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Business licence and residential accommodation Permit - Edmonton

akinyioj

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Hello, I incorporated in 2013 and bought 2 properties under the corporation, one each last year and this year. I got a 'notice to comply' letter from the city of Edmonton telling me to apply for a business licence and something else to do with residential permit. The letter stated that fines for non compliance within a set deadline (which has now passed) were hefty - ie $400 per day that I had no licence. I have not applied yet but have sought the instructions on this from the writer of the notice without much success on how to go about it. The bylaw mentioned in the letter is 13138 and is a long document that scared me to read, or should I say, I haven't found the time to read. I would like some guidance on this, including what it entails, the financial implications, how to go about it and specifically what to do etc, going forward. Thanks
 

Alvaro Sanchez

Ottawa-Gatineau Investor
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I am not sure but I would check if you have an exception as you manage own assets. In order to manage properties for other people in Alberta, I think you require a license. I would call the city to get a clarification on this.
 

akinyioj

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Thanks. They seemed to be saying that I need a licence because my real estate is a business, not because I'm managing the business.
 

Alvaro Sanchez

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If you own the business that in turn own its assets, I do not see why you would need a license to manage own assets. I am not in Alberta so I would call the city directly.
 

Thomas Beyer

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It is a tax grab. Nevertheless I recommedn you get the license AND complain to the city too that their taxes are too high. It is a left wing governed city, like most in Canada.
 

alaas1977

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Does your properties have three suites or more? If so they consider it commercial rather than residential and can ask for a yearly business license. When I legalized my triplex they informed me of this, however I haven't had to yet though.
 

akinyioj

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Thank you all for your insights here. I have further questions for Thomas and Alaas:

Thomas, when you say 'Tax grab' do you mean the city is probably intending to add a monthly expense to my list of expenses through the business licence?

Alaas, when the city informed you of the need to apply for a business licence, did they state the penalty would be heavy and if so, did they follow up on the threat? Lastly, Alaas, you mentioned having legalized your triplex, was it not legal before, and did you have to rezone/apply for permits on renos existing without permits? If so, how did you manage to ward off being shut down in the meantime? Curious to know if it is better to try and legalize, if ever in such a situation, prior to applying for a business licence.
 

alaas1977

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Hello again

I might start by saying that I bought my properties in my personal names, so not sure if this makes a big difference.

I also know that the city has been cracking down on businesses that don't have a business license, I also own a Plumbing company in Edmonton, the city of Edmonton had set up a sting last year to catch contractors without a license, they set up a service call with several companies through out the day, our company was flagged as not having a license (ours expired the month prior), when we arrived we were ticketed and informed, once I sent in my expired business license and paid for the renewal they waived the ticket. They told me they were doing this with other trades i.e. electricians etc. really it is just a tax grab as Thomas has stated.

My property was an existing triplex (house converted to three suites), I had a small fire and the city was informed that I had a suited property. The safe housing committee came and they allowed it to remain a triplex as it was pre-existing and it was obvious it had been for a long time. I had to have an electrical company pull the permit for the extra work the city required, I also had to pull a plumbing/hvac permit as the furnace was installed by prior owners without a permit (these permits can't be done by homeowner) I had to apply for development permits etc, this was a pain as the city doesn't communicate well with the other departments. The development department at first said I couldn't have it, but the safe housing officer trumped them and allowed it, so I just had to get to the right department for approval.

Regarding being shut down, there was never a question of being shut down, the city is not trying to shut anyone down, they just want to make it safer for tenants and to be brought up to fire and safety codes, they were actually great to work with. With that being said, my place was very well kept, met most of the codes i.e. egress windows etc. I do know that the city often shuts down duplexes that have suites in the bsmt. It is often a good idea to legalize a pre-existing suite or at least ensure that most of the suite meets the fire code for ceilings and windows etc so if you do get caught you haven't much to do, and its safer for the tenants.

The city inspectors had told me the city "may" ask me to get a business licence for the property, however when I pulled the permits, etc I was never asked to (i've had it legalized for 4 years now). I've never been told to get a license, nor have I been told about penalties, this again may have been because it was a residential house converted to a triplex.

Lisa
 

akinyioj

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Wow, Lisa, this is excellent info. Thanks so so much for sharing. I wonder what would happen if the suite was recently built without a permit.... in a duplex. Is there a possibility that it can be allowed to be brought to code? Also when a business licence is applied for, does the city come over to inspect the residence or do they go by the info they already have and grant the licence? In short is this a long or short process?
 

Matt Crowley

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^ The only duplex zoning I know of that allows for suited properties in Edmonton will be in Blackford. To my knowledge, there is no zoning that approves legal suites in duplexes. This is one of the unresolved issues for increasing infill density...to justify our investment in transportation we need greater density but we are still designing cities and roads for lots of cars so we can't just upzone to allow more density in mature neighborhoods. The city is starting in some small ways to change their attitude on this: http://www.edmonton.ca/city_government/documents/Infill_Roadmap.pdf

Regarding being shut down, there was never a question of being shut down, the city is not trying to shut anyone down, they just want to make it safer for tenants and to be brought up to fire and safety codes, they were actually great to work with.

I've had to deal with Safe Housing Committee and they were not great to deal with. Practically unreachable and provided inconsistent messages throughout the group. Depends on who your Development Officer ends up being. Our DO suggested we could get lots of variances and relaxations and then a couple months later just sent us the legal secondary suite application. He didn't want to answer any questions on the suite at all. So it depends.

It is an extremely easy to get a business license and there are very few hurdles. It is a tax grab for the city so they want to make it as easy as possible to grant themselves a tax perpetuity. It takes days or weeks. Been a while since I got one.
 

akinyioj

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Oct 10, 2014
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Thanks SweetZone. How does one go directly to someone you can work with at the city? Or is there such a thing even?
 
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