Many buyers are interested in obtaining a property with a suite so they can take advantage of the rental income potential. Though it may seem like a no-brainer, there are some factors to consider before purchasing a home with an income-producing suite. We had the pleasure of sitting down with John Hudey, a mortgage specialist with RBC. John was able to answer some of our questions surrounding rental suites, allowing us to better assist our clients.
An advantage of purchasing a home that has potential to produce rental income is you can often use that rental suite income to offset the cost of qualifying for the property. A maximum of 50% of the suite income can be used to help clients offset the additional costs of the home. In order to include the rental income in your mortgage approval, the bank will require a full appraisal so they can verify the rental value that will be used in the calculation of the offset. Another important thing to consider when seeking out a home with a rental suite is that the suite must be legal in order to use the rental income in your mortgage application. Having an illegal suite in your home can cause issues down the road. If bylaw officials are notified of an illegal suite they can have your suite decommissioned, leaving you without the additional income that was used to acquire your mortgage.
On top of rental income and mortgage applications, we recommend that our clients consider the other implications of becoming a landlord in British Columbia. There are many rules and regulations put in place for landlords to follow. If these rules are not abided by you could end up having to compensate your tenants for up to 12 months of rent. In order to avoid any potential issues, we encourage you to read through the BC Tenancy Laws and Rental Agreements. This will help you understand the full scope of what being a landlord in British Columbia entails.
If you are looking to purchase an income-producing property or are still weighing out your options – give us a call! We’d love to assist in this exciting new endeavour in your life.
When looking at a property, there are two notations that you might notice on title. One is a right of way and the second is an easement, both of which are terms often used interchangeably. However these two terms have different meanings when it comes to the use of your property.
Most properties in town have right of ways registered on title. This allows the installation of services like water, gas and cable on your property and neighbouring properties. These access points can be found anywhere on the property, but are usually found along the front of the property closest to the street. On the title of said property you will see exactly where the right of way is found and what the restrictions involved are. Having a right of way on your land is generally not an issue and will not limit the use or enjoyment you have of your property. That being said, it is good to be aware of the right of way restrictions, especially when it comes to building a shop or another building on your property – these may encroach on the right of way.
Easements are the second most common note found on title of homes in urban areas. An easement gives someone the right to cross your property for access. This is commonly seen when properties have a shared driveway. Again, easements are not detrimental to the use of your property; however there may be restrictions that you should be aware of before making your purchase.
There is no need to panic when an easement or right of way is listed on the title of a property. It’s important to review the title and any accompanying documents to ensure you are making an informed decision about buying a property with an easement or right of way. Of course we are always happy to guide you through this process and help you make the best choice for you and your family!
If you are looking for real estate professionals to assist you in finding your dream home or selling your current home we are here to help! With our combined experience and expertise we make it our goal to make your home buying and selling experience as seamless and stress-free as possible! We’d love to hear from you, give us a call or visit the contact us page of our website for more details!
Michele Courtney began her real estate career in the Cariboo region of British Columbia in 2005. As a former teacher, Michele immediately developed a passion for working in real estate. Michele believes that many of the traits that helped her succeed as a teacher also help her maintain her top performer status in the real estate industry. Her compassion and strong communication skills help her empathize and understand her clients, allowing her to develop a strong bond with everyone she works with.
In 2010 Michele moved back to the Island where she was born and raised and quickly began achieving top levels of sales achievements with the RE/MAX Ocean Pacific Realty team. Michele has since achieved the designation of Seniors Real Estate Specialist. She enjoys working closely with families to help make leaving the family home as easy of a transition as possible. She is also a member of Brookfield Global Relocation Service Providers, helping clients with tight and challenging timelines find homes that will fit their family’s needs.
Bill Anglin retired after a 25-year career with the Canadian Air Force. Due to Bill’s military experience, he is extremely familiar with the challenges families face when relocating, especially from a distance with very short timelines. Bill is passionate about his community, taking on a leadership role as a Councilor for the City of Courtenay as well as a Comox Valley Regional District Director. In addition, Bill has served Vice Chair of the Comox Valley Chamber of Commerce. Bill’s in depth knowledge of the local real estate market, zoning bylaws and land use rules make him a great asset to his team and an amazing resource for his clients.
In addition to his work in real estate, Bill is an extremely active volunteer in his community. Bill is the Vice President of the Comox Valley Healthcare Foundation, Director of the United Way Central & North Vancouver Island, a board member of the Sid William's Theatre Society and also Chairs the Comox Valley Destination Marketing Committee.
As a pair, Michele and Bill are able to offer their clients an exceptional real estate buying and selling experience. Their clients love that they always have two realtors at the ready to assist them. Regardless of the time of day or season, Michele and Bill’s clients will always have their real estate needs met. When listing a property Michele and Bill prepare separate market evaluations, this allows the two to compare their results and settle on the best price for their client. Bill’s thrives working with numbers and analyzing data while Michele uses her communication skills to better understand their clients needs and explain the buying and selling process. These differing skill sets make Michele and Bill a perfect and well rounded team, always striving to exceed their client’s expectations.
Now that you know a bit about The Courtney and Anglin Real Estate Group, they’d love to get to know you. Please reach out through email or phone if you are looking to buy or sell or if you have any questions regarding local real estate!