In Part 1, I talked about buying a condominium in Collingwood – Blue Mountain for personal use with offsetting rental income potential. If you decide that what you need is a unit that is part of a managed rental program, read on.
Buying a condo in this situation is essentially buying into a commercial venture in a condominium hotel and therefore, it is quite different from buying a standard residential condominium. In Blue Mountain, there are generally two types of managed rental program options available: one is to have a unit that is part of a rental pool and, the second is to have one that generates unit specific rental income.
Condo’s in the Village at Blue Mountain are part of a rental pool where revenues are pooled each day and shared among all suites not in use at the time by owners. Programs such as this have restrictions on an owners personal use limiting the number of days it can be in or out of the pool. Alternatively, the Intrawest townhome properties such as Rivergrass and Snowbridge and, the condos at Mountain Springs Lodge, run as a rental program based on the use of the particular home rather than a pooled program. I should mention as well that over the years, there have been changes in each development as to how the rental revenues are managed and it is very important for potential Buyers to always obtain current and accurate information.
Units that are part of a managed rental program are required to meet a certain standard of interior finishing and fixturing. Owners are not free to decorate as they please! There will be specs on everything from the type of carpet and window coverings permitted to the linens used on the beds. In all cases, there are lockable storage areas for owners to leave personal belongings between stays but the rest of the unit must have the approved standards sets. Buyers are able to request an inspection of a unit prior to making a firm purchase in order to get a list of required changes and/or repairs that must be made, if any, in order to join or stay in a rental program or pool.
That raises the next question. If a unit is part of rental program and you wish to opt out or, if it is not part of a program and you wish to join, there are rules and procedures that govern these actions. Condominium by-laws specify a minimum number of units that must be enrolled in the rental pool and if it drops below this number, you may not be allowed to opt out. Ask for a copy of the rental management agreement before making an offer. In some cases, there are cut-off dates for opting in or out of a program and these can be critical in your buying decision.
So far, we have discussed your first considerations when buying a condominium for both personal use with income potential:
• Will you be renting it out seasonally or for short time periods under 30 days?
• Do you wish to be part of a managed rental pool or, are you going to self-manage your unit?
• If you are opting for a managed program, are you more comfortable with a rental pool or a rental program and, what are the rules and policies governing each?
• Will you have to invest extra to upgrade a unit in order to enter or stay in a rental program?
In Part 3 next week, we’ll look at some of the costs that are involved in buying a rental stream condo such as these.
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg
hi marg
i found your site on the web. the wife and i are looking for an investment condo – which we can rent out. we might only use it 2 or 3 times a year ourselves
we are planning on coming up to the collingwood area this sunday. can you point us in the right direction
thank you
fred
Yes Fred and I’ll send you a direct email on this in just a moment. Thanks for stopping by.
Great article! Very informative. Thank you.
Thank-you!
Hi Marg,
Thank you for all the info. We are looking to buy a condo in the area that will primarily be for rental investment purposes and the occasional personal use. Please let us know of available opportunities and when we could come up there,. Will discuss budget and other specifics on your response.
Best regards,
Selwyn
Thanks for your message and I will get in touch with you directly.
can you please provide me with more information. and possibly information about spaces available. thanks
Hi Sally. I will email you privately. Thanks for your comment.
Hi Marg,
Great article.
I found your site by google. My wife and I are looking to buy an investment condo in the area that will primarily be for rental investment purposes. We’ll use it occasionally, may be 4-5 times a year. Please let us know of available opportunities. If you could share with us any documentation with ALL details on how the program works, that would be terrific. We would like to do a financial analysis (costs, expenses, revenues, etc.) before we decide to go ahead and get into the program.
Thank you.
Andy
Thanks for your comment Andy. I have sent you a PM with a reply. Happy holiday!
Hi Marg,
Thank you for this! I am looking to buy a condo for myself and my sisters to use 3-4 times/ year and rent it out for investment purposes. Can you please assist me with this?
I’d be happy to Katarina and will send you a private email. Thanks.