“There’s a townhouse up for rent in a new(ish) development near my place that is owned by a realtor. After several unsuccessful attempts to sell he gave up and is offering it for a long term lease.”

“There’s a townhouse for rent in a new(ish) development near my place that is owned by a realtor and after several unsuccessful attempts to sell he gave up and is offering it for a long term lease.
The place is fairly expensive to rent, but still a fraction of what it would cost to buy.
Now get this – when I inquired about it, the reply I got stated that “the owner will pay property taxes, but I would be responsible for maintenance and strata fees” at around $350 a month on top of the rent.
OMFG, I still cannot stop laughing…”

vanpire at VCI 2 Mar 2013 2:05pm

The owner was unsuccessful in their attempt to sell.
This simply means that the owner has an overinflated idea of the value of the property.
Drop the price steadily until it hits a bid. That’s the market value.
And, yes, the statement regarding the addition of the strata fee is indeed laughable.
Trying to make a high rent sound lower. Unlikely to draw anything other than laughs.
– vreaa

27 responses to ““There’s a townhouse up for rent in a new(ish) development near my place that is owned by a realtor. After several unsuccessful attempts to sell he gave up and is offering it for a long term lease.”

  1. It sounds like they’re trying to apply commercial lease practices (e.g. triple net or similar) to residential tenancies.

  2. That is not allowed under the Residential Tenancy Act

  3. Cyril Tourneur

    Why it’s about to get even better to rent. Unwilling to sell at a loss, just rent it out. But to who? Going to have to lower the rental rate to catch a bid.

    • I agree, most people don’t even have a clue about being a landlord, been there for 15 years. Will only rent land now….wow!!! i can’t believe people buy 700 sqft boxes for 3-400k, blows my mind with the strata fees that only go up like taxes.

  4. Likely this owner will end up selling in a year or two anyway out of desperation, and the price he could get now (while less than he’d hoped) will look like a sweet dream by then.

    • No problems. He will have all those used car sales commissions to balance the books.

      • True. And since everyone knows that Vancouver used car prices only go up, he’ll invest in five or six extra himself!

  5. Two steps down the road to the “triple net lease”:

    “A lease agreement that designates the tenant as being solely responsible for all of the costs relating to the asset being leased in addition to the rent fee applied under the lease. The structure of this type of lease requires the lessee to pay for net real estate taxes on the leased asset, net building insurance and net common area maintenance. The lessee has to pay the net amount of three types of costs, which how this term got its name.”

  6. Maybe he “can’t afford to sell”.

  7. Why is there no project name in this story to prove that it’s real?

    • 4SlicesofCheese

      Why are you so paranoid?
      What gain would the poster have in fabricating a story? To convince a few bears? Get real.

  8. Actually I don’t see anything wrong with asking renter to pay these costs. It’s not like people are holding a gun to the renter’s head to rent this property, and as I have been repeatedly told on this forum and VCI there is no rental shortage. So why not allow renter and landlord to negotiate what they feel is acceptable to both parties? If it is a triple net lease, why not?

    • Realtor behavior

      The problem here is who knows the landlord wouldn’t file the “triple net expenses” in his investment credits? BTW, BC renters are not even furnished with the benefits of claiming rent expenses as the torontonians, as such will also lead to a higher chance for the landlords to “just forgot” to file that mortgage helpers from their basement!

  9. it is against the rules, because of this any landlord willing to enter into this type of agreement is a fool as the extra maintenance and condo fees are not enforceable.

  10. I hear the points re: strata fees not OK according to RTA, but they can just roll it into rent. In effect it’s just a higher rent. They wouldn’t be able to pass on increases above the RTA allowable rent increase though (e.g. if strata fees rise).

    • That could a very good point, Andrew. OTOH, you could argue that only the rent portion could be increased, and only by the allowable amount, so a long-term tenant could win on this, assuming no strata increase. But probably not at the likely delusional rent being asked.

    • Rolling it into rent is fine by me :). But then you have to find some sucker to pay higher rent! Not that easy… Most renters have a rule of thumb when renting a property that they keep in mind that can be, as is in my case unrelated to income. IE. I personally try not to go over $500 a bedroom all inclusive. If it does I would use other amenities as adjustments of what I’m willing to bear. Currently my rent is only 18% of my income so it serves me well anyways. Some renters actually prefer a rental that is a little worn as long as its got the basics.. Laundry, dishwasher etc. most could care less for stainless steel and granite countertops…. Those trappings are nice, but not worth the money since you have to constantly worry about leaving it in perfect condition…

  11. Good to be out

    Here’s one I came across today while driving on MacDonald near King Edward that I think is worthy of the Linguistic Contortions/RE Spin Category – a for sale sign with an additional sign board on top that said “PRICE IMPROVED” instead of the usual “Price Reduced”. That made me chuckle.

    • Good one.
      Added.

    • I just love these linguistic contortions. “Reduced” is no longer a comfortable term. Just like “pullback, breather, pause” and so many others that are code for the same thing: PRICES GOING DOWN.

      Next thing you know, people who have lost their shirt will be said to have experienced a financial “adjustment”.

    • Real Estate Tsunami

      Some also say “New Price”.
      Combined would be “New & Improved Price”.

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