An increasing number of people are opting to become more aggressive when trying to build their portfolio and saving for their retirement. They may realise that their funds will not grow at all if left in a typical savings account and that the stock market is too unpredictable. As a consequence, they may be thinking about property investment and how they can make that work for them. If you're thinking about buying an apartment or town home in an existing development subject to strata management, why do you need to be careful before making revenue-related plans?
Reading the Bylaws
As you may know, most multifamily developments are subject to rules and regulations laid down as part of the strata management plan. These rules are typically designed to ensure that owners and occupiers can enjoy the facility without any confrontations, controversy, maintenance issues or financial worries. These rules and regulations are set down in the bylaws that were initially approved by the owners when the development was built and must be adhered to by newcomers.
Short-Term Is Where the Money Is
You may want to make as much money as possible from your investment in a unit, especially as people seem to be doing particularly well by renting out their apartments to short-term tenants. After all, online apps have grown markedly in recent times, catering to those who want to stay in a home rather than a hotel. However, you need to be very careful to ensure that your plans do not fall foul of the bylaws linked to that particular property.
It's All in a Word
If you read the bylaws and cannot see any mention of short-stay letting, you may still want to be careful as some people have fallen foul of a simple definition in similar cases. For example, some bylaws may simply state that each unit is a "residence" and this word has been construed to mean long-term as opposed to short. There have been some high-profile cases recently where an appeal was made all the way up to the Supreme Court simply on the basis of that one particular word.
You may want to get clear permission from strata managers to ensure that your unit can be used for a short-term let before you make the investment, just in case there is any confusion in the future. Have a word with your real estate agents so that they can help you find this out before you proceed.