Since the beginning of COVID-19, more home buyers have been purchasing properties in cabin country. Spending more time at home, and longing for additional space both indoors and out, has sent many buyers into rural markets like the Sunshine Coast, causing sales to skyrocket.

With employer mindsets shifting towards more flexible work-from-home policies, providing home buyers with greater freedom as to where they can live. 

People are looking to get out into the outdoors not just for the summer season, but all year long. A lot of people looking at year-round places where they can live, versus just being able to go away for a few days at a time.

If you’re looking to make your first home purchase in “cabin” country, here are some things you’ll need to know before you buy. 

Consider Property Access and Distance to Amenities

Whether you’re eying a property by the lake or one that’s nestled in the forest, there are many unique settings to consider when buying a rural property. Your location can greatly impact your lifestyle, especially if you decide to live there year-round.

One of the first things you’ll likely need to determine when buying is how easy is it to access the home. If you plan to live at there year-round, you’ll want to ensure the roads to get to and from your residence are well maintained and accessible, especially during the winter. 

How remote your property is will also play a role in your purchase. The recent surge of all-season cottage buyers don’t want to feel too isolated, and want to be fairly close to neighbours in case there’s an emergency.

You’ll also want to consider proximity to basic amenities, such as grocery stores, pharmacies, and hospitals. Most cottage buyers prefer to be within 30 minutes of a small town where these services are available, and up to three hours from a major urban centre. 

Learn About Rural Infrastructure and Home Winterization

Unlike a city or suburban home, rural properties don’t always share municipal services. Instead, you will have to get familiar with the rural infrastructure needed to independently manage your home’s water, heating and sanitation utilities. 

Buyers need to be aware of the types of systems their home uses. Some properties feature dug or drilled wells, and source water from nearby rivers and lakes. Make note of how the home processes sewage, like through a septic tank, which is stored on-site and underground. 

If your plan is to live at the cabin all-year round, it’s vital your home is properly winterized and can withstand the cold. Make sure the home is well insulated in the walls, pipes and roof, and make sure the heating source is efficient for the size of the property. Be sure the cabin can also supply water in the freezing months with the help of a defrost line into the well or a heat trace that will keep the pipes from freezing.

It’s not uncommon to get zero service bars in rural areas either—be sure to confirm you can receive reliable mobile phone and internet service at the cabin, especially if you’re working remotely.    

Cell and internet service are obviously very important, especially for people that are doing a lot of work from home. Find out what areas may not have good service.

Calculate Cottage Insurance and Upkeep Costs

Just like any home, cabins come with a range of maintenance costs, though some of these expenses are unique to rural areas. 

You’ll want to factor in long-term upkeep expenses, like keeping the driveway in good condition so it’s easily accessible. Your property may be on a septic system, which will require pumping every three to five years depending on its size and usage, which also contributes to maintenance costs. When looking at a cabin property, examining the health of any trees and their orientation towards the house—cutting down sickly shrubs can get expensive. 

When it comes to financing your property, there are a number of factors that will contribute to your insurance rates, such as your distance from local fire stations, if your home is elevated from nearby water, and even how often the home is occupied. 

The mortgage lending process will also look a bit different from what’s involved for your typical city or suburban home. If your home meets the standards to be a primary residence, you may be able to put down a 5% mortgage deposit, though some lenders could request 25% in some cases. Hence, it’s crucial to understand the different implications for each rural mortgage provider. 

There’s a lot of things to think about, therefore, by enlisting my help as a local realtor I can ensure you have the most up-to-date advice.  

When we think about buying and selling real estate, it’s easy to overlook that, in many cases, the property being sold is a rental property that likely has tenants. In fact, with a majority of households in Canada owning their homes nearly one-third of all homes in Canada are rental properties. 

While most real estate transactions are pretty straightforward, different rules apply when a rental property is concerned. Let’s look at the different scenarios you might encounter when buying a rental property that has tenants.

Scenario 1: You Want To Keep The Tenant(s)

This is the simplest scenario and has the least impact on timing and conditions of the sale. No matter if the tenant has a fixed-term or periodic tenancy (month-to-month), once the sale closes they will fall under your responsibility as the new lessor (a.k.a. landlord). In most provinces, any fixed-term lease will revert to a periodic tenancy automatically when it expires.

You may be asking, “Do I need to sign a new lease agreement?” While it’s not mandatory to sign a new lease, The rules in the Residential Tenancies Act (RTA) will always apply, regardless if there is a contract or not. If the parties sign a new lease, the landlord can change the terms ONLY if the tenant agrees and if the changes comply with the rules stipulated in the RTA.

Scenario 2: You Wish To Occupy The Home Or Rent To A Family Member

There are two ways this works, but in both scenarios it’s important to clearly state your intent to occupy the home or assign it to an immediate family member (parent, spouse or child)—this does not apply to extended family or close friends—as part of your purchase agreement.

The tenant has a lease that has not come to term: 

The tenant’s lease remains protected until the end of the fixed term. Therefore, landlords need to ensure the buyer is aware they must comply with the existing tenancy agreement. This means you must assume responsibility for the tenant and serve notice to end the tenancy no less than the minimum period required by law before the end date of their fixed-term lease.

If you need the home vacant at the time of purchase, then the sale can only close on the last day of the tenancy, and the current owner is responsible for providing notice. Notice must be given according to the laws of the province or territory in which the home exists. 

When it comes to this situation, The lease must be respected regardless. In this situation you could open a discussion with the tenants and try to find a monetary compensation that they are comfortable breaking the lease agreement for, so that all sides are happy.

The tenant’s lease is month-to-month: 

The same minimum notice requirements apply in this case, though notice can be given immediately once the terms of sale have been satisfied. If you require the unit empty, the sale can only close after the day on which the tenancy ends.

Scenario 3: You Wish To Demolish, Renovate Or Repurpose The Property To A Non-Residential Use

This is often where things can get difficult, especially if due diligence has not been taken to prepare ahead of time before ending a tenancy, or if the work is not completed within a reasonable timeframe after the tenancy has ended.

Generally, if a plan is in place to demolish the home, if the home requires substantial renovations that require it to be empty, or if it’s being converted to a non-residential use, longer notice times can be expected. The notice period is anywhere from two months to a full year, depending on the province.

In the case where a multi-unit building is replacing the original rental unit, or where renovations are concerned, the tenants have the right to move back into the unit once the work is completed. Or the landlord and tenant may agree to end the lease early.

In some cases the landlord may be required to pay moving expenses, or to compensate the tenant, depending on the province and number of units in the property.

Scenario 4: The Tenant Is Paying Below Market Rent

When a tenant has been residing in a home for many years, rent often falls below market, causing the only downside for a buyer when they wish to keep a tenant. As years pass, property values, taxes, and mortgage rates rise, increasing the overheads for landlords and narrowing profit margins. 

Most provinces set annual limits for rental increases to limit abuse, though the premise is that a landlord risks losing a good tenant if they unreasonably raise the rent. A landlord must follow a minimum notice period, and if they have good reason to increase the rent beyond the guidelines, they can apply for permission from their provincial landlord tenant board. 

Rent may also be increased beyond the guideline amount if it’s justified by investing in improvements or renovations to the property.

Residential Tenancies Acts Resources

While there are many similarities from province-to-province, notice periods and restrictions on ending tenancies can differ greatly. For British Columbia rules and regulations please see: 

https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/02078_01#section49