Upon the completion of my Bachelor of Commerce Degree from the University of Alberta, I am intent on purchasing several condominium units in downtown Edmonton and renting them on a short-term basis (i.e. by the week or by the month). To do so, I shall incorporate under the name Neat Accommodation (to be known as Neat throughout the remainder of this document). The operations of Neat will be governed under Alberta’s Residential Tenancy Act. This text will explore the operational implications of the act for Neat by making reference to Service Alberta’s Consumer Tips – Information for Landlords document and can be seen as an approximate, expanded equivalent to the legal section of Neat’s forthcoming business plan .
The document referenced includes the following disclaimer: “this publication is intended to provide general information only and is not a substitute for legal advice.” Accordingly, before the commencement of operations, a legal opinion will have to be sought to ensure Neat policies are in compliance with any related provincial legislation – particularly, the Residential Tenancies Act.
“The RTA says a landlord may be… the property manager who acts as an agent for the owner .”
The implication of this statement is that when and if points of Neat’s operation that specifically involve contact with tenants are contracted out to third parties, those third parties will in effect be acting as and for Neat. This creates a concern, as Neat will only employ one employee – Kory Orban – for the first several years of operation. Accordingly, accommodations for sick and vacation days will inevitably have to be made for said-employee and thus, third parties will have to be hired to perform all normal duties (i.e. booking reservations, check-in procedures, etc.) during those absences.
The most optimal solution that addresses this concern would be to hire a second employee whom could be fully trained and routinely perform all relevant operational procedures. However, this solution will not be viable in the beginning stages of the venture. Instead, third party service providers, such as phone answering services and the like, will have to be hired. In order to prevent said-service providers from making commitments or concessions to tenants that would normally be beyond the scope of Neat’s operations, service contracts and Neat’s operational policies will have to be clearly defined, codified, and enforced. Further, as an additional fail safe, Kory Orban will effectively have to remain on call, in perpetuity, or until another employee can be hired.
“The ‘notice of landlord’ must state the landlord’s name, the date, a postal address, and physical location in Canada .”
A small physical office will have to be maintained. This prohibits any sort of virtual office, work-from-home type-solution. A possible, cost-saving alternative would be to list Kory Orban’s personal address as said-physical location; however, for privacy, personal...