First Nations Property Management Services
At HomeLife Advantage, we are incredibly thankful to have an office on First Nations land where we are able to offer all of our management services to people living in the community and surrounding areas.
Understanding First Nations Lease Land Agreements.
Before renting a property on First Nations land, it is important to fully understand how First Nations lease land agreements work to help prevent disputes and to protect the interests of both the land owner and the tenant.
Head Lease
A head lease is an agreement between the developer and the land’s certificate holder. In the event that the lease agreement is not followed by the developer, the certificate holder can choose to terminate the lease. It is important to note that a property manager is not involved with a head lease.
A head lease usually contains:
- Lease length (almost always 99 years)
- Rent amount per month
- Insurance coverage purchased by the developer
- Construction requirements (all construction must be approved by the certificate holder and built to code)
- No contaminants policy (e.g. no oil leaks from vehicles, dumped chemicals, etc.)
- Occupancy (whether the property is residential or commercial)
Sublease
The sublease is an agreement between the developer and the owner(s) of the property. All of the terms that are in the head lease will transfer down to the sublease, including getting approval for construction projects and the amount of rent due each month. The sublease will also cover what the developer is providing in return for rent, such as renting out a unit in a commercial building.
A property manager can be hired to help enforce the sublease, as well as to help educate the elected board of directors about their roles and responsibilities in regards to dealing with tenants.
Board of Directors
While properties on leased land can be either commercial or residential, lease land properties require a board of directors rather than a strata council. If the property is a business, the board of directors will have to follow the BC Business Corporations Act. If it is a residential property, then the board of directors will have to follow the BC Society Act. Either way, a board of directors will perform many of the same duties as a strata council, such as:
- Bylaw enforcement
- Bylaw creation
- Property maintenance (landscaping, leaking roofs, etc.)
- Budgeting for contingency funds
- Budgeting for maintenance fees
In addition to these duties, the board of directors will also need to file an annual report, which is the same for both commercial and residential properties. This report includes:
- List of shareholders involved with the businesses within the development
- List of directors on the board
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