tenant 24-hour written notice to show the property, which must include the date and time, as well as the reason for entry – in this case a potential buyer showing.

Generally with showing requests between the hours of 8 am-9 pm.

Written notice is the best way to deal with this, rather than calling them, try to make sure there is some sort of confirmation to show that you gave them 24 hours’ notice. A text message or email is not considered a method of written notice.

Is the tenant required to vacate during showings?

The tenant does not have to comply with vacating the unit during showings, as landlords and realtors have to balance their need to show the unit with the tenant’s right to quiet enjoyment.

In the event that you catch the tenant providing dishonest or falsified information about your rental property to the prospective purchaser, Section 47 of the Residential Tenancy Act allows a landlord to issue a One Month Eviction Notice for Cause for knowingly giving false information.

How can I deal with an uncooperative tenant?

There are a couple of different ways to deal with uncooperative tenants when selling your house. Usually, if they’re uncooperative, it’s when showings are occurring. Do what you can to prep them in advance, and let them know that you will always give them 24 hours’ notice as per the Tenancy Act.

If you want to, you can make a schedule with them in advance and have your realtor try their hardest to only show during those designated times. But keep in mind, the majority of buyers won’t re-book a showing if the first request is rejected, and it is your right to show the property as long as you give 24 hours’ notice. Don’t let the tenants bully you into only 2 hours a week of showing times… but if they give you a fairly wide range like 2-8 PM Monday to Friday and 10-2 PM on Saturday and Sunday, then it might not be a bad idea to go that route.

If issues continue to occur after already having prepped them, opt for the following:

Approach the tenant(s) directly and try to resolve the issue. See how you could make it easier for them when showing the property, and share your concerns as well.
Supply the tenant with a copy of your rights and responsibilities as well as theirs, as per the BC Residential Tenancy Act with regards to showing and selling the home.
Serve One Month Notice to End Tenancy for Cause for cause.

OTHER HELPFUL TIPS FOR SELLING TENANTED PROPERTY:

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Tip #1: Don’t leave it all to the tenants! Work with them.

Hire a cleaner to go through the property and spruce it up a bit prior to taking pictures for the property. (it’s tax-deductible!)

Ask the tenants if there’s anything that they’ve noticed that needs to be cleaned or even fixed (if they hadn’t mentioned it to you before), and make sure that’s all completed before a buyer has an inspection on the property.

The more you help them get through the hassle of selling their “home” and potentially having to find a new home ASAP, the more cooperative they will be.

Tip #2: If you’re thinking about selling in the near future, don’t get into a new lease.

Wait for your current lease to expire, then switch over to the month to month if your tenant is still interested in staying in your unit. Potential buyers may need a relatively quick possession, and a long completion date (i.e. 6-12 months) can have an impact on your sales price.

Tip #3: If you’re not thinking about selling anytime soon, make sure to increase your rents accordingly every year.

A number of buyers may be looking to take over the tenancy, and if that’s the case they will want to make sure that they’re receiving market rent.

The amount of money that your tenant pays will have a direct effect on the price that your tenanted property sells for, so make sure that you’re increasing your rent within the parameters of the law accordingly.

Tip #4: It’s usually more difficult to sell and market a tenanted home, make sure that you really communicate well with your tenant about the sales process before you list.

Marketing goes a long way, and if your tenant is really messy it can affect online marketing in terms of pictures, the virtual tour, and showings. It can also shy away from buyers that come in to look at the property, but can’t see past the junk.

Try your best to communicate with your tenant beforehand, let them know that photography is important and your home needs to show well the day the pictures are taken, and also while the home is being shown.

Explain to them that you’ll give them lots of notice, 24 hours is plenty, and you’d appreciate it if they would cooperate with you, and that you’ll do the best you can to communicate with them and hopefully have an investor purchase.

Tip #5: Be aware of your rights. Read through the BC Residential Tenancy Act beforehand.

Don’t let your tenant bully you around and only book showings between certain times. You are entitled to show the home if you give them 24 hours’ notice. Do your best to be respectful of them and only show between 9 AM-8 PM, no later and no earlier.

Meet Gord

Gordon McKinlay is the owner of PropertyGuys.com in the Comox Valley & North Vancouver Island. Gordon loves helping people sell their own homes and save tens of thousands of dollars.

To learn more about how PropertyGuys.com works call 778 557 8596 or contact us here!

Campbell River Market Update for February 2019

Posted on January 27, 2020February 4, 2020 by admin

By Gordon McKinlay
PropertyGuys.com Comox Valley & North Vancouver Island

Campbell River Market Update for February 2019

The monthly Campbell River Market Update for February 2019 shows, “Locally, the benchmark price of a single-family home in the Campbell River area hit $418,100, an increase of eight per cent over February 2018. Trend-wise, despite continued price increases, VIREB’s housing market has transitioned from one favouring sellers to one that is balanced or near balanced. Balanced markets offer buyers more choice and more room to negotiate, while sellers may need to curb their expectations. When fewer buyers are competing for a property, sellers need to be far more strategic. We’ll conduct a comparative marketing analysis using recent sales data to determine an optimal selling price for your home. Sellers need to realize the glory days of 2016 and 2017 are over. We’re seeing a clear disconnect between buyers and sellers. Many people still want to list their homes at 2016 and 2017 prices, and that just isn’t realistic.” says Kaye Broens, 2019 President.

Source: Vancouver Island Real Estate Board – MLS® Statistics

Single Family - Campbell River Real Estate Market - Feb 19

Lot - Campbell River Real Estate Market - Feb 19

Market Legend

Seller’s Market – In a seller’s market, conditions are favorable for sellers to get higher prices for their homes. The number of buyers who want homes exceeds the number of homes available. In this type of market, the homes sell quickly, prices will increase, and a large number of buyers are available for a minimal inventory of homes. These characteristics have implications for the buyer who has to make decisions quickly, must pay more, and frequently has their conditional offers rejected.
Balanced Market – In a balanced market, the number of homes on the market is equal to the demand or number of buyers. Houses sell within a reasonable period, the demand equals supply, sellers accept reasonable offers, and prices are generally stable. The implications for the buyer in this type of market are that the atmosphere is more relaxed. There is a reasonable number of homes from which to choose.
Buyer’s Market – A buyer’s market allows buyers to come in at lower prices. The supply of homes on the market exceeds the demand or the number of buyers. Homes will be on the market longer, fewer buyers will be available compared to the higher inventory of homes, and house prices are reduced. The implications for the buyers in this type of market are more favorable, negotiating leverage, more time to search for a home, and better prices.

Meet Gord

Gord is the owner of PropertyGuys.com in the Comox Valley & North Vancouver Island. Gordon is a private sales expert who loves helping people sell their own homes and save tens of thousands of dollars. He has created this article to help others sell their homes privately. For more information, download his free Guide to Selling Without an Agent.

Campbell River Market Update for January 2019

Posted on January 27, 2020February 4, 2020 by admin

By Gordon McKinlay
PropertyGuys.com Comox Valley & North Vancouver Island

Campbell River Market Update for January 2019

The monthly Campbell River Market Update for January 2019 shows, “Last month, the benchmark price of a single-family home in the Campbell River area hit $412,300, an increase of 12 per cent over January 2018.. VIREB’s housing market has transitioned from one favouring sellers to one that is balanced or near balanced. Reports show fewer multiple offers, with many buyers taking more of a wait-and-see approach. Some are waiting until spring in the hope that inventory goes up and prices come down. Balanced markets offer buyers more choice and more room to negotiate, while sellers may need to curb their expectations. Right now, many sellers still want to list their homes at 2016 and 2017 sale prices, and that just isn’t realistic. When fewer buyers are competing for a property, sellers need to be far more
strategic. Use recent sales data to determine an optimal selling price for your home.” says Kaye Broens, 2019 President.

Source: Vancouver Island Real Estate Board – MLS® Statistics

Single Family - Campbell River Real Estate Market - Jan 19

Lot - Campbell River Real Estate Market - Jan 19

Market Legend

Seller’s Market – In a seller’s market, conditions are favorable for sellers to get higher prices for their homes. The number of buyers who want homes exceeds the number of homes available. In this type of market, the homes sell quickly, prices will increase, and a large number of buyers are available for a minimal inventory of homes. These characteristics have implications for the buyer who has to make decisions quickly, must pay more, and frequently has their conditional offers rejected.
Balanced Market – In a balanced market, the number of homes on the market is equal to the demand or number of buyers. Houses sell within a reasonable period, the demand equals supply, sellers accept reasonable offers, and prices are generally stable. The implications for the buyer in this type of market are that the atmosphere is more relaxed. There is a reasonable number of homes from which to choose.
Buyer’s Market – A buyer’s market allows buyers to come in at lower prices. The supply of homes on the market exceeds the demand or the number of buyers. Homes will be on the market longer, fewer buyers will be available compared to the higher inventory of homes, and house prices are reduced. The implications for the buyers in this type of market are more favorable, negotiating leverage, more time to search for a home, and better prices.

	The Average Sale Price this year ↑ increased by 12% ↑ from last year. This year’s Average Sale Price was $460,064. There are 3.35 Months of Inventory of Single Family in Campbell River. It is currently a Soft Sellers Market. This month’s Inventory increased to 104 Active Listings. There were 47 units listed and 31 units sold. PLEASE NOTE: SINGLE FAMILY property does NOT INCLUDE acreage with a house, condominiums, duplex/triplex, mobile homes/on a pad, single-family waterfront or single-family strata. LOTS do NOT INCLUDE acreage or waterfront acreage.
	The Average Sale Price this year ↑ increased by 40% ↑ from last year. This year’s Average Sale Price was $229,417. There are 8.5 Months of Inventory of Lots in Campbell River. It is currently a Strong Buyers Market. This month’s Inventory increased to 17 Active Listings. There were 3 units listed and 2 units sold.
	The Average Sale Price this year ↑ increased by 14% ↑ from last year. This year’s Average Sale Price was $252,123. There are 5.25 Months of Inventory of Condos (Apt) in Campbell River. It is currently a Balanced Market. This month’s Inventory increased to 21 Active Listings. There were 5 units listed and 4 units sold.
	The Average Sale Price this year ↑ increased by 1% ↑ from last year. This year’s Average Sale Price was $364,120. There are 3.33 Months of Inventory of Condos (Patio) in Campbell River. It is currently a Soft Sellers Market. This month’s Inventory increased to 10 Active Listings. There were 5 units listed and 3 units sold.
	The Average Sale Price this year ↑ increased by 18% ↑ from last year. This year’s Average Sale Price was $238,465. There are 1 Months of Inventory of Condos (Twnhse) in Campbell River. It is currently a Avg. Sellers Market. This month’s Inventory remained the same to 4 Active Listings. There were 4 units listed and 4 units sold.

	The Average Sale Price this year ↑ increased by 12% ↑ from last year. This year’s Average Sale Price was $457,245. There are 3.92 Months of Inventory of Single Family in Campbell River. It is currently a Soft Sellers Market. This month’s Inventory increased to 94 Active Listings. There were 54 units listed and 24 units sold. PLEASE NOTE: SINGLE FAMILY property does NOT INCLUDE acreage with a house, condominiums, duplex/triplex, mobile homes/on a pad, single-family waterfront or single-family strata. LOTS do NOT INCLUDE acreage or waterfront acreage.
	The Average Sale Price this year ↑ increased by 40% ↑ from last year. This year’s Average Sale Price was $224,616. There are 12 Months of Inventory of Lots in Campbell River. It is currently a Strong Buyers Market. This month’s Inventory increased to 18 Active Listings. There were 1 units listed and 0 units sold.
	The Average Sale Price this year ↑ increased by 13% ↑ from last year. This year’s Average Sale Price was $250,460. There are 1.62 Months of Inventory of Condos (Apt) in Campbell River. It is currently a Avg. Sellers Market. This month’s Inventory decreased to 21 Active Listings. There were 4 units listed and 13 units sold.
	The Average Sale Price this year ↑ increased by 3% ↑ from last year. This year’s Average Sale Price was $367,356. There are 12 Months of Inventory of Condos (Patio) in Campbell River. It is currently a Strong Buyers Market. This month’s Inventory increased to 10 Active Listings. There were 4 units listed and 0 units sold.
	The Average Sale Price this year ↑ increased by 15% ↑ from last year. This year’s Average Sale Price was $231,305. There are 1 Months of Inventory of Condos (Twnhse) in Campbell River. It is currently a Avg. Sellers Market. This month’s Inventory remained the same to 4 Active Listings. There were 4 units listed and 4 units sold.