Vancouver 2010 in Other Languages
SPECIAL FEATURE
_______________
Other Resources
_______________
|
Problems with Renting Your 2010
Vancouver Rental Home - Why You Shouldn't Rent 2010 Vancouver
Suites - Part 3 of 3
In this 3 part series about the problems you
may encounter when renting your own home or condo during the 2010
Vancouver Olympic Games, we’ve covered everything from property
management issues before, during and after the games in addition
to the collection of money. Other very important issues and problems
surrounding the rental of your home during the 2010 Olympic Games
includes condo bylaw issues surrounding short-term rental accommodations,
personal income tax reporting, cashflow and expense problems as
well as the inability to apply for the full GST Rental Rebate
for a new property.
In Part 3, we will examine other problems associated with renting
your furnished 2010 Vancouver rental accommodation that includes
possible Vancouver Hotel Room Taxes as well as other municipal
or regional taxes too, both of which you will need to pay back
shortly after the tenancy and obviously comes with a lot of paperwork.
Other things involved with the Vancouver 2010 rental problems
includes the Primary Residence Exemption on your home and what
that means to your future taxes on your property even though it
is deemed your primary residence in addition to competition coming
from all angles including new cruise ship 2010 rental inventory,
property management and other bulk vacation companies offering
rental housing. Lastly, we will examine some problems involving
placing new long-term tenants into your rental home or condominium
after the 2010 Olympic Games when the inventory and vacancy rates
start skyrocketing.
Furnished 2010 Rental Problems
With Hotel Room Tax Issues
In addition, if you are renting out four or more units during
the Olympics, you are also subject to the 2010 Vancouver Hotel
Room Tax (HRT), which is equal to 8% of the accommodation rental
price. This has to be charged back to the tenant. However, some
homeowners may opt to ‘lump’ it into the final rental
price, and therefore, you will be responsible for paying the Vancouver
Hotel Room Tax (HRT) at the end of the tenancy. There are many
steps to go through in order to setup a Vancouver Hotel Room Tax
number, and also to forward HRT Hotel Room Vancouver Tax to the
government after the Olympic Games. The Vancouver Hotel Room Tax
is subject to any hotels, motels, resorts, cabins, boarding houses,
B&B’s, privately owned vacation homes, condominiums
and similar establishments sold by operators who offer four or
more units of accommodation in British Columbia. In addition,
homeowners looking to rent their homes as furnished 2010 Vancouver
rental accommodation during the Olympic Winter Games may need
to pay an addition municipal and/or regional district tax that
amounts to up to 2% of your purchase price. Municipalities that
have this municipal 2010 Rental Accommodation tax includes Victoria,
Nanaimo, most regions in Greater Vancouver and Whistler. The Ministry
of Small Business and Revenue administers this tax for the municipalities
under the Hotel Room Tax Act. However, the municipal and regional
district tax is separate from the Vancouver 2010 Hotel Room Tax
HRT and has its own tax return form. Again, these two additional
taxes may create problems for your 2010 Vancouver rental accommodation
profit and return.
Primary Residence Exemption Problems Associated
with Rent 2010 Rental Homes
If you currently own your home and it is considered to be your
primary residence, you should make note that renting your furnished
2010 rental home may cause problems with claiming your home as
a primary residence. In addition to the 2010 rental income that
you must report to CRA for your personal income taxes at the beginning
of 2011, make sure that you are still eligible for the primary
residence exemption (PRE). The calculation is as follows for exemption
of taxes: gain x (number of years designated as your primary residence
+ 1 / total number of years of ownership). In some instances,
renting your furnished 2010 Vancouver Olympic rental accommodation
may have profound influence on whether or not you can actually
claim the primary residence exemption on the total gain once you
sell later on in the future.
How Competitive Do You Think Homeowners Will
Be? There Will Be Plenty of Competition Issues for Advertising
and Finding The Best Tenants for Your Vancouver 2010 Rental
If you haven’t already heard, the talk around town, at work,
at the park and at shopping malls is renting your own home during
the Vancouver 2010 Olympics. Yes, you’ve heard of people
renting their small one bedroom condo for $20,000 for the month
of February 2010 or a home owner in West Vancouver renting their
furnished home for $50,000 for that same month. But in the end,
do you really know how many apartment suites, townhomes and homes
are on the 2010 furnished rental market? Remember that the Winter
Olympics are a world-class event, but really, does not compare
to the Summer Olympics. In addition, there will be plenty of competition
for advertising and marketing promotions for furnished 2010 Vancouver
rental accommodation from property managers and other 2010 Vancouver
property management companies. Remember that media, IOC and other
important visitors will NOT be renting from you. These organizations
and businesses already have affiliation with Vancouver 2010 rental
management companies and other IOC sponsored property managers
who take care of everything. So, how can you compete against these
other very well branded companies who offer a lot more all inclusive
services, added value amenities and the security of the booking,
when you are a one-off advertising on Craigslist? How do you expect
to get the maximum rental income when there are better alternatives
for 2010 Vancouver rental housing out there from more proven property
managers and companies? Also, in terms of location, most visitors
want to be in the heart of the action, meaning that if your home,
townhouse or rental 2010 apartment suite is more than 5 to 10km
away from a venue, good luck. Or, how can your self-managed bachelor
pad or rent 2010 furnished apartment complete an all-inclusive
cruise ship accommodation that provides all meals and services
for a package price that is probably less then what you are asking
for? Already confirmed for the Pier at North Vancouver’s
Lower Lonsdale and soon to be confirmed for the New Westminster
Quay, the moorage of these impressive cruise ships will bring
plenty more inventory into the fully serviced, all inclusive furnished
2010 rental accommodation available during the Vancouver Olympics.
With this sudden increase in rental inventory, do you not think
that will affect the asking price for a typical suite for rent?
In some instances as well, including the cruise ships and property
managed rental 2010 Vancouver accommodations, they are adding
event tickets, transportation, meal vouchers, house cleaning and
other services as part of the package. How are you going to compete?
After the 2010 Vancouver Olympics Issues for
Renting
Our question is, if you have a perfectly awesome tenant in your
rental property right now, why would you consider kicking them
out for a short-term gain? Finding great tenants is like finding
a needle in the hay stack, so if you’re getting good rental
income, positive cashflow and a low maintenance tenant, KEEP THEM!
Remember that the most important asset in your investment rental
property in Vancouver is your tenant, so if you lose them, it
will be your own fault! In addition, the tax implications between
a long-term tenant and a short-term rental are profound. If your
intention is to rent out your Vancouver rental home or property
to a tenant long term, you only pay taxes on 50% of the profit.
If you are looking to rent a furnished 2010 rental accommodation
short-term, 100% of your profit is taxable. That’s a HUGE
difference when you consider this profit is added to your total
income during the year, and it may bump you up into the higher
tax bracket. In addition, do you not think that a good long-term
tenant will treat your Vancouver rental home as their own home?
You will see that short-term renters, especially ones for the
Vancouver 2010 rental accommodations will create more hassle,
damages and theft, as that is the nature of the two types of tenants.
In addition, after February 2010, do you not think that there
will be thousands of visitors leaving the city after the Olympic
Games? With that, do you not think that these few thousands of
cookie-cutter condos and homes will be flooding the market seeking
new long-term local tenants? Do you really think that there will
be thousands of people looking for rental homes after the Olympics?
ABSOLUTELY NOT!
So in conclusion, do your due diligence, run your numbers
and calculate your actual return after taxes. Also factor in contingency
and damages, as well as your holiday during the time your furnished
2010 rental accommodation will be rented in addition to the time
off work you’re taking. If it is worth it, go for it. If
you have doubts, don’t!
|
VISIT
THE NEW VANCOUVER CONDO BUZZ BLOG
VANCOUVER 2010 GUIDES AND CHECKLISTS
THE BEST FURNISHED
2010 PARALYMPIC RENTALS & AFFORDABLE CONDOS FOR MARCH 2010
PURCHASE
OLYMPIC 2010 VANCOUVER TICKETS FOR SALE THROUGH VANOC
ARE YOU LOOKING
FOR A VANCOUVER 2010 RENTAL?
ARE YOU RENTING
YOUR HOME DURING THE 2010 OLYMPICS?
OTHER 2010 OLYMPIC INFO
|
