Posts Tagged ‘rental property purchase’

Buying a tenanted property in Victoria, BC comes with unique opportunities and challenges. Unlike vacant homes, properties with tenants already in place require careful consideration of existing leases, tenant rights, and local regulations. For investors or buyers looking to occupy the property in the future, understanding these factors is critical to avoid legal complications, protect your investment, and make an informed decision in today’s competitive Victoria real estate market. Tenancy Rules Apply to the New Owner When you purchase a tenanted property in Victoria BC, the tenancy does not automatically end. Under British Columbia tenancy rules, the buyer assumes the existing tenancy, including the current rent, terms, and conditions. This means you step into the role of landlord immediately upon completion. Understanding this from the outset is critical, especially if you plan to move into the property or make changes after purchase. Ending a Tenancy Has Specific Requirements A tenancy can only be ended for permitted reasons and with proper notice. In many cases, a new owner may only end a tenancy if they or an immediate family member intend to occupy the property. Specific notice periods and documentation are required, and the rules must be followed carefully. Buyers should understand that possession timelines can be longer than expected when purchasing a tenanted home. Rent May Be Below Market Value Many tenanted properties have rents that are below current market rates, particularly if the tenant has been in place for several years. Rent increases are regulated in British Columbia, so buyers should not assume they can adjust rent to market levels right away. Evaluating the existing rent against current expenses helps buyers determine whether the property aligns with their financial goals. Access and Showings Are Regulated Tenant rights include rules around access to the property. Proper notice must be given for showings, inspections, or repairs, and tenants have the right to quiet enjoyment. This can affect how easily a buyer can view the property before purchase. From a practical standpoint, this can also influence how the property is marketed and presented. Due Diligence Is Especially Important When buying a tenanted property, buyers should review the tenancy agreement, rent history, and any communication related to the tenancy. Understanding who pays utilities, how maintenance is handled, and whether there are any outstanding disputes is essential. This due diligence helps avoid unexpected issues after possession. Planning Ahead Makes a Difference Buying a tenanted property can be a strong long term opportunity, but it requires careful planning. Whether the goal is investment, future personal use, or both, understanding local tenancy regulations and timelines is key. Working with professionals who understand both real estate and tenancy rules helps ensure a smooth and compliant transaction in Victoria’s market.   Marc E., 5-Star Review, via Google “Scott is focused on providing his clients with a long-term positive experience, and he truly acts as a trusted advisor throughout the process. It's important to have someone you can trust for this kind of investment, and Scott has certainly earned my trust. For me, it's important that a realtor fits my values, is always responsive, professional, and goes above and beyond to ensure all my needs are met. I highly recommend Scott and Faber Real Estate for all your real estate needs.” Faber Real Estate Group Royal LePage Coast Capital Realty 📞 250-244-3430 📧[email protected] ℹ️ Scott Faber Personal Real Estate Corporation ℹ️ Cal Faber Personal Real Estate Corporation Vanessa Wood & Zachary Parsons “Building Lasting Relationships, One Home at a Time.”