What are Market Rentals??

[Account Closed]

I was recently in touch with a sales rep from a MF development comprised of Townhouses and Condos that I have been looking to invest in. I was told that the condos are designated as "Market Rental" and cannot be owner occupied. As I have stated in my previous post I am new to real estate investing and this is the first potential deal that I am seriously considering.

My goal is to purchase a condo and rent it out regardless, however I am just wondering if units being designated as "Market Rental" is a common thing in the real estate/development world. Below is an excerpt from the email I had received from the sales rep.

Also myself and this deal are located in Surrey.

PS. Can anyone tell me what is meant by the first bullet point.

Thank you!

[Jason Ridout]

I know municipalities were supporting developers building purpose built rental housing, but usually the entire building/complex is owned by one person/corp. I've never seen individual ownership of units in a multi family rental building. That would mean the entire building is strata. Typically developers want to build and sell the units and move onto the next project, so holding a rental building isn't appealing. I guess this is a creative way to be able to build rentals to make the municipalities happy AND sell the units off so they can move on to the next project.

The first point of arms length rental for 20 years would mean that you, family or friends can't live in the unit for at least 20 years. These were purpose built rental units. They don't want people to buy them to live in.