What is a Life Lease?
Life Lease vs Condo
| Life Lease | Condo | |
|---|---|---|
| Security of Tenure | Yes | No |
| 100% of Purchase Price Returned | Yes | No |
| Possibility of Capital Depreciation | No | Yes |
| Strata or Condo Fees | No | Yes |
| Realtor Commissions | No | Yes |
| Possibility of Special Assessment | No | Yes |
| Certainty About Price at Move-Out | Yes | No |
| Simple Move-Out Process | Yes | No |
| Restriction on Residents | Yes | No |
| Worry Free Living | Yes | No |
| Peace of Mind | Yes | No |
| Investment Guaranteed to be Returned within 90 days | Yes | No |
Frequently Asked Questions
A life lease is a rental arrangement where the tenant makes an initial cash contribution referred to as the entrance fee. When tenancy ends, the cash contribution is returned to the tenant (or to the estate in the event of death). To learn more on on Life Leases, please visit the Manitoba Residential Tenancies Department on their website www.gov.mb.ca/rtb.
AFTER THE ENTRANCE FEE DEPOSIT IS THERE STILL A MONTHLY RENTAL AMOUNT?
There is still a monthly rental amount due each month, however the amount is substantially less than what rent would be in a similar project that is a traditional rental. This is because the tenants have paid a substantial portion of the equity required for the project with the entrance fees. The entrance fee is $150,000.00 per unit.
There is also a one-time security deposit payment that is equal to half a months rent for each unit required at move in.
WHAT ARE THE BENEFITS OF LIFE LEASES?
There are many benefits! To name a few:
- Tenants find they are part of a community of like minded people with common interests and of similar age and values.
- The rent is reasonable and the entry fee is safe from fluctuations you would encounter in the real estate or investment markets.
- The entrance fee requirement generally allows for tenants who care for the property and take pride in the appearance of their community.
- If circumstances change in a tenants life, only three months’ notice is required to move out and have the full entrance fee returned. This gives tenants peace of mind instead of having to worry about selling their home.
- Although the entrance fee is not earning interest, the contribution itself helps by saving monthly rent as a portion of the equity required for the project is funded by the tenants.
WHAT HAPPENS TO THE ENTRANCE FEE?
The entrance fee is held in trust by a trust company. Vionell Holdings uses Concentra Trust. As the project reaches occupancy, Concentra can allow the Landlord to use most of the money to pay part of the construction costs. Concentra will keep two entrance fees in trust as a float to repay tenants moving out in the future.
HOW MUCH IS THE MONTHLY RENT?
Rent amounts for this project have not yet been finalized. Once the project has completed the initial stages of estimating costs for the project, VHP will have an idea of what rent will be set at.
ARE PETS ALLOWED IN THE COMMUNITY?
One small dog (adult weight under 35lbs) or one cat is allowed in units on the main floor only. An additional pet deposit is required equal to half a months rent.
WHAT IS INCLUDED IN THE MONTHLY RENT?
Each unit comes with one assigned parking spot in the underground heated parkade. The units are also equipped with five appliances (fridge, stove, dishwasher, washer and dryer). Water for the suite and common area electricity as well as building and grounds maintenance is also included in the monthly rent.
WHAT DO I PAY IN ADDITION TO THE MONTHLY RENT?
The tenant pays for hydro in their suite, as well as cable and internet services. If you have two vehicles and require additional parking, a parking space in the outdoor parking lot can also be rented for an additional cost.
HOW CAN I SECURE MY UNIT?
During construction, pre-leasing will be available. This will give you an opportunity to secure your preferred unit! A $1,000.00 pre-lease deposit will be required to secure your unit of choice. This deposit is refunded to you after your move in or should you decide not to move forward with your unit. Once construction is reasonably complete, the $150,000 entrance fee is due.