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A group of Vancouver-based companies are looking to change the way they do business, said a representative this week in response to questions about their practice of buying old apartments and paying long-term tenants to vacate them. expel.
This week, as Vancouver City Council reflected on measures to protect tenants from "renovations" and "aggressive redemptions," dozens of tenants went to the council chamber to share sometimes painful stories. , and a group of owners has been bred on a number of occasions.
Lawyers say that these cases are a perfect illustration of the need to strengthen laws and enforce laws in a city where the vacancy rate is close to zero and rents are rising.
And with Vancouver City Council and BC Government officials for these companies, including Coltric Properties and VS Rentals, said on Wednesday that they find the job harder and "changed our entire model. ".
Tuesday night at City Council, Valerie Farina told the story of her 23-unit building in Kitsilano, Manoa Yew, which a Coltric-related company bought in September and immediately started offering tenants money for to urge to leave. Green Coun. Pete Fry asked Farina questions, seemingly surprised to find that of all the complaints he had recently received about Coltric and VS, Farina's building was not even on his radar.
"I add it to my list of reports on VS-slash-Coltric," said Fry. "It's not even on my list."
Since September, The new owners of Farina have offered tenants three increasing purchase offers, including the last Monday night. "It's a pleasure for us to inform all tenants. To facilitate their transition, we made a new offer, "says the written offer, before specifying its offer: a" buyback bonus "of $ 5,000, three months rent, $ 500 moving expenses, the deposit warranty returned. and a letter of reference.
Farina told the building manager that she was ready to relocate temporarily to allow renovation work to be done. She might come back after that, but she felt compelled to take the money and stay away to allow a new tenant to move in. .
"Their goal is to push people to a buyout," Farina said. "There was just this real push and constant argument to get us to leave."
But when Postmedia News contacted VS Rentals on Wednesday, Vice President Christopher R. Evans announced his intention to let Farina and other tenants know that they could stay during the renovations or come back later.
When Postmedia forwarded this message to Farina later that day, she said: "Sensational, it's completely different from what we've been told … Until now, we had nothing but: "Sooner or later, you will leave".
While homeowners often say that renovations are needed to retain much of the area's aging rental housing, tenants' lawyers argue that evictions are often a way for homeowners to evacuate long-term residents and homeowners. increase rents to increase profits. A senior Vancouver official said in a recent note that this type of overall removal notice often follows the fact that new homeowners buy a building.
"The significant increase in market rents in recent years has created an environment in which unit turnover can mean a significant return for homeowners, and low vacancy rates in rental housing facilitate looking for new tenants willing to pay higher new rents, "says a recent letter. Dan Garrison, Deputy Director of Housing Policy and Regulation in Vancouver, to the BC Government Housing Working Group.
"We hear about these cases most often when a rental property is sold to a new owner. While long-term property owners generally prefer the maintenance of stable leases, new homeowners may consider the unit-to-unit revenue as a way to generate revenue on a new lease. investment. "
When the sale of 90-year-old Manoa Yew was listed for sale earlier this year, a sales brochure indicated that the building had generated $ 170,000 to $ 175,000 in net operating income per year after subtracting repair, maintenance, elevator, and other "miscellaneous" operating costs.
The sales brochure also stated: "The roof and plumbing have already been replaced, reducing the capital required."
Evans stated that the operating costs listed in the sales brochure did not include the mortgage financing costs, which are substantial. But Evans did not dispute the other details listed in the sales brochure, such as the maintenance costs and the fact that the roof and plumbing had been replaced. In fact, the agent whose name appears in Manoa Yew's sales brochure, Terrence Harding, now has an interest in the property.
Harding, who confirmed Wednesday that he was the listing agent at the sale, is one of two directors of 1875 Yew Street Nominee Ltd., in British Columbia. who purchased the property on September 17, for $ 10.5 million, about $ 1.5 million less than the price indicated in the $ 12 million pamphlet. The other director of the company, Zvonimir Duric, is a director of Coltric Properties.
Coltric, which is acquiring properties, and its "sister company," VS Rentals, a property management company, are part of a network of related companies that recently acquired several rental properties in the metropolitan area. from Vancouver, explained Evans.
Part of the business model of business involves, as in Manoa Yew, the purchase of "underperforming" buildings, their improvement and the leasing of new tenants at higher rents, said Evans, "but we We are now at a difficult point. "
"We are changing our whole model, it is becoming more and more difficult," he said. "The reason is, I guess with the attention of the media, most tenants are not willing to leave. "
"I do not feel well doing what I do," said Evans. "We are people from the community, we are sorry for what is happening."
David Hutniak, CEO of Landlord B.C., representing the rental housing sector, said, "Personally, I do not know the companies or the people in charge, so I can not talk about their involvement in the sector. I will say that the BC owner does not support the "renovations" and therefore certainly does not fit the best practices of the industry … We are of the opinion that in most circumstances, an owner should not have to terminate a rental for renovations or repairs, even if it would be easier or perhaps slightly more economical. to complete the work. Homeowners who adopt this course of action unnecessarily disturb tenants and, frankly, harm the entire sector. "
Earlier this week, the Vancouver Sun announced that in another building owned by VS Rentals in the West End, tenants had fought their eviction notices and obtained a decision from the Lease Division to use last month, to then receive a second eviction notice weeks later.
Evans refused to answer the number of properties owned by the companies.
But Coun. Fry said he had received complaints about a dozen buildings in the Greater Vancouver area owned by the companies.
"This is extremely worrying for me," said Fry, who introduced a motion this month to create a tenants' rights office in the City of Vancouver.
Fry said, "Do not congratulate anyone who earns money, but we must be fair and not exploit." The practice of renovations seems to have been profitable in Vancouver, said Fry, adding, "These days are, hopefully, over, because I think we will begin to see a new leadership of the city council."
with folder by Carolyn Soltau
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