Real estate law: Landlords renting rooms in mansions to students

Real estate law: Landlords renting rooms in mansions to students

On Behalf of Porter Ramsay LLP | Apr, 24, 2019 | Real Estate Law

Vancouver mansions are being rented out to students for what amounts to a paltry pittance. There is nothing in real estate law that says anyone has to charge a certain rate for rentals, and rooms in some of British Columbia’s most luxurious homes are being rented to students. But when the upwards of $1,100 for each room is added up, landlords aren’t doing too badly. Students, however, aren’t complaining.

Landlords are renting these rooms in vacant homes to avoid paying the new tax which is slapped on an owner for a home that sits vacant. Chinese investors are pulling out of the market and these homes are getting low-ball offers, so owners have turned to students to fill a void. According to the Real Estate Board of Greater Vancouver, prices in the city are down more than 8% from a record high last June. 

Owners of high end real estate are moving out of their homes with the empty house tax at 3% annually. They’re opting to lease their homes instead of living in them, much to the delight of university students who view these luxury digs as bargains. Some of these multi-million dollar homes are renting for a little as $4,500 a month. Students are living in rentals with chandeliers, pools, steam rooms and games rooms. 

There are deals to be had in the British Columbia real estate market these days. But those wishing to pursue their dream of homeownership or to purchase an investment property may wish to seek the advice of a lawyer experienced in real estate law. Not only will a lawyer understand what is going on currently in the market, but he or she will be able to guide a client in making a wise purchase and assist with issues like title searches and closing. 

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