Bylaws and restrictions

I was wondering if Marko could give us his thoughts on bylaws and restrictions in condos, and their impact on resale value and time on market. 

 

Obviously bylaws can be a rather divisive issue for many, with some seeking the restrictions hoping they bring about peace and quite, but others want more freedom and flexibility in their homes. 

 

 

The biggest by far is rental restrictions. This is more common in older buildings. Some say 20% (or whatever %) is the maximum number of units in a condo that can be rented out.

Smoking restrictions are controversial but some say it is a negative for resale, others say it is a positive. The people fighting against it at AGMs are scared about resale value. I really can't say it makes a difference on way or another. I think smoke free is great.

There are other minor things, like can you rent your parking space. There are noise (peace & quiet) bylaws but these are pretty standard. Barbecue and live Christmas tree bylaws may impact some lifestyles but aren't the end of the world.

Noise...opening and closing sliding doors, running water, loud music, barking dogs. Noise would be my main concern.

^Well, it all comes down to what's reasonable. Every strata has a bylaw against disturbing noise like blaring stereos after a certain hour. It's impossible to draft a bylaw restricting when you can or can't turn your water on for fear of making a noise at night. It's a condo, not Anne Frank's attic.

Edited by Rob Randall, 13 August 2015 - 06:31 AM.

Generally age restrictions have the largest negative effect on resale value, followed by rental restrictions.

^ my thought too. However, I heard via word of mouth that age restrictions are actually not legal. Can anyone shine some light on that?

I came across this: http://www.rew.ca/ne...value-1.2009136 which made some interesting points.

 

Of course, some people prefer buildings with no pets (for example, those with allergies or a fear of animals). Overall, though, properties sell for significantly more in stratas that allow pets compared with properties in stratas that do not. For example, in the past 60 days, one-bedroom condos in Vancouver’s West End that allow pets sold for 28 per cent more than those that don’t.

 

I wonder if there's a similar trend here?

Sorry, I forgot age restrictions. That's huge. And yes, they are difficult to enforce. Their legality seems to be in a grey area, no pun intended. And pet restrictions, that affects resale. But I am not a realtor and this is Ask A Realtor, not ask a goddam smartass.

It's a condo, not Anne Frank's attic.

 

I definitely plan on stealing and repeatedly using this phrase, but I need to clarify first if this is an actual invocation of Godwin's law (or qualifies as Reductio ad Hitlerum) of if this skates by without penalty.

I came across this: http://www.rew.ca/ne...value-1.2009136 which made some interesting points.

 

 

 

I wonder if there's a similar trend here?

 

That is not a trend; that is just a number that has zero meaning that way it is presented.

 

Yes, the number would look the same in Victoria but it has way more to do with the age of the building (probably 20% of "sold for more 28") than the actual pet restriction (probably 8% of "sold for 28% more").

 

Buildings built in the last 15 years typically don't have any pet restrictions; buildings building in the 1970s/1980s often have pet restrictions that is why you get the "28%" difference.

 

Extremely misleading number.  If you have two identical buildings there is no way condos in one pet restricted building are selling for $200,000 and the one next door with no pet restriction for $256,000.  For that kind of difference you would need a no rental restriction, 55+ age restriction, and no BBQs in the $200,000 condo.

I was wondering if Marko could give us his thoughts on bylaws and restrictions in condos, and their impact on resale value and time on market. 

 

Obviously bylaws can be a rather divisive issue for many, with some seeking the restrictions hoping they bring about peace and quite, but others want more freedom and flexibility in their homes. 

 

I can tell you that younger buyers, even if they plan to occupy the unit, prefer a no rental restriction to allow flexibility in terms of moving for a job, upgrading to a home without having to sell the condo, etc., etc.

 

No rentals takes out a big chunk of your market.

 

A lot of people have pets; therefore, restrict pets and there is another junk of the market gone.

 

Age restrictions are fairly obvious as is no BBQs.

 

My best random guess is if you have those three restrictions in place you probably take out 70% or more of your potential market which probably affects the market value of the unit anywhere from 5 to 20%.

 

There are exceptions to this such as super high-end buildings that have no rentals where people pay top dollar to be part of an exclusive club.  Not too many in Victoria.

In my building it's simply impractical to have a BBQ due to the balcony enclosures. 

 

Additional restrictions obviously further impact resale and saleability.  Do you have a rough idea of what % of condo buyers are specifically looking for pet-friendly buildings? 

 

I know it's difficult, (maybe impossible if stats aren't collected) but I'm trying to quantify the impact these restrictions have. 

In my building it's simply impractical to have a BBQ due to the balcony enclosures. 

 

Additional restrictions obviously further impact resale and saleability.  Do you have a rough idea of what % of condo buyers are specifically looking for pet-friendly buildings? 

 

I know it's difficult, (maybe impossible if stats aren't collected) but I'm trying to quantify the impact these restrictions have. 

 

Wild guess based on my own clients over the years....25 to 30% at the very minimum want cat friendly.  I would say 10% want dog friendly?  

 

Even thought some builds are even more.  I swear everyone and their mom has a dog a the Bayview

Edited by MarkoJ, 13 August 2015 - 10:39 PM.

How often do you run into someone who specifically wants no pets in the building? 

 

The Bayview must sound and smell like a dog shelter

How often do you run into someone who specifically wants no pets in the building? 

 

The Bayview must sound and smell like a dog shelter

 

I have never in my career had someone come to me specifically looking for a no pet building.

I have never in my career had someone come to me specifically looking for a no pet building.

 

I know where they all are

http://www1.agric.go...sf/all/sis14914

 

 

Fifty-seven percent of Canadian Households own pets which equates to 7.5 million households.  Cats are more popular pets than dogs.  Thirty-seven percent of Canadian households owned one or more cats, 32% owned dogs.  Overall Canada is home to roughly 5.9 million dogs and 7.9 million cats.  Nine percent of Canadians owned other types of pets, including fish, birds, small mammals and herptiles.

 

Having pet restrictions seems like a pretty dumb idea from a numbers perspective.

 

For the record, my dog smells really good.

I'd rather have every unit in my building occupied with cats and/or dogs than even one unit with pre-school-aged children. Now THERE's where I'd like to see restrictions.

I'd rather have every unit in my building occupied with cats and/or dogs than even one unit with pre-school-aged children. Now THERE's where I'd like to see restrictions.

 

Aren't there buildings that are theoretically 18+?   Not sure if it is enforceable but I have seen that.