Friday, September 17, 2010

Renting Condo? Questions and Answers

• Can I evict the tenants that came with the house I purchased, and get my own tenants in there?

The agreed notice to relinquish the tenanted area must be given to your tenants under the Tenant's Protection Act, so the answer is 'no', you can't just evict them. Seek legal advice if your tenants refuse to move out, a tenant does not necessarily have to vacate the property if they do not wish to. There are exceptions to this: If you own the property and your immediate family is going to move into the tenanted space, then once the correct period of notice has expired, the tenant must leave.

• Am I able to lease out my finished basement?
As with leasing out any type of real estate there are items that must be complied with. Before putting up the For Rent sign, it would be in your interest to check that the basement apartment complies with the Ontario Building Code, Ontario Fire Code, local Zoning By-laws, and other applicable regulations. That will give you the real scoop on what reno's could need to be finished (such as putting in another exit) to bring your finished basement into compliance as a secondary unit.

• There is a difference between my occupancy date and my registration date, please explain why is this?
If you are acquiring a newly built condos or Lofts in Toronto, then occupancy fees become your responsibility from the occupancy date, even if you haven't moved in yet. There comes a point when the unit is livable even if you haven't moved in and regardless of whether those finishes you requested are carried out. The registration date is relevant to the date the condo build is completely registered and closed and the condo is yours legally to do with as you please.
• What is a reserve fund?

Repairs have to be made to community areas of a condo building from time to time, the reserve fund which is legally set aside, is for this eventuality. Money is added to it each time you make a payment for your monthly maintenance charge, though if large repairs are needed this money can disappear fast.
• If things breaks in my condo, do I have to mend it or does the condo corporation take care of it?

Your condo is regarded as your effects - one of the benefits of ownership! As a result if something is broken, then it is up to you to fix it. Repairs outside the condo and general maintenance like cleaning of hallways etc. are covered in your monthly maintenance fees.

picture by explorerTom