Quote:
Originally Posted by RyeJay
So a relatively small number of investors are renting out their units? Why is that?
If people really are being kept out of the downtown, you'd think investors would want to take advantage of those market conditions and begin renting out units because of the demand.
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There are two sides to the story in dt Calgary.
The vast majority of the buildings built are condo - yes. But what is happening is owners are turning around and renting out units. The building I live in is a great example - build in the last 70's, it is a combo of rental and owner. The management company owns a number of units in a rental pool and then owners who want to rent their units out can add their units in to the rental pool and earn revenue from that (less administrative fees).
But DJ is correct; the vast majority (if not all) the new buildings in downtown are ownership. It's just that the ownership structure of the unit is different (rather than owned by a rental company like 1881 Brunswick (for example) - individual owners may rent them out instead or the condo corp creates a rental pool).
The challenge becomes the enforcement of tenancy laws and who is the landlord. If I own a unit and put it into a rental pool that Ryejay's company runs; then Ryejay's company is the landlord because through my contract to him - he's taking responsibility for the upkeep of my unit. So if DJ comes along to rent it; he pays and deals with Ryejay's company. But if I own the unit and I rent it out on my own to DJ - then he pays me; I am responsible.