Condominium owners across Edmonton are sounding the alarm about what they describe as coordinated investment tactics designed to seize control of residential buildings and convert them into rental properties.
The strategy is straightforward but aggressive: investment firms simultaneously purchase individual units throughout a building, accumulating enough voting power to control the board of directors and reshape the entire complex into a rental operation.
"They can start taking control of the board of directors and issuing special assessments and levies that the other owners maybe can't afford," explained Darlene Reid with the Realtors Association of Edmonton. "Now these people are being forced out of their homes and forced to sell."
Residents at The Berkeley, a condominium building located near 101 Avenue and 116 Street in Edmonton, have reported receiving multiple unsolicited purchase offers from various investment companies. The letters promote a process called "deconversion," which converts owner-occupied condominiums into rental housing, often with above-market purchase prices dangled as incentives.
The Real Risk
The concern among owners is straightforward: if an investment firm acquires a majority stake in the building, remaining homeowners lose leverage over their own property. Owners who refuse to sell could face escalating special assessments, property management changes, and ultimately, forced displacement from their homes.
One company involved in these activities, Harmani Investments, acknowledged the practice in a statement to Global News. The firm said it focuses on creating long-term rental housing and respects that not everyone supports deconversion. However, Harmani noted it makes "voluntary" purchase offers and exercises ownership rights on any units it acquires.
"It is totally legit and legal — I just don't think it's very ethical," Reid said, noting that similar takeover campaigns are occurring at multiple Edmonton buildings.
The practice highlights a broader concern in Canada's housing market, where institutional investors increasingly compete with individual homeowners for residential properties. While investment firms argue they're addressing a rental shortage, homeowners worry about losing control of their living spaces and communities.
Reid said the Realtors Association of Edmonton is monitoring the situation closely as more buildings report receiving aggressive purchase campaigns.
This article is based on reporting from Global News. Read the original story on Global News.