Vancouver landlords ordered to pay $57,100 over illegal office conversion

B.C.’s Residential Tenancy Branch has ordered Akhtar Nawaz, Sarwar Khan and 1460317 B.C. Ltd. to pay $57,100 in administrative penalties over an unauthorized residential conversion in Vancouver. The company owns a mixed-use commercial building whose address was redacted in the decision.

City inspectors found in mid-2025 that parts of the second and third floors had been divided into rooms resembling single-room accommodation units, with people living there despite no approval for residential occupancy. The City of Vancouver issued several not-safe-to-occupy orders, while Vancouver Fire Rescue Services identified fire and life-safety concerns and later issued do-not-occupy and fire-watch orders.

The Compliance and Enforcement Unit began investigating at the city’s request in November 2025. Its decision says the building remained occupied without the required permits until at least April 13, 2026.

The respondents said they were working with consultants and regulators to remedy the issues while avoiding immediate displacement of existing occupants. Director Scott McGregor found that explanation did not justify the prolonged non-compliance, noting the conversion and tenancies began without required approvals.

McGregor imposed $5,000 per tenancy for the conversion, remediation and occupancy-order violations, plus $2,100 for an electrical-system violation affecting the building as a whole. The company, as owner, and Nawaz and Khan, as directors, were found liable; Tayyaba Butt was not. The penalties are payable to B.C.’s Finance Ministry by Sept. 14.