Homeowners in Toronto have until the end of the month to declare if their property is occupied. After that, anyone sitting on a vacant unit will face a hefty fine as the city cracks down on absent investors.
The annual Vacant Home Tax, set at 1% of the property’s current value, will be levied on properties declared or deemed to be vacant, including those not occupied by tenants for six months of the previous year.
First considered by Toronto City Council in 2019, the measure is designed to free up more accommodation in the city as concerns grow over housing supply. As the declaration deadline looms, owners of vacant properties are now faced with a choice – do they pay the tax, sell, move into their unit or rent it out?
Why you should consider renting your vacant property
To earn rental income
By renting your vacant property, you’re not just dodging the tax, you can also turn it into a steady source of passive income. For many landlords, their rental is a great way to save for retirement or boost their finances as they explore other ventures. With Canada on the cusp of a recession, real estate is a solid investment to survive tough times.
To ride out the sales slump
Many owners of vacant properties are hanging on, waiting for the housing market to pick up so they can make a quick and lucrative sale. But with the Toronto Regional Real Estate Board forecasting a flat market for the foreseeable future, prospective sellers could be waiting well into 2024.
Renting while you wait ensures you avoid the Vacant Home Tax while maximizing returns on your property. And if you find trustworthy tenants, it could even help your home keep its value – homes that are occupied are less likely to fall into disrepair than vacant units.
To take advantage of Toronto’s hot rental market
There’s never been a better time to put a rental unit on the market. While housing prices remain flat, rents are higher than ever. Toronto is now the second most expensive rental market in Canada behind Vancouver, with the average rent for a one bedroom unit soaring to $2,551 in December.
Stress-free rentals with Highgate
Becoming a landlord can be intimidating, but dealing with tenants doesn’t have to be a headache. If you don’t have the time or energy to deal with tenant screening, maintenance, rent collection, let a professional property management firm handle it.
WIth over three decades in the business, Highgate Property Management is highly experienced at navigating the GTA rental market. Our talented team has helped hundreds of property owners find long-term, reliable tenants and turn their investment into a profitable income. Our full-service offering includes tenant vetting and screening, tenant management, property maintenance, repairs, and rent collection. We’ll even assist with legal guidance and financial reports if required.
And if you’re holding onto a property to sell it, we can let you know when the timing is right. As trusted and experienced realtors, we can advise you when to sell and when to sit tight while the market adjusts. When you are ready to make that move, our realtors will help you list your property and find the right buyer so you can get the maximum return on your investment.
Reach out to our team today to find out more about our services and how becoming a landlord can help you meet your financial goals.
