Advice from Vancouver Property Management Experts
Next year, Vancouver’s empty home tax will increase from 1.25% to 3%. The city nearly tripled the current tax rate in an effort to put more rentals on the market while supporting affordable housing initiatives. Our property management experts predict that this increase will bring major changes to the market once it goes into effect.
What Is the Empty Home Tax?
In 2018, the empty home tax came into effect in a bid to tackle the city’s housing crisis and low vacancy rates. It was instituted to spur owners to rent out their vacant homes. Home owners who do not rent out their home (which isn’t their principal residence) for at least six months of the year are taxed on the assessed taxable value of their home. Starting next year, this rate will be 3% of the property’s assessed taxable value. Owners must declare their housing status annually.
Why Is This Important?
For those who own homes that sit vacant for all, part or most of the year, this news means they will find it more difficult to rent out their home in a saturated market, which is predicted to skyrocket once the increased tax rate takes effect. If they are unable to find renters for more than half the year, they may be subject to the hefty fees.
What Can You Do and Why Professional Vancouver Property Management Expertise Is Critical
Those who want to beat the rush to rent out their property will have to do more than just list their home in advance. They’ll have to use corporate and relocation marketing avenues, as these types of renters are currently the most lucrative during COVID times. The vacancy rates in Vancouver are higher than in previous years, due to the lack of international students, workers on visas and the general public who have opted to move out of the city with remote work on the rise. The current renters tend to be working professionals who need relocation for new or temporary work in Vancouver. These types of renters are generally only accessible through corporate networks that work with professional rental management companies, such as HostGenius.
Additionally, those looking to rent their homes will need extra advertising to make their rentals stand out against the competition. They’ll need to post on multiple rental channels, and target renters using detailed analytics and demographic analysis.
Not Sure How the Tax Will Affect You?
Talk to one of our Vancouver property management experts and we’ll assess your property and its rental potential for the coming year. Contact us here.