In Vancouver, B.C., the residential real estate vacancy rate is at a near-historic low of 0.6%. There are many more people looking for a room or home to rent than there are places available to live.
Massive complaints to Vancouver authorities have yielded a solution to increase available housing, and financial responsibility is falling onto the shoulders of area homeowners who own currently unoccupied homes. In 2017 and beyond, homeowners who do NOT live in or rent out their homes each year for a minimum of six months will be billed with a new Empty Homes Tax (EHT) at 1% of the assessed property value.
In Vancouver, B.C., finding a place to rent has become nearly impossible for potential tenants. This lack of available housing has prompted review by authorities as to the roots of the problem.
Our company is already ahead of the curve, and have programs in place to support homeowners through this new EHT process. We have completed thorough analysis on this new tax, and have consulted with a Vancouver-based housing researcher.
Homeowners not living in their properties actually have an opportunity to avoid the tax and make money by working with us to quickly obtain a tenancy agreement in 2017. Homeowners who have tenant occupied properties in 2017 will not be charged the tax in April 2018.
Homeowners who do not self-declare or who make false declarations will be subject to fines and penalties (up to $10,000 per day). A program to audit occupancy registration is currently being developed, and will be similar to provincial and federal audits currently being used for other self-reporting programs.
Empty Homes Tax Details: What You Need To Know
What new challenges do non-occupying homeowners face?
Emergent information states that the annual penalty for homeowners with homes currently unoccupied will be 1% of the assessed value of the home, with the penalty due April 15, 2018. What’s more, City of Vancouver employees may be authorized to enter properties impacted by this legislation for the purpose of determining whether a property is unoccupied and subject to the tax. If someone is occupying the property, they must consent before the property is entered.
Empty homes must now be rented for a minimum of six, 30-day periods over the course of year. These periods do not need to be consecutive.
Our mission remains the same: to help Vancouver’s homeowners with Empty Homes Tax Savings by providing housing for eligible tenants. Despite these new changes and the new tax, this crisis can benefit homeowners with empty houses. We can help you avoid the tax by providing an immediate legal tenancy agreement, filling your home with a tenant, and registering your home as occupied by a tenant. A tenancy agreement is a piece of evidence that may be required to prove the home is occupied.
We can help you to complete all necessary steps, and will make this required process easy to ensure early compliance so that you avoid financial penalties. Just as importantly, we will provide you with guaranteed monthly income from renting your currently unoccupied home. Explore our website to learn the details of our innovative Empty Homes Tax Savings, FlexLease, and Boxing & Storage programs.
Homeowner of an empty home? Complete our online Rent Value Assessment. We will contact you with a report.