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Vancouver 2010 Rental Accommodation
Problems With Renting 2010 Homes and Condos – Recommendations
for Vancouver Homeowners Part 2 of 3
In Part 1, we touched upon the idea of renting
your own home as a rent 2010 accommodation and some of the problems
associated with self-managing the tenancy. Things like escaping
on a holiday during the Olympic 2010 rentals are not possibly
for self management as the tenant may need your help during their
stay.
Plus, property management issues for your furnished 2010 rental
home may come up that includes conducting criminal/credit checks,
meeting the actual tenants staying at your 2010 rental accommodation
in addition to damages and theft. Other issues explained in Part
1 include the collection of deposits, rent, security/damage deposits
and cleaning fees for your furnished rental 2010 Vancouver home.
In the second part of our series on possible 2010 Vancouver rental
problems, we cover the basics of strata bylaws in your community,
income tax filing and other hotel tax issues in the Lower Mainland,
in which your furnished 2010 Vancouver rental may be subject to.
In addition, if you are self-managing, how do you compete against
well branded 2010 property managers and cruiselines promoting
thousands of other suites just like yours? In this Part 2 article,
we will also cover some of the problems with 2010 Vancouver rental
accommodations after the Winter Olympic Games when thousands of
vacated suites will become vacant and available on the open market.
We also discuss the Vancouver 2010 Rental problems for current
investors renting out their suites and ending tenancies to accommodate
visitors during the Olympic Games. All in all, there are certain
benefits to renting yourself and self-managing your rental home,
but there are also many disadvantages and Vancouver 2010 rental
problems that can arise if you decide to self-manage and forget
about the details.
Strata Bylaw Issues May Cause Problems With
Your 2010 Vancouver Rental Condo or Townhome
With many new developments, you may be part of a strata or home
owners association in which you pay a monthly strata fee that
covers things like property management, garbage collection, recycling,
water, common area, landscaping, building maintenance and gas
utilities. However, a apartment or condo strata also has a lot
of say in rentable suites within the complex and community. Firstly,
you must check that your condo strata allows for short-term rentals
and furnished condos for rent for the 2010 Olympic Games. In many
case (actually the majority of new condo buildings), the strata
has set new bylaws in restricting short-term Vancouver 2010 Olympic
rentals. Some of the issues surrounding these new condo strata
bylaws for renting during the 2010 Olympics is because of security
issues mainly, but also because of the damages caused by the mass
move-in and move-out of visitors and tenants. Also, during the
Vancouver 2010 Games, the noise level from these rentable furnished
2010 condo accommodations will be louder and more gregarious then
ever, leading to more complaints from owner occupied units. Many
condo strata bylaws now restrict any type of short-term 2010 rental
accommodation for any home owner who isn’t the original
purchaser. What this means is that unless you are the original
purchaser of the new condo, the condo strata bylaw will restrict
you from even renting out your condominium apartment to anyone
in the future. Therefore, you should definitely check with your
apartment condo strata and the bylaws surrounding short-term Vancouver
2010 rentals. Again, if you are caught, the condo bylaw infraction
fees are quite severe, sometimes even into the thousands of dollar
range. Therefore, strata bylaws may cause problems for your furnished
2010 rental condo ideas.
Personal Income Tax Problems Surrounding Renting
Your Home as a Vancouver 2010 Accommodation
For those looking to self-manage or even rent through a 2010 Olympic
property manager, whatever rental income that you are benefiting
from is considered taxable income by the government. If you are
one of those people who think you can get away with not reporting
this 2010 Vancouver rental income, go for it. We certainly DO
NOT advise against breaking the law, and the consequences are
very severe. Not only will you owe them the original Vancouver
2010 rental taxable income, but you will also get an income tax
reassessment for that year, possibly an audit and you will need
to pay interest. SO GOOD LUCK WITH THAT! So, for any regular person
looking to rent their home as a furnished 2010 Vancouver rental
accommodation, the taxable rental income from your tenancy will
need to be reported to CRA during the next tax season. Remember
that because you are renting your home for a gain (that is your
primary intention and there is no other way of treating it), 100%
of your rental income gain will be taxable. What you would do
is add your total profit to your total income for that year, and
100 per cent of it will be reported as taxable income. This is
a far cry from the capital gains tax for long-term investment
intentions in which only 50% of your gain is taxable income. Therefore,
this creates Vancouver 2010 rental problems for homeowners who
sit at the threshold of tax brackets. When you add Vancouver 2010
rental income to your work income, you may end up in a higher
tax bracket then usually, and therefore, will need to pay more
taxes on ALL of your income. If you go through a property manager,
they should be able to provide you with a final cashflow balance
that you can submit to your accountant or use in filing your personal
income taxes. This should cover your profits for your furnished
2010 Vancouver Olympic rental accommodation. Just make sure that
you are reporting the total revenue to CRA minus any expenses
that are deductions and write-offs for preparing or managing the
furnished Vancouver 2010 rental home or condo, so that you can
offset the income a bit. The final cashflow should be reported,
and NOT the total income.
GST Rental Rebate and Renting Your
Furnished 2010 Accommodation Implications
You may want to check with your accountant, but there may be implications
on whether or not you can apply for the GST524 Rental Rebate if
you lease out your furnished Vancouver 2010 rental accommodation
during the Winter Olympic Games. CRA and the GST Branch are very
stringent on who can apply for the GST Rental Rebate and the conditions
and regulations surrounding the amount you get back is quite stringent.
If you are closing on your property within 12 months of your anticipated
furnished 2010 Vancouver rental accommodation becoming available
to tenants or visitors for short-term rental leases, you may be
out of luck when it comes to applying for the GST Rental Rebate.
Again, this only applies to those investors and homebuyers who
are looking to get a rebate on the GST at closing. In addition,
the GST 524 Rental Rebate is only offered to recently completed
and closed properies (whether they are condos, townhomes or single
family detached homes). With this in mind, if you just closed
on your property within 12 months of the Vancouver 2010 Olympic
Games, and decide to rent 2010 furnished accommodations, then
you are out of luck in applying for the GST524 Rental Rebate.
This is because your GST 524 Rental Rebate must contain a copy
of your 12 month residential tenancy lease, and if you either
break an existing lease or get a visitor for the 2010 Games in
for a short term rental before a 12 month tenancy lease, you CANNOT
apply or get the GST 524 Rebate back at all. Therefore, renting
your furnished 2010 Olympic suite is only smart if you don't qualify
for the GST524 Rental Rebate, or if you have already rented your
home or condo out for 12 months and received the Rebate already.
Remember that the GST524 Rental Rebate can only be claimed for
units around $350,000 market value at closing or less, which represents
mostly studio, one bedroom and some two bedroom suites in the
Lower Mainland. The amount refunded for the GST 524 Rental Rebate
can be as much as $10,000 or even more, so renting your 2010 Vancouver
furnished accommodation may actually not be worth it if you lose
your ability to claim this GST refund.
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VANCOUVER 2010 GUIDES AND CHECKLISTS
THE BEST FURNISHED
2010 PARALYMPIC RENTALS & AFFORDABLE CONDOS FOR MARCH 2010
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