Allowable Rent Increase for 2016

Here is information on the allowable rent increase for 2016 courtesy of PAMA:

Rent Increases

 Landlords can only increase the rent once a year by an amount permitted by law or an additional amount approved in advance by an arbitrator – they need to use the right form and give the tenant three full months’ notice of the rent increase. 
  • The maximum allowable rent increase changes each year. The limits for residential tenancies and manufactured home park tenancies are different. For residential tenancies, the standard allowable rent increase for 2016 is 2.9% 
  • For manufactured home park tenancies, the standard allowable rent increase for 2015 is 2.9% plus a proportional amount for the change in local government levies and regulated utility fees.

More details

At Downtown Suites we advise all owners of the regulations regarding rental in the province of BC.






























































































































































































































































































































































































































































Leases are Binding Documents

From a conversation regarding leasing situation:

A while ago we had a tenant come to us and say they can’t afford to continue on in the residence and they’re renting one of the more expensive suites in one of the more prestigious buildings in town. The rent’s about $7000 a month. So – a difficult situation. They told us they probably won’t be able to pay the rent next month. We can’t do anything, we can’t re-lease the suite or do anything until we actually get a written notice from the tenant.

Now once the tenant breaks the lease they are liable for any losses or damages that the owner might incur as a result of their lease breaking, so if they’re 3 months into the lease and they’ve got 9 months to go and it takes us 7 months to get the suite rented we would have the right to go to arbitration for 7 months rent.

Plus they’re also responsible for the re-leasing fee which is half a month’s rent. So something that need to be thought of quite carefully especially if you’re a tenant, when you are signing a lease you are responsible for the full term of it.

Generally speaking we’re able to re-rent suites fairly quickly. In fact, in this instance we have a fellow actually say that he wanted to take it for the first of the month – because we had put an ad up to try and mitigate any damages for the owner, and the tenant. But at the moment, the tenant is travelling and we haven’t got the signed notice so there’s nothing we can do. We can’t enter into another lease agreement until we have that notice.

At Downtown Suites we’re trying to mitigate costs for everybody. We don’t want to be the bad guy, at the same time you have to protect everybody’s rights, and that includes the landlord, obviously. We’re also very conscious of trying to be helpful to the tenant. Situations in life do change- people get transferred This chap’s financial situation has changed even though he had a very stable credit background for a long time, something’s happened and that changes.

We do try to mitigate and we do try to rearrange as quickly as possible. But it’s something to remember, that there are when you’re a tenant.

From the landlord perspective there’s an obligation too. Once you’ve signed the lease you are not able to do anything with the property, you can’t move into it. The lease takes precedence, the lease runs with the lands. So even if you sell your apartment or property, you can’t evict the tenants, the tenants are there for the term of the lease. You can ask the tenants if you can show the suite – they more or less have to oblige for that with 24 hour notice. But even if you do sell it, the new owners have to take on those tenants. You can’t raise the rent, and actually you can’t make any other changes whatsoever. The lease is firm for the full term.

We like to take a one year lease at Downtown Suites because one of the other concerns we have is that we have some sort of longevity with a tenant. We don’t want somebody using it just as a crash pad and then walking away. So we like to have people in for one year and after that we go month to month. We don’t renegotiate actual leases because it gives the landlord more flexibility should they want to sell or should they want to move in. Then it’s a 60 day notice situation and they can either move in or the new owner can move in.

It is something to be concerned about: leases are binding legal documents.

Selling vs Renting

We met with an owner today who had a property and was unable to sell it without a drastic discount in the current market as she needed the equity to be transferred to a recent purchase.

After crunching the numbers, it turned out that by renting she would be about $500 better off by retaining the suite and renting it out through Downtown Suites.

How did we arrive at this number? By determining her net equity in the old suite after selling, then calculating how much the new mortgage would be lowered by reducing the equity amount compared with the rental income, less expenses.
This one example shows a very good reason why you should consider renting as opposed to selling.

In addition, consider this:

  • If your property is sold you may not be able to get back into the market so easily later on.
  • Rents will go up over time, we are allowed to raise rents by 4.3% annually ( this increase % fluctuates yearly and is set by the provincial government.)
  •  The principal owing will reduce as it is paid down, providing you with more monthly income.
  •  The tenant will pay most of the costs for your holding the property.
  • Finally, the suite of course will continue to appreciate as well over time.

This particular suite was what we call a blue chip investment, right on the water front on Marinaside Crescent in Yaletown. They are not building any more real estate there and this suite will definitely continue to be more valuable and sought-after.

If you are currently trying to sell your suite in this depressed market, we encourage you to discuss with us at Downtown Suites how we can maximize your rental income and preserve your investment.

Sales and Market Update Video

Nicholas Meyer’s overview of the sales and rental market for early 2011.

December Market Update

Here is Nicholas Meyer’s latest update video on the December real estate sales and rental marketWe welcome your comments and questions.

Are Your Staircases to Code?

Just another Day in the Life of a Property Manager. This time: Code violations. Does your condo have renovations or additions? Are your staircases to code? Nicholas Meyer of Downtown Suites discusses a couple of staircase code situations in Vancouver condos.

A Day in the Life of a Property Manager: The Lease

Just another Day in the Life of a Property Manager. This time it’s a tricky situation involving a broken lease and written notice!
Nicholas Meyer of Downtown Suites explains the ins and outs of leasing in Vancouver. Good info for both landlords and tenants.

Real Estate Sales and Rental Rates, Nov. 2010

Our regular report on Vancouver real estate sales and condo rental conditions. An overview of the November 2010 market with Nicholas Meyer of Downtown Suites Ltd.

Downtown Suites Presentation
Ozzie Jurock and Nic Meyer
Ozzie Jurock and Nic Meyer
Real Estate Action Group, Sept. 2010
Real Estate Action Group Meeting

Nic Meyer and Lisa Taylor recently presented to Ozzie Jurock’s Real Estate Action Group, for their September Meeting.

Talking about the pitfalls to avoid in renting suites and condos, Nic and Lisa went over all the reasons why hiring a professional property management company is the smartest way to go.

The talk is here in 4 parts, along with slides from the presentation.

Video Part 1, Introduction from Ozzie Jurock. Why hire a professional management company? What does a management company do for you as an owner/investor?

Video Part 2, Pitfalls and tenant issues and how to avoid them

Video Part 3, More on pitfalls and tenant issues and how to avoid them

Video Part 4, Tenants to look out for, the value of working with experienced professional management, advice for owners.

View the slides that accompanied the talk

May Rentals and Leasing Process

Lisa Taylor and Nicholas Meyer discuss May rentals and also outline the leasing process used at Downtown Suites Ltd. in Vancouver BC.