No such thing as a non-conforming strata.
There are two options when it comes to a multiplex. It can either be one land title with a co-ownership agreement or a strata title. This article will be discussing the latter. So, ensuring your strata conforms to regulations is paramount. “There's no such thing as a non-conforming strata. It is not a legal term,” says Katharine Olson, Founder of Groundbreaking Strata. “It is a tool for placation of developers and realtors when they know that the CRF [contingency reserve fund] or the bank accounts are not set up properly or that the governance is not being done properly.”
When buying a unit in a multiplex that you’ll be sharing with others, take the time to do due diligence and ensure that the strata is set up properly. Ask to see the paperwork, and if a developer says “no strata fees” are applicable for a particular multiplex, it’s best to steer clear.
“The strata process of the property, it's very early in the stages, so it's tied directly to the building permit and the development permit with the city,” says Summer, Projects Coordinator at Costar Construction. She notes that Costar always ensures that they do this for their multiplexes.
Stratas have financial advantages.
Stratified multiplexes have advantages beyond collaborative ownership. They also allow for more flexible living arrangements and financial benefits. “Let's say you are a retired couple and you developed your property into a fourplex. One stratified, one not stratified. The stratified one gives you options,” says Ryan McKinley, Senior Mortgage Development Manager Retail Lead, Strategic Housing Initiatives at Vancity. “You can live in a unit, you can rent the other units, you can sell the other units and you can actually realize some of the equity in your property.” You wouldn’t be able to sell off individual units as easily if everything was on one title, he notes.
As with any strata, Olson advises buyers, “Don't skim. Don't skim on the minutes. If you are looking at buying into a strata, take your time, sit down, and think of reading through all of the strata council and AGM minutes, SGM minutes. As if it is ‘the story of us’ for the strata corporation in all its glory. And really get to know what living there is going to be like.”
The advantages and pitfalls of shared living.
After you move in, you’ll have to keep in mind you’ll be working together with others.
“I think that some of the most common pitfalls when people first move into small strata is that they don't take the time to get to know it,” says Olson. “And not just their unit, but the bigger picture of how they're going to exist on the property and within the neighbourhood.”
Small-scale strata living involves being close to your neighbours. Whether that is sharing maintenance tasks or pitching in to repair the roof, taking the time to know your property, fellow residents and neighbours can help prevent conflicts later.
Olson also notes that renters should be treated as full members of the community, even if they don’t own their unit. “I think that it's a very old school mentality to look at tenants as a different class as other residents,” Olson says. “In fact, when I do notices as reminders of things, regardless of what the issue is, I will say, you know, ‘dear residents’ or ‘to residents attention’ rather than ‘owners and tenants’ because even saying ‘owners and tenants,’ it's separating them.”
Don’t be afraid to introduce yourself to your neighbours and fellow residents, either. Whether that’s sitting down for a meal together or even just knocking on their door when you move in. For instance, in a fourplex, Olson says that, “Even though there's only four of you, you're still shared. You're still a shared asset. You still have to get along with each other.”
When you move into a brand new strata, Olson suggests working out strata fees in a way that works for everyone. They don’t have to be monthly. They could be quarterly, every six months or even yearly, just as long as they are collected regularly. That way, when unexpected expenses, or even expected expenses, do arrive, you’ll be able to cover everything from routine repair and replacement of appliances to totally redoing the roof.
While you’re not dealing with as many stakeholders as you would in a condo tower, that can actually make things harder. “If anything, you have to get along even more than the larger ones because towers, they can have some dissenting voices and they can still be functional. But if you have a fourplex and two versus two, you're never going to get anything done,” says Olson. Add to the fact that some stakeholders may also be family members in a multi-generational living situation, it is worth it to get everyone to work together and cooperate, rather than compete.
That does not mean you all have to do everything yourself. Professional strata consulting and management are available for multiplexes, too. “Being a strata and professionally managed multiplex, you don't have to be too worried about upkeeping and maintaining a lot of the common areas,” says Louis Nguyen, Sales Director at Costar Construction.
Self-management is still possible, and Olson offers support and resources to help self-managed, small-scale stratas as well. She notes that conflicts often come down to pets, parking, relationships with people and noise. If you go down the self-management route, it’s best to be organized and proactive. Olson says that you can still get professionals to help, whether that’s by surveying the property and taking note of everything and the state it’s in, to hiring them to work on specific projects, such as repairing concrete or complex items like heating systems.
It’s all worth it.
This may all seem overwhelming, but at the end of the day it’s not too different from any other form of strata living. “What makes it worth it is that you're passing down something real,” says Olson. “You think about generations of storytellers and various cultures, that's what you're doing. You're knitting the fabric of your community as a building there. You're writing your story and you get to choose it together.”
Many Homeseekers looking at multiplexes agree. For instance, Hajeir Mazinani, who is set to move into Costar’s WEKillarney multiplex, says, “In a smaller strata, like a multiplex, I feel that you have a true voice for your slice of the community.”
