Vancouver Real Estate

Thanks to Graham Connor (www.grahamconnor.com)

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More Timely Predictions from the BC Real Estate Association

By Cameron Muir, Chief Economist and Brendon Ogmundson, Economist, British Columbia Real Estate Association

The Canadian economy grew at the exceptional pace of 6.1% in the first quarter of 2010, propelled by a booming housing market, strong consumer spending and the rebuilding of private sector inventories. Moreover, growth in the second quarter of 2010, while not expected to register the sizzling pace of the previous six months, should be a robust 3%-4%.

However there are signs that the economy, if not stalling out, may be slowing down. April’s monthly GDP print was disappointingly flat as consumers moved to the sidelines, sending retail sales lower by almost 2%.

Even if Canadian consumers are beginning to tire out, economic growth should be supported in coming months by projects initiated under the federal government’s infrastructure stimulus plan. This stimulus will provide a needed boost to the economy through the remainder of 2010, with projected impacts peaking in the third quarter, but will create a drag on growth in 2011 as the stimulus is withdrawn from government expenditure.

The strength of the Canadian economic recovery over the past six months is evidenced by the over 300,000 jobs created in the Canadian economy since the beginning of the year. While this exceptional rate of job creation stands in stark contrast to the gloomy employment situation of our southern neighbour, it also re-affirms the need for the Bank of Canada to begin withdrawing its emergency level of monetary stimulus by raising interest rates, particularly given the proximity of core inflation to its 2% target rate.

The withdrawal of monetary and fiscal stimulus from the Canadian economy in coming months will result in slower growth in both the second half of 2010 and into 2011. This growth slowdown may be further exacerbated by weaker than currently anticipated US and global economic growth as well as a higher Canadian dollar resulting from a rise in Canadian interest rates relative to the United States.

In all, slower economic growth and inflation that is within the Bank of Canada’s comfort zone should mean that, while interest rates are certain to rise, the pace of interest rate increases should be orderly and the level of interest rates will remain near historic lows through the remainder of the year.

See more at BCREA Realtor Link here.

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This just in from the BC Real Estate Association:

The British Columbia Real Estate Association (BCREA) released its Housing Forecast Update for the third quarter of 2010 today.

BC Multiple Listing Service® (MLS®) residential sales are forecast to decline 7 per cent from 85,028 units in 2009 to 79,500 units this year, before increasing 5 per cent to 83,400 units in 2011.

“The volatility in consumer demand characteristic of the past 24 months is expected to give way to more gradual improvement through 2011,” said Cameron Muir, BCREA Chief Economist. “Housing demand has fallen back to earth from its break-neck pace at the end of 2009 and is expected to more closely match overall economic performance over the next 18 months.”

“A larger inventory of homes for sale has created the most favourable conditions for home buyers in more than a year,” added Muir. “However, the buyers’ market is expected to be short-lived as total active listings peaked in May and are beginning to wane, with more balanced conditions set to emerge in the fall.”

The average MLS® residential price is forecast to climb 6 per cent to $492,800 this year and remain relatively unchanged in 2011, albeit declining by 1 per cent to $489,500.

For a PDF version of this news release, including data table, follow this link:
www.bcrea.bc.ca/news_room/2010-07-30Forecast.pdf.

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We now have a mobile version of our site including all listings!

Wherever you are, you can view available apartments and condos for rent through Downtown Suites.

Check it out, and we’d love to have some feedback. So far we’ve only tested on the iPhone here in Vancouver, so if you could try it on your mobile device wherever you might be in the world, that would be really helpful to us!

Just go to our normal site: http://www.downtownsuites.com and you’ll be automatically redirected to the mobile site at m.downtownsuites.com.

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At Downtown Suites we contact emergency restoration as soon as any such incident happens. We understand that with leaks there can be so much humidity with conventional carpets it is necessary to move all furniture out asap, before the moisture gets to the wood and warps it. Even in a concrete building the dampness can cause mould from the absorption of moisture. However, an immediate call to a restoration company can avoid much of the water damage.

Insurance is essential, for tenants and landlords, as well as strata corporations. Recently, insurance has become complicated, as some companies have a cap on the deductable per suite, rather than per occurrence. In the per occurrence scenario, imagine 15 claims at $5000 deductable per claim. This is where the owner’s insurance comes in, paying the deductable if it is a building claim.

Usually, the tenant’s alternate place to stay isn’t covered by that insurance, which is one reason why the tenant would need to have his own. In normal circumstances, the deductable would be the owner’s responsibility, rather than the tenant’s.

Of course, liability is a big issue, and as property managers we help both owners and tenants understand which areas are their responsibilities in such circumstances.

(This is an important Evergreen Resource article, revisited from our archives.)

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At Downtown Suites we manage all End of Tenancy Notice in an atmosphere of trust, tact and timeliness. Today, I’d like to share more with you on the fine points of the BC Residential Tenancy Act.

When a rental unit requires extensive renovations or repairs, so extensive that the place would have to be vacant, the landlord may give notice to the tenant. In this situation, the requirement is not one but two months’ notice. These renovations would also need all the legally relevant permits and approvals before notice could be given. As well, the Residential Tenancy Act says that the landlord needs to intend these repairs “in good faith”, to ensure that this is an actual renovation/repair and not simply a ruse to remove the tenant. In addition, the landlord needs to be aware that the tenant could give ten days’ notice after receiving this two month notice, with a potential loss of revenue to the landlord.

There are many reasons why an owner might need to give a resident tenant notice to vacate, and landlords should be familiar with the Residential Tenancy Act to understand which of these require two months’ notice.

Such as: the conversion of the residential property to strata lots, or conversion into a not-for-profit housing coop. Of course, in both of these situations all legal permits must be in place.

Or: if a rental unit needs to be made available for a residential building’s caretaker or manager, two months’ notice can be given to the tenant of that suite, to make room for the caretaker.

Other permitted reasons for notice include the demolition of the rental unit, and the conversion of the rental unit to another non-residential use. In earlier posts, I’ve gone over the situations related to notice for the purposes of sale.

The 10 days’ notice scenario:
A tenant receives two months’ notice. He turns around and gives the landlord 10 days’ written notice for an earlier move-out date. Along with this notice, he pays rent to the landlord, covering the time of notice to the move-out date. However, the landlord has the tenant’s previously paid rent (for a period after that effective date) such as a post-dated cheque for the full month and future months. She must return these funds to the tenant. (Please note that this scenario doesn’t apply to a fixed term tenancy.)

Confusing? As experienced residential property managers, we can help you with the ins and outs of these and other tenant situations. Contact us at Downtown Suites.

(This is an important Evergreen Resource article, revisited from our archives.)

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At Downtown Suites, we always act with compassion and empathy to the tenants when delivering an end of tenancy notice on behalf of an owner. At the same time, we want to ensure everything happens without any loss to the property owners if at all possible. An important factor is making sure we have timely delivery of any End of Tenancy Notice, according to the BC Residential Tenancy Act’s stipulations.

Notice is not always considered “received” on the date is it sent, depending on the way this notice is delivered.

Received on the day of delivery: When a copy of the notice is left directly with the tenant, or left with an adult who apparently lives with the tenant, the notice is deemed to be received on the day it is left.

Received in three days: It is important to know that when a copy is left in a mailbox (or mail slot) where the tenant lives, the notice is not deemed to be received until three days after the day it was left. If the notice is faxed to a number provided by the tenant, it is deemed to be received on the third day after faxing. Similarly, if notice is posted on the door or other noticeable place at the address where the tenant lives, it is deemed as received on the third day after this posting.

Received in five days: When a copy has been sent by regular mail or registered mail to the address where the tenant lives, notice is deemed to be received on the fifth day after mailing.

Many owners following these regulations are surprised to discover that, through no fault of the tenant, the notice was not actually received. Unless the notice is directly handed to the tenant, it is wise to have confirmation of receipt. At Downtown Suites, as soon as we hear from an owner that notice must be given, we send it out by registered mail.

(This is an important Evergreen Resource article, revisited from our archives.)

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Be Aware, Cautious and Prepared

You have just purchased a home in Vancouver and intend to live in it once the deal is completed. In the eyes of the BC Residential Tenancy Act, you become an “owner-occupier” and if this home is currently occupied by a renter you are entitled to end the tenancy. There are some things you should know about the procedure.

When an owner-occupier purchases, she must send a letter to the current landlord, on or before the effective date of the notice. The landlord (or the new owner-occupier) is required to pay the current tenant one month’s rent, plus give 60 days notice, served by the end of month.

In this situation, upon receiving this notice, the tenant, on the other hand, only has to give 10 days notice before ending the tenancy.

Often it becomes a negotiation point at the time of sale, deciding who should pay that one month’s rent – the new owner-occupier, or the seller.

There can be a downside to all this for landlords. If you are counting on the rent, and, say, the deal closes August 1, you will need to request in writing to the current owner to serve notice. However, if the tenant immediately after receiving this notice, gives 10 days notice and leaves after the 10th day of the month, the result to you would be a loss of revenue, in addition to the one month rent penalty.

In the light of this potential loss of revenue, landlords need to be aware, cautious, and prepared.

At Downtown Suites, we assist owners in understanding and preparing for all situations related to their property and the BC Residential Tenancy Act.

(This is an important Evergreen Resource article, revisited from our archives.)

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Many owners of investment property may be unaware of the ins and outs of the new BC Residential Tenancy Act, which has been recently updated. If your suite is currently rented to a tenant, this information should help you understand the tenant rights written into the current legislation.

The new rules for residential tenancy apply to the many suites here in Vancouver that are held as investments and currently occupied by tenants. When owners wish to sell the suite, they find that tenants are not simply expendable, to be evicted upon sale of the suite.

Here in BC, tenants have many rights, upheld by law. It may come as a surprise to owners to discover that when tenants are in a lease situation, that lease takes precendence over the sale. Unlike other countries, an owner here cannot evict a tenant for the purposes of selling. In fact, it is only if the new owner wishes to live in the suite that a tenant may be evicted. This new owner is referred to as an “owner-occupier”.

This is important legislation. At Downtown Suites, we help the owners understand the ramifications of this legislation when they decide to sell their investment property.

(This is an important Evergreen Resource article, revisited from our archives.)

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