Life lease an option for 55+ residents

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This article was published 19/12/2021 (870 days ago), so information in it may no longer be current.

When it comes time to downsize, whether preparing for or in retirement, many northeast Winnipeggers are choosing to sign a life lease rather than buy a condo or rent a traditional apartment.

In Manitoba, life leases are a type of rental agreement usually aimed at those 55 years old or older, where tenants pay an entrance fee for a rental unit, as well as rent each month to cover maintenance and other expenses. The model, which was originally designed by the provincial government, provides quality and affordable options for tenants in their golden years.

A number of life lease options are available in northeast Winnipeg, including the Cornerstone Life Lease Estates (1845 and 1865 Gateway Rd.). Cornerstone, which was developed by the Association of Reformed Christians in Action, has 103 units in two buildings, in both one- and two-bedroom options, and a number of amenities, including heated grade-level parking, utilities, property taxes, building insurance, maintenance services, snow removal, landscaping maintenance, and more.

Henrietta Hielema, a retired educator who sits on the board of directors at Cornerstone, believes the life lease model has a lot to offer.

“The rent (is) similar to market rent, but had the added amenities, for the same price.” Hielema said, who has lived in a number of rentals in two different provinces.

“Getting out of the housing market was a huge financial relief,” she added. “As a comparison, owning a condo is a distant second. Many older condos have not increased in value at the same rate as single family houses.”

One difference with life leases is that residents pay a refundable “entrance fee,” which helps cover costs associated with upkeep and repairs. At Cornerstone, for example, the fees range between $114,000 and $190,000.

“For most people selling their lifelong home, that is not onerous,” Hielema said. “Entrance fees usually are set at about half the initial built cost of a unit in a building. The newer the building, the higher the entrance fee.”

While a provincial spokesperson noted the province does not collect or track the number of life lease buildings or units, a number of property management companies operate life lease buildings in the area. Murdoch Management, for example, runs Grassie Villa (1395 Molson Ave.), while Donwood Manor’s Valhalla Cove (15 Valhalla Dr.) also has life lease suites for rent. 

“There are very few market value life leases in Manitoba, as most are non-profit,” Hielema noted. “Applied to 55 + market, housing costs are set to provide adequate housing for seniors as their income decreases. The only change in costs are in the monthly rent set annually. Well governed buildings have set aside a reserve fund to take care of major expenses, such as roof replacement, appliance replacement, updating of units, maintenance of common area costs.”

Sheldon Birnie
Community Journalist

Sheldon Birnie is a reporter/photographer for the Free Press Community Review. The author of Missing Like Teeth: An Oral History of Winnipeg Underground Rock (1990-2001), his writing has appeared in journals and online platforms across Canada, the U.S. and the U.K. A husband and father of two young children, Sheldon enjoys playing guitar and rec hockey when he can find the time. Email him at sheldon.birnie@freepress.mb.ca Call him at 204-697-7112

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