BC governments often comment on the affordability housing crisis especially in Vancouver. A small change to the Strata Property Act could make renting more affordable. A recent CRT decision VIS5602 vs Copeland, to uphold a Strata Corporation fines against an owner who’s daughter was residing in her strata lot and then had a “roommate, friend or companion” move in with her is part of the affordability issue. 

Many Strata Corporations have bylaws prohibiting the renting of “part of the strata lot”. Some people have units with more than one bedroom which is not being used and could be rented by the owner. Governments are always looking for ways to reduce the cost of renting for tenants. One way to make it more affordable is to restrict Strata Corporation’s right to prevent a person from renting “a portion of their strata lot”. Many Strata Corporations have bylaws preventing owners from renting a portion of their strata lot, similar to the VIS 5602  Bylaw which reads “that an owner, tenant or occupant must not rent less than all of a strata lot.”

If an owner has a two bedroom condo or townhouse and they are willing to rent to a roommate should they be allowed? If the owner resides in the unit why should they be prohibited from renting their spare bedroom. The wording of the bylaw in the recent CRT case could be applied if an owner had a friend, brother or sister move in with them as a roommate, the owner would be in violation of renting less than all of the strata lot. The interesting part of the CRT case is the adjudicator used definitions from the Residential Tenancy Act to define their argument of what rent and a tenant is. Section four of the residential tenancy act outlines what the act does not apply to. It states the Residential Tenancy Act doesn't manage a “living accommodation in which the tenant shares bathroom or kitchen facilities with the owner of that accommodation” If the Residential Tenancy Act doesn’t recognize these situations, is it a “rental”?.  

Many Strata Corporations have similar bylaws like the one in this CRT case effectively prohibiting a “roommate” type situation even when an owner resides in the property. The government should amend the Strata Property Act prohibiting bylaws preventing an owner from renting a portion of their strata lot, when they reside at the unit. This would increase the amount of rental stock available reducing costs of renting and making housing more affordable. 

Moving forward after 2020 this could have a larger impact for renting and housing affordability in all municipalities. If work changes and employers continue to allow workers to work remotely they may need more space for a home office, and may choose to relocate to a less densified area. Will downtown Vancouver become less expensive to rent or own than the suburbs due to demand based on the size of the properties. Some companies have indicated altering wages based on employees who work from home. If wages change will owners be able to afford to live in their current spaces, would renting the spare room help with the cost of living. 

I have already encountered potential tenants moving from the city to the suburbs for a larger space for comparable rent due to employers allowing them to work remotely. If that trend continues owners in larger cities may need to offset loss of income to continue to afford their current cost of living. Will Strata Corporations allow owners to rent “portions” of their strata lot under hardship claims if their income has changed.     

The rental housing market may change drastically in the near future, due to technology and how efficient business has operated during these times and employees' unwillingness to  commute for work. 

Renting your property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com

https://decisions.civilresolutionbc.ca/crt/sd/en/item/487216/index.do