Do The SMOKING TENANTS Compromise Resale Value?

I read the other day a very interesting ad published on Canadian Real Estate Magazine, about the selling properties previousely occupied by smoking tenants and I really want to share it with you. You might be an investor or a potential investor or a smoker homeowner, or a smoker tenant, anyway, in any positions you are, it's good to know about it.

"The study, sponsored by smoking-cessation drug producer Pfizer Canada in regars with selling properties where smoking routinely took place, is suggesting that more and more buyers are inclined to give those properties a miss. These buyers are less likely to purchase a home where people have smoked.

About 27 per cent said buyers are flat-out unwilling to buy a home where resident’s smoked.

There’s more: The survey concludes that smoking in a house can reduce property value upwards of 29 per cent.

But landlords looking to prevent smokers from doing so in their properties may face a challenge in most provinces.

In Ontario, for example, landlords can include a no-smoking clause in any lease, writes real estate lawyer Mark Weisleder, but the building should have a clear no-smoking policy and tenants living in the building prior to the change, cannot be forced to adhere.

Also, “if (tenants) sign a lease that says no smoking, and later smoke, you cannot evict them just because they broke their promise made in the lease.”

My dear blog readers remember: smoking is legally prohibited in common areas of apartment and condo buildings. There is already legislation in place in Ontario for that. But the legislation does not extend to inside their apartment. A tenant can be evicted for smoking outside of their unit after written notice.

My Note: as I always advise my vendors, in order to get the best offer, the property has to be prepared before it goes on mls. Beside decluttering, the seller has to make sure the unit is freshly painted preferable neutral colors; winyl tiles replaced by new ones or ceramics or stripped and waxed; carper vacuumed and steamed or replaced by new broadloom or laminate or hardwood floor, pending of condition and budget; parqet flooring (very common in rental buildings) refinished if it's the case and a good cleaning using professional chemicals/ cleaners/dissinfectants. The property might need more interior renovations as kitchen/washroom renovation but they are not related to odor removing. I totally agree that the smoking tenants unit requires an extra money to be spent by the landlord planning to market it for sale or even lease it again, but it will not decrese the market value of the property as long as the property is very well prepared for maketing and it reaches the buyers/tenants apeals.  

If you have any question, please do not hesitate to contact me. I believe in second opinion! 

 

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Stefania Patraulea

Stefania Patraulea

Sales Representative
CENTURY 21 Leading Edge Realty Inc., Brokerage*
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