Divided co-ownership is not a new phenomenon on the real-estate development scene in Quebec, being that the first divided co-ownerships were introduced around 1970. Since that time project styles and trends have evolved: highrise buildings, row houses, triplex construction, etc. Some are certainly more luxurious than others and some units have impressive floor plans, often of more than a 1000 square feet.
However, a new trend has recently been seen on the Quebec market, that is to say units referred to as “micro-condos”, whose habitable space amounts to approximately 450 square feet, or less. Except for the bathroom, the living space is laid out in “zones” on an open concept without separating walls between the areas. With such a floor plan the amenities need to be compact and functional: down sized household appliances, beds that fold up into the wall, etc
There will definitely be buyers in the market for just such a product: the young professional living alone without children, who spends a lot of hours at the office and to their to leisure activities outside of the house. Or, the student whose parents want to set them up in a pied-à-terre during university, but who want to invest in real estate rather than to pay rent for an apartment. It could also be an attractive product for those looking to invest in real estate with an aim of renting their unit to generate rental revenue.
On the other hand, this type of dwelling could bring certain challenges stemming from the activities of daily living: buyers need to bear in mind that the kitchen area of the unit above risks to be close to the “bedroom” area in the unit below. Consequently, we are convinced that the owners will have to show discretion and tolerance towards their neighbours when some noise does occur and many of the other inconveniences associated with being neighbours.1 It is our hope that property developers will pay particular attention to the sound-proofing of the units, as well as to foresee certain restrictions on the right of co-owners to replace the floor coverings (ex: to prohibit the installation of ceramic tiles).
Considering that co-ownerships of this type are likely to find buyers among real estate investors, we anticipate that the clauses of the declaration of co-ownership dealing with the renting of units will be more specific on the subject of the right of co-owners to do so. In our opinion, it would be important to allow short-term renting of units, which would take into account the fact that the characteristics of the units lend themselves to this practice. In doing so, the property developer will regulate, from the beginning, the renting of the fractions and the purchasers will then be able to make a more informed purchase. This would be preferable to current practice, i.e. stating in the declaration of co-ownership that the renting of the fractions is allowed, without further details, which usually leaves it up to the co-owners to regulate how they exercise their right to rent. This often obliges them to react to the potential difficulties caused by short-term renting (frequent comings and goings, recurrent moving in and out, etc..).
Do not hesitate to communicate with our specialized team of lawyers for any question on this subject.
However, a new trend has recently been seen on the Quebec market, that is to say units referred to as “micro-condos”, whose habitable space amounts to approximately 450 square feet, or less. Except for the bathroom, the living space is laid out in “zones” on an open concept without separating walls between the areas. With such a floor plan the amenities need to be compact and functional: down sized household appliances, beds that fold up into the wall, etc
There will definitely be buyers in the market for just such a product: the young professional living alone without children, who spends a lot of hours at the office and to their to leisure activities outside of the house. Or, the student whose parents want to set them up in a pied-à-terre during university, but who want to invest in real estate rather than to pay rent for an apartment. It could also be an attractive product for those looking to invest in real estate with an aim of renting their unit to generate rental revenue.
On the other hand, this type of dwelling could bring certain challenges stemming from the activities of daily living: buyers need to bear in mind that the kitchen area of the unit above risks to be close to the “bedroom” area in the unit below. Consequently, we are convinced that the owners will have to show discretion and tolerance towards their neighbours when some noise does occur and many of the other inconveniences associated with being neighbours.1 It is our hope that property developers will pay particular attention to the sound-proofing of the units, as well as to foresee certain restrictions on the right of co-owners to replace the floor coverings (ex: to prohibit the installation of ceramic tiles).
Considering that co-ownerships of this type are likely to find buyers among real estate investors, we anticipate that the clauses of the declaration of co-ownership dealing with the renting of units will be more specific on the subject of the right of co-owners to do so. In our opinion, it would be important to allow short-term renting of units, which would take into account the fact that the characteristics of the units lend themselves to this practice. In doing so, the property developer will regulate, from the beginning, the renting of the fractions and the purchasers will then be able to make a more informed purchase. This would be preferable to current practice, i.e. stating in the declaration of co-ownership that the renting of the fractions is allowed, without further details, which usually leaves it up to the co-owners to regulate how they exercise their right to rent. This often obliges them to react to the potential difficulties caused by short-term renting (frequent comings and goings, recurrent moving in and out, etc..).
Do not hesitate to communicate with our specialized team of lawyers for any question on this subject.