Condo Management

You are looking for a new place to live in Calgary and you keep seeing two words: condominium and apartment. They might seem similar. They are actually very different. Understanding the difference between condominium and apartment can save you a lot of money over time. As a company that helps people with properties in Calgary Green Casa helps people who rent and people who own navigate this choice every day. Today I will explain the financial differences between condominium and apartment. You will learn which option puts money back in your pocket and which one is more predictable. What Is the Real Difference Between Apartment and Condo Let me start with the basics. An apartment is a place to live in a building that one person or company owns. You pay rent every month. The person who owns the building takes care of everything. A condominium or condo is a place to live that someone owns by themselves. Even if you rent a condo you are renting from the person who owns it not from a company. So the difference between apartment and condo comes down to who owns the place. Apartments are built for renting. Condos are homes that people own inside a building with homes. When you compare condominium and apartment you are really comparing two ways of doing things. One way is where one person owns everything. The other way is where many people own their homes in the same building. How Monthly Costs Differ Between Condominium and Apartment When you rent an apartment your monthly rent usually includes everything. Includes some utilities like water and heat. The person who owns the building decides how rent to charge based on how much it costs to take care of the building. When you rent a condo you pay rent to the person who owns it. You might also have to pay extra fees. Many condo owners pass on the condo fees to you. Include them in the rent. However condos often have utility costs because each home has its own meters. You might have to pay for your electricity, heat and even water. When comparing condominium and apartment apartments often give you predictable monthly costs. Condos might offer lower base rent because owners are competing with each other. I have seen people save 200 dollars per month on a condo rent compared to an apartment only to pay 150 dollars more in utilities and parking. Always ask for a breakdown of the costs. Repairs: Who Pays for What This is a big deal. In an apartment building you call the person who owns the building or the property manager when something breaks. They fix it at no cost to you. Your refrigerator stops working? They replace it. Your toilet is always running? They call a plumber. In a condo rental the owner is responsible for fixing things inside your home. However some condo owners are slow to respond or try to cut corners. The condo corporation takes care of the areas like hallways, elevators and the roof. If your washing machine breaks the owner pays. When comparing condominium and apartment apartments give you peace of mind. You never get a surprise bill for a repair. At Green Casa we take care of both types of properties. We always tell people who rent that apartments are less stressful for maintenance. Condos can have nicer features and newer appliances. Amenities and Lifestyle Which One Feels More Like Home Apartments often have amenities like a laundry room parking lot and maybe a small gym. Condos tend to have amenities like a fitness center, party room, rooftop terrace, concierge and underground heated parking. However you pay for those amenities through your rent. The choice between condominium and apartment depends on your lifestyle. Do you actually use a gym or pool? If yes a condo might be worth the cost. If you never use amenities an apartment saves you money. Also condos often have rules. Many condos have rules about pets, noise and what kind of barbecue you can have. Apartments tend to be more relaxed. As a company that helps with properties in Calgary we have seen people love condo living for the aspect. Others prefer the simplicity of an apartment building. Rental Rules and Flexibility: Apartment vs Condo Apartments are run by management companies. Leases are standard renewals are predictable. Rent increases follow the rules of the province. Condos are run by owners. Some are landlords but many are regular people renting out their property. This means condo rental rules can be very different. One owner might allow pets and flexible payment dates. Another might demand -dated cheques and no guests after 10 PM. When looking at the difference between apartment and condo for flexibility apartments win for consistency. Condos win for negotiation. You can sometimes talk a condo owner into rent, free parking or a shorter lease. You cannot negotiate with an apartment corporation. I always advise people to read the condo rules before signing a lease for a condo. These rules can restrict things you never expected. Resale Value and Investment Potential for Owners This section is for people who are thinking about buying a home. Apartments are rarely sold as units. You typically cannot buy one unit in an apartment building because the whole building is owned by one company. Condos are designed for ownership. So if you want to become a homeowner a condo is a place to start. Over time condos in Calgary have increased in value at an average of 3 to 5 percent per year. Apartments as properties are bought and sold as entire buildings, which is a different investment game. In the condominium vs apartment discussion for buyers condos win easily. You can start by renting a condo to test the building then buy a unit when one becomes available. Many of our renters at Green Casa have done that. Which One Is Better for Families and Pets Families need space, storage 10

You own a condo in downtown Vancouver but you live overseas for work. Every year you get a tax bill. The Vancouver vacant tax is taking away your profits. What if I told you that you could turn that tax bill into rental income instead? I work with a property management company in Vancouver. I have seen this happen many times. Today I will show you how to turn vacant in Vancouver into profitable occupied properties. You will learn the steps the costs and the peace of mind that comes with having tenants. Vacant in Vancouver can be turned into income. Why Vacant in Vancouver Are a Growing Concern Vancouver has a housing problem. Many people need homes and too many properties sit empty. That is why the city created the Vancouver vacant Tax in 2023 the city reported over 2,000 properties declared empty. Those owners paid millions in taxes. Here is the opportunity. Renters are desperate for long term homes. Families students and workers cannot find places. By renting out your property you do two good things. You provide housing for someone who needs it. You eliminate your Vancouver vacant Tax bill. It is a win win. I have helped owners who were paying 40,000 dollars a year in taxes switch to earning 50,000 dollars a year in rent. That is a 90,000 dollar swing in their favor. Homes in Vancouver can become profitable. The City of Vancouver Vacant Tax Rules for Rental Exemption Let me be very clear about the rules. To avoid the tax your property must be rented for least six months of the calendar year. Each rental period must be 30 days or more. That means no short term rentals. You need a tenancy agreement ideally in writing. The tenant must use the property as their residence. You cannot rent to your cousin for two weeks. Call it done. The city checks. They ask for utility bills, rent receipts and sometimes tenant declarations. The good news is that once you have a long term tenant you are fully exempt from the Vancouver vacant Tax. You do not need to rent for 12 months. Six months and one day is enough. That gives you flexibility if you want to use the property yourself for part of the year. Vancouver vacant Tax rules are in place to help. How to Prepare Your Property for Renters If your property has been empty for a while it needs some work. Walk through each room as if you were a tenant. Is the paint fresh or peeling? Are the appliances working? Does the plumbing have any leaks? Tenants expect a safe functional home. You do not need luxury finishes. You do need working heat, hot water and secure locks. I recommend a cleaning before listing. Also check smoke detectors and carbon monoxide alarms. If your property is a condo review your strata bylaws. Some buildings have restrictions on rentals. You do not want to find a tenant only to discover the strata says no. A property management company can handle all of this for you. We have checklists and trusted contractors to help with homes in Vancouver. Finding Tenants for Your Vancouver Property This is the important step. A bad tenant can cost you more than the Vancouver vacant homes Tax ever would. You need a screening process. Check credit scores, verify employment call landlords and run a criminal background check. Look for tenants who have income and a history of paying rent on time. In Vancouver demand is high so you can be selective. You should also charge market rent. Do not price low or you will attract problem tenants. Do not price high or your property will sit empty again. A property management company in Vancouver knows the market rates for every neighborhood. We also handle the paperwork. A Residential Tenancy Agreement that follows BC law is necessary for homes in Vancouver. Working With a Property Management Company to Avoid the Tax Let me be honest with you. Managing a rental from another city or country is hard. Tenants call at 2 AM when the toilet overflows. They move out without notice. They dispute deposits. A property management company takes all that stress away. We find tenants screen them collect rent handle maintenance and deal with evictions if needed. We also ensure your property is never empty enough to trigger the Vancouver vacant homes Tax. We monitor your occupancy days. We remind you when a lease is ending so you can find a tenant before the six month window closes. We also file the declaration on your behalf with your permission. For owners who live abroad this service pays for itself times over. Vacant in Vancouver can be managed easily. Costs of Renting vs Paying the Property Tax Vancouver Let us do the math together. Assume your condo is 1 million dollars. The Vancouver vacant tax is three percent, or $30,000 per year. That is money gone. No benefit. No asset building. Now assume you rent the condo for $3,000 per month. That is $36,000 per year in rent. Subtract property management fees at 8 percent, $2,880. Subtract maintenance and vacancy allowance, say $3,000. Your net rental income is around $30,000 per year. Your property likely appreciates over time. Instead of paying 30,000 dollars in tax you earn $30,000 in income. That is a $60,000 difference. Even if you only rent for six months you still save the tax. Earn some income. The vacant tax in Vancouver is designed to make renting the financial choice for homes in Vancouver. Real Life Success Story From One of Our Clients I want to share a story. A client of ours owned a townhouse near False Creek. He lived in Hong Kong for work. He was paying the Vancouver vacant home Tax every year about $22,000. He thought renting would be much hassle. We convinced him to try. We found a family who needed a three bedroom home. They signed 10

You get your condo fee statement and you are shocked. Again. The amount is higher than year and you are tired of it. As a property management company in Calgary Green Casa hears this complaint all the time. Today I want to explain why condo fees go up and what you can do about it. We will look at factors such as insurance costs, utility rate increases, reserve fund requirements, and other less obvious considerations. Importantly I will give you practical steps to slow down future increases. Let us turn our frustration into action. Insurance Costs Are Out of Control Let me start with the reason. Condo insurance premiums have risen significantly across Canada. In Calgary some buildings have seen their master insurance policies double or even triple in two to three years. Why is this happening? Climate change has caused damage from hail, wind and water so there are more insurance claims. The companies that insure insurance companies have raised their rates a lot. Also some insurance companies have left the market so there is less competition. Your condo fees pay for this master policy. When insurance goes up 50 percent your fees go up to cover it. What can you do? Ask your condo board to shop around every year. Work with an insurance broker who specializes in condos. Encourage owners to get their own unit insurance to reduce liability claims. Every small action helps your condo fees. Utility and Energy Costs Keep Going Up Gas, electricity and water have all become more expensive. If your building includes any utilities in the condo fees you feel this directly. Older buildings with boilers single pane windows or poor insulation waste money every winter. What can you do? Advocate for energy audits. Many Calgary buildings can get rebates through the Clean Energy Improvement Program. Upgrading to LED lighting installing thermostats and sealing drafts can reduce utility costs by 15 to 25 percent. The upfront cost may seem high. The monthly savings on condo fees add up quickly. I have seen buildings get their money back in three to four years then enjoy fees for the next decade. Reserve Fund Contributions Are Finally Catching Up For years many condo boards kept fees low by not putting enough money into their reserve funds. They knew they should save for a roof or elevator but they did not want to raise fees. Now those roofs are. Those elevators are breaking down. The condo boards are playing catch up. They need to raise condo fees to build a healthy reserve before a disaster hits. The truth is that fees should have been higher along. The best you can do now is support a funded reserve. It may hurt now. It prevents big problems later. Wage and Service Contract Increases The people who maintain your building deserve fair pay. Cleaners, security guards, landscapers and snow removal crews all cost more than they did five years ago. Minimum wage has gone up. Skilled trades are in demand. Your property management company in Calgary has also had to raise its fees to keep staff. These are not increases. They are the way it is. What can you do? Do not switch to the contractor. Cheap contractors cut corners use workers or go out of business mid season. The money you save today becomes repair bills tomorrow. Instead ask your condo board to sign multi year contracts with vendors. Long term relationships often come with prices. Unexpected Repairs and Emergency Work No matter how well you plan things go wrong. A pipe bursts in the parkade. Hail destroys the roof. A fire in one unit damages the hallway. These emergency repairs drain operating budgets and force fee increases. The best defense is a preventative maintenance program. Catch problems before they become big ones. Also ensure your building has insurance deductibles. Many buildings have raised deductibles to premiums but then they struggle to pay the deductible when a claim occurs. Set aside an emergency fund in your operating budget for exactly this purpose. A prepared building can handle surprises without raising fees. How Many Units Are Rented vs Owner Occupied Here is a factor that most owners do not think about. Buildings with a lot of units often have higher condo fees. Why? Investors are less likely to volunteer for the condo board or attend meetings. They are less invested in long term maintenance because they can sell and move on. They may push for fees to maximize their cash flow, which leads to deferred maintenance. Eventually the building. Fees rise sharply to catch up. If you are an owner living in your unit get involved. Join the condo board. Encourage owner occupants to do the same. An engaged condo board keeps fees stable because they make long term decisions. What You Can Do Personally to Influence Condo Fees You are not powerless. First attend your general meeting. Ask questions about the budget. Vote on fee increases. Second volunteer for a committee. Two hours per month helps. Third be an owner. Do not cause damage to areas. Follow the rules. Report issues quickly before they worsen. Fourth support your condo board when they make necessary decisions. If they recommend a fee increase to fund the reserve vote yes. Complaining now leads to problems later. Finally consider running for the condo board yourself. The best way to control condo fees is to help set them. As a property management company in Calgary we love working with owners who understand that stable fees require active participation. Conclusion You now understand why condo fees keep rising. Insurance, utilities, reserve fund catch up wages, unexpected repairs and owner engagement all play a role. The good news is that you are not helpless. Get involved ask questions support your condo board and advocate for spending. At Green Casa we help buildings navigate these challenges every day. Rising fees are not a sign of failure. They are a sign of management catching up to 10

Running a condo building is not about collecting fees and cutting the grass. It is about protecting the investment of every owner who lives in the condo building. As a property management company in Calgary Green Casa has seen what happens when condo management is done versus when it fails. Today I am giving you a step by step checklist for the condo management practice. You and I will walk through planning, maintenance schedules, board communication and legal compliance. By the end you will have a roadmap to a well run happy condo building. Step One Build a Realistic Annual Budget The best condo management practice starts with money. Your annual budget for the condo building must be realistic not optimistic. Begin by reviewing years actual expenses for the condo building. Then add 3 to 5 percent for inflation on line items for the condo building. Do not forget utilities, landscaping, snow removal, elevator maintenance, cleaning supplies and management fees for the condo building. You also need to budget for services like accounting and legal advice for the condo building. Once you have operating expenses for the condo building calculate your reserve fund contribution for the condo building. Most experts recommend putting least 10 to 15 percent of your annual budget into reserves for the condo building. Present the draft budget to your board two months before the fiscal year ends for the condo building. Give owners at 30 days to review before voting for the condo building. A rushed budget leads to owners and underfunded condo buildings. Step Two Maintain a Healthy Reserve Fund I cannot stress this enough. The reserve fund is your condo buildings insurance policy against disaster. The best condo management practice requires a funded reserve based on a professional reserve fund study for the condo building. This study, done every three to five years predicts when major components like roofs, windows, elevators and parking lots will need replacement for the condo building. It tells you how much money you need to save each year for the condo building. Many condo buildings ignore this. Keep fees artificially low. Then a 500,000 dollar roof replacement comes due. No money exists for the condo building. The board must levy an assessment and owners get a sudden bill for 10,000 dollars each for the condo building. Avoid this nightmare. Fund your reserve properly every year for the condo building. Your future self will thank you. Step Three Create a Preventative Maintenance Schedule Reactive maintenance is expensive. Proactive maintenance is cheap. The best condo management practice includes a written preventative maintenance schedule for every system for the condo building. Change HVAC filters every three months for the condo building. Inspect the roof per year once in spring and once in fall for the condo building. Test fire. Sprinklers monthly for the condo building. Clean. Downspouts every autumn for the condo building. Lubricate elevator tracks every six months for the condo building. Inspect the parkade for cracks and water stains quarterly for the condo building. Service the boiler and hot water tanks annually for the condo building. Keep a log of every inspection and repair for the condo building. This schedule not prevents emergencies but also extends the life of your condo building components. I have managed condo buildings that followed this religiously and saved over 30 percent on long term repair costs for the condo buildings. Step Four Communicate Clearly with Owners and Residents Silence creates suspicion. The best condo management practice requires transparent communication for the condo building. Send a newsletter via email for the condo building. Include maintenance, recent repairs, financial updates and resident spotlights for the condo building. Post announcements in the elevator and on a community bulletin board for the condo building. Hold general meetings that are well advertised and actually informative for the condo building. For issues like water shutoffs or fire alarm testing use a text messaging system or phone tree for the condo building. Also create a process for owners to submit questions or complaints for the condo building. Respond within two business days every time for the condo building. When owners feel informed and heard they pay their fees on time. Treat common areas with respect for the condo building. Communication is not skills. It is protection for the condo building. Step Five Enforce Rules Consistently and Fairly Nothing destroys a community faster than enforcement. The best condo management practice applies the rules to every owner, no exceptions for the condo building. If the bylaws say no storage in parkade then the board president cannot store their winter tires there either for the condo building. If quiet hours start at 10 PM then the owner who donated to the fundraiser gets the same warning as everyone else for the condo building. Create a written enforcement policy with steps verbal warning, written warning, fine and then legal action for the condo building. Apply fines consistently for the condo building. Keep records of every violation and every action taken for the condo building. When owners see that rules apply equally they stop testing boundaries for the condo building. When they see favoritism they stop caring for the condo building. Consistency builds trust. Trust builds community for the condo building. Step Six Hire a Professional Property Management Company Your board membersre volunteers for the condo building. They have time jobs, families and their own lives. Expecting them to handle maintenance calls financial reports bylaw enforcement and vendor management is unfair to everyone for the condo building. The best condo management practice always involves hiring a professional property management company in Calgary like Green Casa for the condo building. We handle the operations so your board can focus on big picture strategy for the condo building. We collect fees, pay bills, manage repairs, enforce rules and prepare statements for the condo building. We also stay current on all legislation changes for the condo building. The cost is typically 5 to 10 percent of the operating 10

Benefits of First-Time Homeowner Programs You Should Know Buying your home can be really tough. It feels like you are trying to climb a mountain without a map. The down payment seems impossible to save for. The mortgage process is very confusing. There is good news. First-time homeowner programs are here to help people like you. As a property management company in Calgary, Green Casa has seen many renters become homeowners using these programs. Today, I want to tell you about every program, the real benefits, and how you can qualify for them. You will see that owning a home is closer than you think. What Are First-Time Homeowner Programs and Who Qualifies? Let me explain it in a way. First-time homeowner programs are government programs that make buying a home more affordable. They include help with payments, tax credits, and special mortgage rules. You are considered a first-time home buyer if you have not owned a home anywhere in the world in the past four years. Some programs also help people who have gone through a divorce or who have only owned a home.  The best part is that these programs are available across Canada, including Calgary. Understanding first-time homeowner programs is the thing you can do before you start looking at homes. The Home Buyers Plan Using Your RRSP for a Down Payment The Home Buyers Plan is a program. It lets you withdraw up to $ 35,000 from your Registered Retirement Savings Plan without paying tax to buy or build your home. If you are buying a home with a partner, you can take out up to 70,000 dollars. You have 15 years to repay the money into your RRSP without penalty. The first payment is due two years after you withdraw the money. This program is very powerful because you get to use your savings that would otherwise be locked away until you retire. You are basically borrowing money from yourself at zero percent interest. First-time homeowner programs give you grants or loans, but this one uses your own money in a more flexible way. I have helped many tenants become owners by suggesting they start saving in an RRSP two years before they plan to buy a home. The First Time Home Buyers Tax Credit The First-Time Homebuyer Tax Credit is another program. You get a 10,000 dollar tax credit on your tax return. This means you get about $ 1,500 back in your pocket. You do not need to apply for it. You just claim the credit when you file your taxes for the year you bought your home. There are no income limits. You can claim it even if you used other first-time homeowner programs. I always tell our tenants that this credit is like a gift from the government for making a financial decision. The 1,500 dollars can cover your fees, home inspection, or your first utility bill. Every dollar counts when you are furnishing a home. The Home Buyers Plan Using Your RRSP for a Down Payment The Home Buyers Plan is a program. It lets you withdraw up to $ 35,000 from your Registered Retirement Savings Plan without paying tax to buy or build your home. If you are buying a home with a partner, you can take out up to 70,000 dollars. You have 15 years to repay the money into your RRSP without penalty. The first payment is due two years after you withdraw the money. This program is very powerful because you get to use your savings that would otherwise be locked away until you retire. You are basically borrowing money from yourself at zero percent interest. First-time homeowner programs give you grants or loans, but this one uses your own money in a more flexible way. I have helped many tenants become owners by suggesting they start saving in an RRSP two years before they plan to buy a home. The First Time Home Buyers Tax Credit The First-Time Homebuyer Tax Credit is another program. You get a 10,000 dollar tax credit on your tax return. This means you get about $ 1,500 back in your pocket. You do not need to apply for it. You just claim the credit when you file your taxes for the year you bought your home. There are no income limits. You can claim it even if you used other first-time homeowner programs. I always tell our tenants that this credit is like a gift from the government for making a financial decision. The 1,500 dollars can cover your fees, home inspection, or your first utility bill. Every dollar counts when you are furnishing a home. The First Time Home Buyer Incentive Shared Equity Program The First Time Home Buyer Incentive is a well-known program, but it is very powerful. The federal government offers a shared equity mortgage. They give you 5 to 10 percent of your home purchase price towards your payment. For a built home, they offer up to 10 percent. For an existing home, they offer up to 5 percent. You do not pay interest on this amount. You just pay back the percentage when you sell the home or after 25 years. If your home’s value goes up, you pay back a certain amount. If it goes down, you pay back less. This is not a loan; it is a shared equity program. The only catch is that your household income in Calgary cannot exceed 150,000 dollars, and your mortgage plus the incentive cannot exceed 4 times your income. Among all first-time homeowner programs, this one offers the direct cash help with the fewest strings attached. The GST New Housing Rebate The GST New Housing Rebate is another program that can help you. If you buy a built home, you have to pay Goods and Services Tax. First-time homeowner programs include a rebate for part of that GST. You can get back 36 percent of the GST you paid up to a maximum of 6,300 10