Do you know the difference
between a strata development and condominium development?
There is no difference.
While condominium is the term
generally used for strata properties in other provinces — in B.C. the two
terms are interchangeable, although condominium is often wrongly used to refer
to an apartment, as distinct from a townhouse.
In fact, townhouses are usually
condominiums, as are duplexes and even some detached houses.
There are also commercial, industrial
and mixed-use strata developments. In my neighbourhood, horses live in
strata-titled stables.
In a condominium, owners own their
individual strata lots and together own the common property and assets as a
strata corporation. Private balconies and patios are designated ‘limited common
property’ for exclusive use.
British Columbia enacted the first
Strata-Title Act in 1966. However, it wasn’t until the early 1970s that
condominiums became popular. To date, approximately 29,000 Strata Corporations
comprising 500,000 units have been created, housing 1.5 million of B.C.’s five
million residents.
Although the first condominiums were
developed primarily for those seeking an affordable alternative to a
single-family house, today condominiums appeal to a much broader range of
households, especially those selling for tens of millions of dollars.
While many single-family homeowners
have reservations about strata living, it can be the ideal arrangement. Owners
generally enjoy a more carefree lifestyle, with less worry about individual
maintenance and repairs. There can also be a greater sense of community,
especially in smaller projects.
While some regard strata fees as
an additional cost, they cover items a single-family homeowner would normally
pay including home insurance, municipal fees, repairs and maintenance. There is
also a prudent contingency reserve.
In British Columbia, condominium
residents must abide by the Strata Property Act and bylaws. While the province
has developed standard bylaws, I recently discovered they may not adequately
address emerging issues, such as smoking and short-term rentals.
Most British Columbians do not smoke
tobacco and do not want to be exposed to second-hand smoke. Strata owners and
residents can ensure smoke-free environments by passing strata bylaws or rules
to restrict or ban smoking.
An issue is whether these restrictions
should apply to just common areas, or within individual homes as well.
Furthermore, do they also apply to vaping and marijuana smoked for pleasure or
medical purposes.
The provincial government has prepared
some helpful information on
bylaws to addressing smoking.
It advises that if a strata council
wants to try and ban smoking in individual units, it should seek expert legal
advice.
Strata bylaws can limit the number or
percentage of residential strata lots that may be rented or limit the length of
time they may be rented. This often applies to Airbnb. Again, the province has again prepared useful information on
this as well.
Given our affordable rental housing
crisis, the B.C. government and some municipalities are now discouraging
stratas from placing restrictions on long-term rentals. I do not agree with
this.
Condominiums should be treated as a
type of ownership housing, not a means to increase rental supply. Investors who
purchase units with the sole intention of renting often have different
priorities than owner-occupiers.
Governments should allow strata
corporations to decide on long term rentals.
Short term rentals, such as Airbnb are
another concern. Increasingly, many condominiums are banning them since they
often negatively impact the quality of life for other residents.
A year ago, the provincial government
passed legislation increasing the fine a strata corporation can impose from
$200 a week to $1,000 a day for owners not complying with a strata bylaw
limiting or banning short-term rentals.
As Vancouver’s planners encourage more
duplexes, smaller infill developments, and other forms of multi-family housing,
condominium living will become even more prevalent. While it may not be for
everyone, most condominium residents will tell you the pros generally outweigh
the cons.
Especially when they don’t have to deal
with leaky roofs, bats in the attic, or racoons under the deck.
