Friday , May 7 2021

Dan Fumano: After complaints, the real estate company says they will change the model

A Vancouver group of companies is trying to change the way they work, the representative said this week in response to questions about their practice of buying old apartment buildings and paying long-term tenants to leave or evict.

This week, as Vancouver City Council examines measures to protect tenants from the practice of "renovation" and "aggressive redemption," dozens of kidnappers visited councils to share sometimes sick stories, and a group of landlords steadily increased.

Advocates say these cases are a great example of the need for tighter laws and better implementation in a city with an almost zero vacancy rate and increased rent.

And with the Vancouver Council and B.C. the government is taking measurements that could hinder the eviction of tenants for renovation, a representative for these firms, including Coltric Properties and VS Rentals, said on Wednesday that they are already making it difficult and "changing our entire model."

Valerie Farina shared the story of her 23-man unit "Kittsilano", called Manoa Yu, on Tuesday evening, which the company bought with Koltrik in September and immediately began offering money to tenants to make them leave. Green advice. Pit Fry asked questions to Farina, seemingly surprised that from all the complaints he had recently received for Koltric and VS, Farina's building was not even on the radar.

"I add it to my list of reports I have on VS-slash-Coltric," Fry said. "It's not on my list either."

Since September, The new owners of Farina offered the tenants three escalating offers for redemption, with the latest arrivals Monday night. "We are pleased to inform all tenants. To help in this transition, it will be easier for you, we have made a new offer," writes in a written offer, before emphasizing what is offered: a $ 5,000 buyback bonus, quarterly rent, $ 500 for driving costs, and a reference letter.

Farina told the estate manager she was ready to move temporarily, to allow renovation to be performed, so she could return thereafter, she said, but she felt he was under pressure to take the money and leave to allow new tenant to move to.

"Their focus is entirely on pushing people to redemption," Farina said. "This real pressure just happened and this constant debate about us to leave."

But when Postmedia News contacted VS Rentals on Wednesday, Vice President Christopher R. Evans said he plans to allow Farina and other tenants to know they can either stay at the time of the renovation or return thereafter.

When Postmedia conveyed this message together with Farina later that same day, she said: "Wow. It's not quite anything close to what we were told … To this point, we had nothing but: "Sooner or later, you will not have." "

While property owners often say that renovations are needed to keep much of the residential housing in the region for living to live in place, tenant advocates say evictions are often a tool for landlords to stop long-term residents and increase profits to increase profits. Senior Vancouver employees suggested in a recent memorandum that these types of blanket emigration alerts are often followed by new owners who are buying a building.

"The significant increase in marketable rentals in recent years has created an environment where unit turnover can mean a significant return on holders, and low rates of vacant rentals make it easy to find new tenants who are willing to pay new, higher rents, a recent letter by Dan Garrison, Vancouver's assistant director for housing policy and regulation, told the government's leased workforce.

"We are listening about these cases most often when renting a property is sold to a new owner. Given that long-term property owners usually advocate maintaining stable rentals, new owners can see the turnover of units as a way to increase revenue for a new investment. "

When the 90-year-old Manoa Yew was released for sale earlier this year, a brochure said the building cleared between $ 170,000 and $ 175,000 a year in net operating income after deducting repairs, maintenance, property taxes, insurance, utilities, and lift and other "various" operating costs.

The sales brochure also noted: "The roof and the water supply have already been replaced by a reduction in the required capital".

Evans said that the operating costs outlined in the sales brochure do not include the cost of financing a mortgage, which is significant. Evans, however, does not dispute the other details listed in the sales brochure, such as maintenance costs and the fact that the roof and water supply have been replaced. In fact, the agent whose name is listed in the brochure for sale Manoa Yu, Terence Harding, now has interest in the property.

Harding, who confirmed on Wednesday that he was a sales agent for sales, is one of the two directors of 1875, Yew Street Nominee Ltd., B.C. a company that bought the property on September 17, for $ 10.5 million, about $ 1.5 million below the listed price of a $ 12 million brochure. The company's other director, Zvonimir Duric, is the director of Coltric Properties.

The acquiring owner, and her sister company, VS Rentals, a property management company, are part of a network of related companies that have recently received a large number of rental properties in Vancouver Metro, explains Evans.

Part of the business model of companies, such as Manoa Yew, bought "insufficiently completed" buildings, improved and rented new tenants to higher rent, Evans said, "but now it gets to a point where it's difficult."

"We are changing our whole model, it's getting harder," he said. "The reason is, I assume, with all the attention of the media, most tenants are not ready to leave. "

"I do not feel good about what I'm doing," Evans said. "We are people in the community, we feel bad about what is happening."

David Hutniak, CEO of Landlord B.C. which represents the housing rental industry, said: "I personally do not know the companies or the directors so I can not talk about their involvement in the industry. I will say that Landlord BC does not support" renovation "and that is certainly not the best practice in industry … We are of the opinion that in most circumstances the owner should not put an end to the lease for renovations or repairs, even if it would be easier or perhaps a little more economical to complete the work. Landlords who use this course of action are unnecessarily unpleasant tenants and, frankly, harming the wider industry. "

Earlier this week, Vancouver did not announce that another building owned by the West-owned West-owned tenants fought their eviction requests and received a decision from the branch for residential tenants last month just to receive a second weekly eviction notice later .

Evans refused to answer how many property owners.

But Fry said he had received complaints about a dozen underground Vancouver-owned buildings owned by companies.

"It's extremely worrying for me," said Fry, who earlier this month presented a proposal to create an offshore dealership office in Vancouver.

"Let's not ask anyone to make money, but we need to be fair and non-exploitative," Fry said. The renovation practice seems to be profitable in Vancouver, Fry said, adding: "These days I hope to finish, because I think we'll start looking at a new direction from the city council."

with a dossier by Carolyn Soltau

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