Things to Consider for Landlords

There are a many things to consider before making the decision to rent your property. Among them are:

          Wear and Tear on the property
          Management of the tenancy - costs and benefits
          Tenancy Laws
          Income Tax

Wear and Tear on the property

No need for explanation. Tenants generally cause more wear and tear than owners do. Expect to have to replace flooring and paint as a minimum after renting your property for any length of time.

Managing your property and tenants - Rental Management Agency

Vancouver real estate is considered a safe long-term investment. As a non-resident owner/investor, it can be very difficult to manage your property and your tenant so it's critical to have someone in Vancouver to manage your rental. It's possible to find an excellent tenant on your own but it's also possible to have a total nightmare tenant scenario that results in damage to your valuable property. We strongly recommend you consider employing a reputable property management agency to manage your property/tenancy in your absence. We would be pleased to make recomendations.

As of September 2008, you can expect to earn approx $2/sq ft -$3/sq ft on typical downtown rental codos. This varies widely, of course and some luxury, furnished, waterfront condo rentals fetch as much as $20,000/month. Vvacancy rates are very low and it's usually quite easy to find eager tenants.

The typical residential tenancy lease is for an initial 1 year fixed period, rolling into a month-to-moth thereafter.

Tenancy Laws

The Residential Tenancy Act is robust and in the eyes of many landlords often seems to favour tenants. It's crucial that you become familiar with the Act, the required paperwork and the ramifications of both. We can speak with you in detail about this issue and recommend you visit the Residential Tenancy offce  website to familiarize yourself with more information.

Selling Tenanted Properties

We can't stress emough the importance of employing a realtor familiar with the pitfalls of selling tenant occupied properties. Please visit Shaun's Selling Tenanted Properties page for more on this topic. Shaun specializes in downtown condo sales and has undertaken special legal training in selling tenanted properties.

Income Tax

Non-residents pay tax on income generated in Canada. The type and amount of tax and the requirement to file tax returns depend on your specific situation and the type of income generated. Canada has tax treaties with many countries, including the United States and the UK. A tax treaty is designed to avoid double taxation for people who would otherwise pay tax on the same income in two countries. You should consult a lawyer and an accountant who are familiar with your circumstances prior to entering into any purchase or rental agreement.