Owning rental property in Victoria has historically been a good
investment. Although the actual income from the property may not give a
huge (if any the first few years) profit, the fact that Victoria Real
Estate doubles in value approximately every ten years is a major
consideration for many investors. Recently, many investors have turned
to condominiums rather than single family homes or duplexes because of
the affordability and lower maintenance.
Before purchasing a condo for investment it is important to understand
how The Strata Property Act and the By-laws of the Strata Corporation
affect your right to rent or lease a property.
-
Under the standard by-laws provided by the new Strata Property Act,
rental or leasing of a Strata property is allowed unless the Strata
Corporation changes the By-laws to restrict rentals or leasing in that
particular Strata Corporation.
-
A
Strata can pass such a by-law at anytime and with one exception the
by-law will apply to all strata units (see section 143 Strata
Properties act for time frame to end tenancies).
-
The
exception relates to first owners and the Rental Disclosure Statement
filed at the time the Strata is registered by the Developer. In most
cases the First Purchaser (the buyer from the Developer) has a
guaranteed right to rent, regardless of by-law changes passed by the
Strata Corporation. The Property Disclosure is not a standard form and
as a result each Strata must be dealt with on an individual basis.
-
Being the first owner of a strata unit is the best way to guaranteed
the right to rent your strata property but if rental is your objective
you should have your lawyer check the Rental Disclosure Statement, the
Strata By-laws and any other documents they may think relevant before
you purchase.
