Unintended consequences of tenancy changes

It used to be that if a landlord wanted to sell a revenue property, the landlord was required to give tenants two full months' notice before the new owner could move in. 

This summer, the BC government extended this notice period to four full months. While this change benefited tenants by providing them with additional time to secure a new home, it posed significant challenges for sellers and buyers. 

After pushback from industry stakeholders, the government has shortened the notice period to three months. As most would-be buyers need to move in 30 to 60 days, they’re ignoring properties with tenants, instead focusing on vacant or owner-occupied listings.

We’re in a scenario where current investors can’t sell their rental properties because of the extended notice period, and can’t raise rents to offset increased carrying costs due to higher interest rates. If landlords are unable to cover monthly expenses and can’t find buyers, the Sunshine Coast may see a wave of foreclosures on rental properties.

If investors see regulations as too burdensome and shy away from owning rental properties altogether, it further exacerbates the Sunshine Coast’s rental shortage. With fewer properties available for lease, tenants could see monthly rents increase due to a lack of supply, making it more difficult to find affordable housing.

One of my specialties is buying, maintaining, and selling revenue property on the Sunshine Coast. Please reach out if you need help refining your exit strategy.