Tax Treatment of Testamentary Trusts
It is becoming more common to see developments that include a combination of both commercial and residential uses. While these mixed-use developments can have some issues that need to be resolved from time to time, if they are properly set up, the issues are usually minimized and resolvable. The benefits of this type of set up can turn out to be a significant amenity for all parties.
However, one of the pairings that is starting to occur is that of the long-term (i.e. owner-occupied) residential mixed with short-term (i.e. vacation rental) properties. This type of mixing can often be problematic for the owner-occupier who is trying to maintain their normal sleep and work schedules, while a number of their neighbours are staying up late and enjoying their vacation in the sunny Okanagan. This is not usually a good combination for the owner-occupier.
If you are looking at buying a residential strata unit as your regular home, you would be wise to check the zoning bylaws at the municipality to see if the short-term rentals are permitted. You should also check the development’s strata bylaws to see if these allow for short-term rentals. If this is allowed, then you should give careful consideration to the compatibility of your intended use of the property and that of the vacation rental properties next door.
image courtesy of Arenamontanus