If you’re the owner of residential rental property in the Greater Vancouver area then we can be of service to you. We offer full property management services to property owners on an ongoing basis for the long term. As a result many of our clients have been with us for more than ten years.
Our primary service is rent collection. We will act as a rental agent to collect your tenant’s rent, pay repair bills, mortgages, strata payments/condo fees, property taxes, non-resident taxes, and any other payments that you instruct us to make. As a provincially licensed real estate company we maintain a trust account for clients funds in strict compliance with the Real Estate Services Act of British Columbia. A condition of licensing is a yearly audit for the Real Estate Council of British Columbia.
We will send you monthly statements of account, including all bills that have been deducted from your account. We do not add any sort of surcharge to repair bills. At tax time we provide an annual statement of income and expense.
We can provide services to non-resident owners from around the globe. We currently manage property for clients from virtually every part of the world, including Africa, Asia, Europe, Australia and North America and South America. We transact business daily all over the world.
Non-resident investors who own Canadian rental property are required to send in 25% of gross income to the CRA each month. This status is an income tax status and is not an immigration or citizenship status. A Canadian citizen could be a non-resident for income tax purposes, as can a Permanent Resident or a citizen of a foreign country.
Compliance with the tax laws are simple, although not easy. Its very important to comply. If the property is sold in the future its very likely that the non-resident status will become obvious.
Sellers who have not complied with the law while owning the property will face many obstacles and penalties. The way to handle this is to have a Canadian agent sign an undertaking to file and remit taxes on behalf of the non-resident owner. Coronet Realty Ltd. will do this.
Non-residents pay 25% of their rental income in tax, and must remit this monthly, but if you make use of our service you pay 25% of net rather than 25% of gross. This makes a huge difference to cash flow. Without an agent the owner of a cash flow neutral property will be required to contribute a monthly top up of 25% of the gross income and see that it is remitted to the CRA.
They would not recover that expense until they filed a tax return the following year. A negative cash flow property puts the non-resident without an agent in an even worse position. With an agent the tax bite is reduced to 25% of net. The net income of a cash flow neutral or cash flow negative property is zero, and 25% of zero is zero, so all that is done is paperwork.
Want to find out more about property management, then visit Oswaldo Taggart’s site on how to choose the best rental agent for your needs.
