Question regarding Kitchener Lodging Houses:

[jonathanb]

Hello fellow investors-



I have some friends who are looking into purchasing student housing near Conestoga College's Doon Campus in Kitchener ON, and we have been getting mixed messages about whether or not a Lodging License is required to operate a home with students in it.



Some sources say "yes", some say "no" and my google searche brings up inconsistent results- depending on my spelling of "License" (or Licence).



If there is anyone who owns student housing in Kitchener, or have some experience with it please shed some light



Thanks again,

jon

 

[Mike Milovick]

I wouldn't touch it.



If you contact City of Kitchener, they will likely ask how the property is being leased out. I.e. - to a group of students (family) or to individuals (lodgers). If rented individually, you will likely need a lodging license - which will probably not be available due to minimum distance separations.



If you are renting out as a group, expect to be wacked in a year or two's time when rental licensing is implimented in Kitchener (its coming - once it gets its roots firmly entrenched in Waterloo's rental landscape). When this happens, expect dramatic reductions in rentable rooms, and increased fire, electrical and building requirements.



Of note, that area around Conestoga College also DOES NOT permit duplexing. Most areas in Kitchener do. The area around the college does not.

 

[jonathanb]

Thanks Mike for getting back to me.



I have been told by the city of Kitchener that lodging licences are not transferable- but one must reaply. So if you purchase an already licensed house, do you have any idea if there is a way to ensure the license would be granted upon closing?



Thanks!

 

[housingrental]

Hi Jon

You want to stay away from purchasing ANYTHING right now in Kitchener...

 

[jonathanb]

Hey Adam,



I know where you stand on purchasing real estate these days....



But im just looking for a little clarity. Do you think Kitchener specifically is a bad idea? Because of the proposed by-law in Waterloo? Or is it more to do with the fear of property values decreasing country wide?



Thanks again,



jon

 

[housingrental]

Hi Jon

My reasoning is I think it is a good idea to wait until we know exactly what rental licensing is going to look like in Ontario before making any purchases of non apartment buildings

Currently there is too much of risk - to both asset valuation and ongoing operating income - if you find a property you can add material value to and justify a fast resale if situation dictates that might change my thoughts...

Hope this helps

Adam