Here's a very interesting article that gives some good insight into the rental restrictions so prevalent in strata bylaws. I personally think that in many markets these bylaws work against condominium owners looking to maximize the return on their investment. At first glance it seems like a good way to prevent your building from becoming excessively transient, and if your a retiree planning on living in that building for the next 50 years, then its probably a good bylaw to support. However, the majority of condo owners nowadays will not own their unit for that long and when they go to sell their unit they want to make their unit as attractive as possible for the largest number of potential buyers. In many markets, long term investors, short term speculators, and seasonal owners can make up a significant portion of the market of potential buyers. A rental restriction in a condo building removes a significant number of these prospective buyers from the market, which in theory, will result in less demand for your condo, and subsequently a lesser sale price than if there was no rental restriction.
My advice to condominium owners would be to remove any rental restriction bylaws and educate their strata members on the importance of screening prospective renters, insuring that your building maintains its attractive appearance. That's just my opinion based on what I see in the market. You may see it differently. jc.
Comments (1)Subscribe to CommentsComment