VacantHomes.ca

Investment & business

Bought to renovate and resell, and empty the whole way through.

A renovation vacancy on a deadline, where every week of delay costs carrying charges.

Typical duration

Two to six months

Notice you get

Planned

Contactable?

Yes

Dominant risk

Schedule slip, theft, and freeze during works

A flip combines a renovation vacancy with a financing clock. Carrying costs run whether the trades show up or not, so schedule slippage is directly expensive in a way it is not for an owner renovating their own home.

The property is empty, full of materials and tools, unlocked during working hours, and frequently in an inner-city community where that is visible.

Coverage is also its own question. Standard homeowner policies generally do not respond to a vacant property under renovation held for resale.

What makes this different

Every situation on this site is empty for a reason. These are the things specific to this one.

A financing clock on top of the renovation

Delay has a direct weekly cost, which changes the value of somebody making sure trades actually attend.

Materials and tools on site

A more attractive target than an empty house, in a property that is visibly under work.

Coverage almost certainly needs to be specialised

Vacant, under renovation, and held for resale is three strikes against a standard policy.

What typically goes wrong

  • Trades not attending and nobody knowing until the next visit
  • Materials and tools on an unoccupied, visibly-under-work site
  • Intermittent heat through winter works
  • Coverage not responding to a vacant renovation held for resale

Need someone at the house?

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