Wednesday, September 7, 2016

Telecom access in a condo building

Clear decision from the courts on the limitation of cable and internet services provided inside condo buildings

You cannot exclude a service provider.


In a recent decision, the Canadian Radio-Television and Telecommunications Commission (“CTRC”) threatened to cut off all telecommunications services to a condominium building if the condominium corporation did not provide timely access on reasonable terms and conditions to a fourth telecommunications service provider (“TSP”).
There were already three TSP’s providing services to TSCC No. 2322 (the “Corporation”). Discussions between the Corporation and Beanfield Technologies Inc. (“Beanfield”) failed to result in any access rights being granted to Beanfield. The Corporation’s position was that:
§ The building’s infrastructure could not accommodate Beanfield’s network, as there wasn’t sufficient capacity in the existing conduits for Beanfield’s fibres;
§ Allowing Beanfield to install additional conduits (which Beanfield offered to do at its own expense) would cause unnecessary disruption to residents;
§ If access was given to Beanfield to construct additional conduits, the construction would have to be done by contractors approved by the Corporation;
§ As there were already three TSP’s in the building there was sufficient competitive choice for residents to select a TSP.
Beanfield brought an application to the CRTC requesting that the CRTC require the Corporation to provide access to Beanfield. Beanfield also requested that access be granted on commercially reasonable terms as set out in either its standard access agreement or in the access agreements which the Corporation had previously entered into with Bell or Rogers.
The CRTC determined that at a minimum Beanfield should be entitled to access from the street to the building’s main terminal room, access to the units upon request for its services, plus access required for the purpose of installing, operating, maintaining and replacing Beanfield’s facilities. However, the CRTC felt that it was not appropriate for the terms of either the Bell or Rogers contract to apply as Beanfield was not entitled to benefit from negotiations in which it did not participate.  The CRTC also did not support the Corporation’s position that Beanfield’s installations could only be carried out by contractors approved by the Corporation, on the basis that this was a term that the parties should negotiate between themselves.
Ultimately the CRTC did not order the Corporation to provide access to Beanfield. Instead, the CRTC left it to the parties to finalize negotiations for access, with strong negative ramifications for the Corporation and in particular, the residents, if Beanfield was not granted the access rights as described above:
§ If access is not granted to Beanfield within 60 days, then the existing TSP’s would not be permitted to provide services to any new resident of the condominium or to any current resident who was not an existing customer of the applicable TSP.
§ If access is not granted to Beanfield within 90 days, then the existing TSP’s would not be able to upgrade or modify the services currently being provided to existing customers.
§ If access is not granted within 120 days, then the CRTC would consider either issuing an order requiring that access be granted to Beanfield or alternatively, issue a decision that the existing TSP’s would no longer be permitted to provide any services to the condominium residents.
The CRTC decision was aimed at facilitating competition and maximizing consumer choice, so that residents would be able to select the TSP of their choice regardless of the type of dwelling in which they resided.
This decision by the CRTC puts all condominium corporations on notice that they cannot deny timely access on reasonable terms and conditions to any new TSP.

Technology changes everything.

Time to sell?
Call me


David Pylyp
647 218 2414

Friday, May 27, 2016

Beware of Renting your Condo as AirBnb

Your mortgage does not say You are permitted to rent as a commercial landlord; then you would be a commercial investor like Trump Tower  [how many people couldn't get financed]

Your mortgage requires you to stay within the provisions of your Condo By Laws.   If you contravene your by laws your mortgage is considered in default.

In the condominium sector, where, according to Gerald Miller, a managing partner at Gardiner Miller Arnold LLP, 80 to 90 per cent of Canada’s Airbnb market is concentrated, there are definite risks for lenders – and homeowners.
“If you contravene the declaration of bylaws and rules of the condominium corporation,” he points out, “that means you’re offside here. It means you’re in default of your mortgage, because the corporation can take action against you and whatever costs are incurred; they can lien your unit.”Mr. Miller says Airbnb renters flew under the radar for the first few years of the service’s operation, “but now it’s become mainstream. It is everywhere. So in the end when you are exposed you could have a problem. You either stop doing it or you are going to have a problem, not only with the condominium corporation, but with your lender as well.”  http://www.theglobeandmail.com/featured-reports/beware-the-risks-of-renting-your-house-through-airbnb/article30150563/

What's the lesson?

Get Factual advice.   Follow the By Laws and Have the correct Financing in place.

Can we talk?   Call me. 

Professional Tenant Defrauding Landlords

Professional Tenant Defrauding Landlords
May 17, 2016 -- It has been brought to TREB's attention that the firms Handsmith Advocate and Paralegal and also Provincial Paralegal are currently in litigation with a sophisticated Professional Tenant involving multiple rental units.  There is reason to believe, based on a pattern of activity, that there may be more rental units involved and currently in this Tenant's possession. 
As this individual's MO is consistent based on four (4) known cases so far, it is the firms' belief that releasing the individual's profile may lead to the discovery of other units and will also perhaps interfere with future attempts by this individual to defraud Landlords.  The number of new cases is increasing daily, as it is clear this individual is attempting to grow by increasing the number of units in their possession.
The profile of the Professional Tenant is as follows:
They are primarily using RECO registrants to locate target properties in the downtown core of the City of Toronto.  The individual is targeting furnished units as well as unfurnished units in condos in the $2000–$3000 price range.  The individual presents as mild-mannered with a gentle demeanor.  The individual claims to be a senior director of an alleged charitable organization.  They use a letter of employment from the alleged charitable organization claiming a sufficient annual income to be able to afford the unit.  The Tenant uses a variety of phone numbers on the letter of reference, and if you try to contact the number to confirm the details, you are told the person is not available, but asked how the person who answered may help you. Then they proceed to confirm the details of the alleged employment and confirm that you are in fact speaking to the Tenant.  The alleged charitable organization has a polished looking website; however, what is notably missing is the Revenue Canada registration number for charitable organizations.  A search of the Revenue Canada database yields no record of any such organization.  The phone number to the alleged reference is in fact one of the numbers used by the Tenant. 
The tenant will pay one month's rent with the promise to pay the last month's rent deposit at a later date, which never comes.  They will generally stop paying rent as of the second month.  In some cases, both the first and last month rent cheque will bounce after they have gotten possession.  The Landlord will receive calls from the Condo's Property Management office with complaints that the Tenant appears to be engaged in running an Airbnb from the unit, with reports of numerous unidentified individuals accessing the unit on an ongoing basis, and this will begin immediately after the Tenant takes possession.  Often Condo Corporations have rules regarding short-term rentals and Condo owners find themselves in trouble for the conduct of the Tenant.
The Tenant has sufficient knowledge of the Landlord & Tenant Board process to know how to cause significant delays in their proceedings.  They have also become very covert in concealing their advertisements, as the first case was successful at obtaining the evidence of their activities.  Generally speaking, they will post their advertisements for short periods of time on one of (17) different sites used to promote Airbnb units, until they get a hit. Then, they will pull the advertisement down immediately so as to make it difficult to gather the necessary evidence of their conduct.  The Tenant will continue to not pay rent while rerenting the unit out on a per diem basis at a rate usually in the range of $125–$175 per night.  Currently, the rent arrears collectively between the (4) known cases are in the in excess of $25,000.00. 
This serves as a reminder to always be vigilant about these kinds of situations and to conduct detailed reference checks on all potential tenants to protect your clients.


I would take notice

PLEASE BE CAREFUL 

David Pylyp



Monday, May 16, 2016

Guidelines for measuring Square footage

The CBC investigation found realtors had varying approaches to measuring home size and the guidelines were open to interpretation.
Some measurements, for example, included patios and balconies while others even counted decks and condo parking spaces.

http://www.cbc.ca/news/canada/calgary/real-estate-council-alberta-residential-measurment-standard-1.3580841
The new measurement standard instructs realtors to:
  • Identify if the measurement system is metric or imperial, and apply it consistently.
  • For single detached properties, measure the outside surface of the exterior walls at floor level.
  • For properties with common walls, such as half-duplexes, townhouses, and apartments, measure the interior perimeter walls (paint-to-paint) at floor level. An additional area representation may be made assuming exterior measurements.
  • Include floor levels that are entirely above grade and exclude floor levels if any portion is below grade. Below grade levels may be measured, but the area must not be included in the RMS (residential measurement standard) area.
  • Include all additions to the main structure and conversions of above grade areas within the structure if they are weatherproof and suitable for year-round use.
  • The property must have a minimum floor-to-ceiling height of 2.13 metres (7 feet). If the ceiling is sloped, the area with a floor-to-ceiling height of at least 1.52 metres (5 feet) is included in the RMS area, provided there is a ceiling height of 2.13 metres (7 feet) somewhere in the room.
  • Include extensions from the main structure that have a minimum floor-to-ceiling height of 1.5 metres (5 feet), such as cantilevers, bay and bow windows, and dormers.
  • Exclude open areas that have no floor, such as vaulted areas.
Glad the Matterport™ can create instant floor plans



 

Monday, April 25, 2016

Glass in Condos ~ The Glass is the wall

Especially, all that glass that's being used to build Floor to Ceiling glass views but it has Low insulating value, it is totally transparent to Sun and provides No insulating value to Glass.

Province of Ontario has implemented a maximum rule of 40% exterior glass effective 2014 Structural Design of Glass for Buildings 4.3.6.1.(1) 9.6.1.3.(1) that will limit the heat loss, tempering and layering, (how it shatters and falls) Heat Absorbing and Heat reflecting. 
http://www.adtekbuilding.com/images/Ontario_Building_Code_2012.pdf



View Video for yourself



Condominium Buildings are required to produce Performance Audits on a 5 year cycle that help establish long term commitments for replacement and repair [Decide on the Remaining Economic Life of Components] These costs of replacement are factored into your reserve funds already. 

New Buildings will have less glass as an exterior feature and FEEL like the older condos where you placed your elbows on the window ledge and looked out.

Sure is pretty to look out the windows

Want a view?
Call, TXT or email

David Pylyp

Toronto Condo investors profit from low availabilty



Condominiums that are purchased / constructed after 1998 are exempt from Landlord Tenant Board rental guidelines.  The provisions of the RTA that deal with the maximum amount by which rents can be increased do not apply with respect to a rental unit if:
         It was not occupied for any purpose before June 17, 1998

– meaning it is either in a new building (often a condominium building) built since 1998, or an older building with a new unit or never occupied, residentially or otherwise, before June 17, 1998




The average one-bedroom apartment rent was $1,662 in the first quarter – up 4.8 per cent compared to the same period in 2015. The average two-bedroom rent climbed by 8.9 per cent to $2,375 on a year-over-year basis. 
http://www.trebhome.com/market_news/release_market_updates/news2016/nr_rental_report_Q1-2016.pdf


 Given the number of units that are being built; while everyone is concerned about a  bubble, the rents increasing because they are being absorbed by the market.

Would you like to invest?

Call or Text

David Pylyp


Sunday, April 17, 2016

Soaring Rents! Screen your Tenants

Average rental for a two bedroom in Toronto is $2,375.00
The [LANDLORD] couple has had to pay a $10, 000 deductible to fix other units [standard unit By law] in the building that was damaged, and it's not known if insurance will cover the rest. - See more at: http://www.newstalk1010.com/news/2015/05/01/guilty-plea-in-liberty-village-druglab-explosion


http://www.cp24.com/news/toronto-condo-rents-soared-6-8-per-cent-in-first-quarter-of-the-year-report-1.2858614

If this DEEMED a crime...   Then Insurance does not cover the costs.

The repairs would have been to the Building's Residents and their own Insurance.[quite possibly a special assessment]

Remedy?    Frequent visits to your tenant?
Invasion of their privacy?   Yes


David Pylyp
#askPylyp

TXT or email