August 10, 2010

Frequently asked questions by Landlords.

In the Calgary Real Estate market today it seems just about everybody has a rental property on the side. Whether you are a full time investor or just a dabbler it is always best to know tenants rights and practices. The following are answers to some of the most frequent questions that I hear.

1) How often can I increase the rent and by how much?

You can increase the rent every 365 days and there are no caps on the amount of the increase.

2) How much notice do I have to give my Tenants for a rent increase?

If your tenants are periodic (month to month) you must give them 3 months written notice. If your tenants have a lease agreement then rent can be increased at the end of the lease as long as it has been 365 days from the time they moved in or from the last increase.

3) How much notice is required before I turn my apartment building into condominiums?

You need to give a full year notice to end their tenancy and rent cannot be increased during that time.

4) How much notice do I need to give if I need the unit to be vacant in order to do major renovations?

You need to give a full year notice to end their tenancy and rent cannot be increased during that time.

5) How much notice is required if I want the tenants to move out in order to facilitate a sale?

Three months notice must be given for a sale of the unit. This only applies to periodic tenants. Tenants with a fixed contract or lease agreement do not have to move out until the end of the term.

6) Who is responsible for giving a tenant notice if a buyer wants to occupy the unit themselves or does not want that particular tenant in their rental property?

The buyer is responsible. She must request in writing that the Seller issue the three month termination notice to the tenant, as a condition of the sale.

7) What if the buyer does not give the seller a request to terminate the tenancy?

If the tenancy is not terminated then the buyer inherits the tenant when she takes ownership of the property.

8) How much notice do I need to give my tenant for a showing?

The law states that you must give 24 hrs notice for a showing. However, I find the best practice for selling a tenant occupied property is to give the tenant some incentive. One months rent rebate for a successful sale can go a long way as incentive for the tenant to show the unit quickly and cleanly.

The biggest thing you can take away from all this is that if you are considering selling your rental property in the immediate future try to negotiate a month to month lease with your tenants. Conversely if you are already on a fixed term lease then list your home about 3 months prior to the end of the lease and clearly indicate on the listing when the lease expires. If you would like more information please visit Service Alberta.

Good Luck!

No comments:

Post a Comment