What is the Empty Homes Tax?
The Empty Homes Tax and BC Speculation and Vacancy Tax were originally brought in to target vacant properties, increase vacancy rates and create affordable housing.
As a quick summary, here is an infographic outlining the details of the Vancouver Empty Homes Tax and the BC Speculation and Vacancy Tax;
The Future Of The Empty Homes Tax
Based on data from the 2018 tax year, it was clear that many property owners chose to pay the tax as opposed to renting out their property, which has led the City of Vancouver to consider a number of changes:
- Increasing the rate in general
- Increasing the rate based on years of vacancy
- Increasing the difference in rates for Canadians and foreign owners
- Sorting properties into different categories and taxing each category differently
Considering the current structure and the other ideas under consideration, making your investment property available to rent is the best way to avoid paying additional taxes in the current climate.
For example, the city decided to increase the tax from 1.25% to 3% for the 2021 tax year.
How to Rent Out Your Property
So now you face two problems:
- finding quality tenants
- finding the time and resources to properly rent your place out.
Luckily, the whole rental process can be conducted seamlessly from start to finish using the liv.rent app.
All conversations with tenants, booking showings, credit checks, lease agreements and financial transactions are facilitated through the platform, making renting easy for you, the landlord, as well as the tenant.
Benefits to Listing with liv.rent:
- All tenants are credit checked and verified ensuring quality tenants and providing peace of mind.
- Everything can be done within the app, from chatting with possible tenants and scheduling viewings to signing contracts and collecting rent payments.
- Rental contracts are easily exported/downloaded/printed to be used as evidence in your tax declarations
- And so much more, find out how landlords can rent easily with liv.rent
- Learn more about becoming a landlord on liv.rent
- First Time Landlord Checklist for a step-by-step guide to renting out your property
- Vancouver’s Empty Home Tax Explained
- The Government of B.C.’s Speculation and Vacancy Tax
- The City of Vancouver’s Municipal Empty Homes Tax
Rethink The Way You Rent
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