If you own property in Vancouver, did you know the cost of not having it occupied? The Empty Homes Tax has first come into place this year and here’s what you need to know about it if you are a Vancouver rental property owner.
If you’re not yet a Vancouver rental property owner – perhaps you should be! Our property management services ensure that you receive the maximum benefit from owning property in Vancouver.
Will the Empty Homes Tax Affect Me?
All residential property owners will have to submit a declaration each year to state whether the property is occupied. Any landlords with an empty rental property will face having to pay the tax. If your Vancouver rental property is empty for over 6 months of a year, you will be required to pay tax to the cost of 1% of the property’s assessed value.
To put this in perspective, you will be taxed $1,000 for every $100,000 of your property’s assessed value. Is your condo worth $500,000? You will be taxed for $5,000 at the end of the year if you do not occupy your property.
Why Does The Empty Homes Tax Exist?
Vancouver has one of the country’s lowest rental vacancy rates, as well as being one of the most expensive places to rent. This tax came into place to discourage properties in the City of Vancouver from being wasted, sitting unoccupied.
How Can I Avoid Paying The Empty Homes Tax?
There are some exemptions to paying the Empty Homes Tax but, the best way to avoid paying it is to ensure your property is rented out for at least 6 months of a year. Bruce Ward Realty has lots of experience in quickly placing tenants into appropriate Vancouver rentals.
With over 30 years of real estate experience, Bruce Ward Realty is a property management company Vancouver residents have been trusting for decades. You can learn more on our property management page – we’ve helped hundreds of property owners just like you. If you would like to talk to us about our Tenant Placement Services or Property Management Service Package, please contact us today.