With rental prices skyrocketing, it is the perfect time to have an income property in Vancouver. Having an income property in Vancouver, however, is not as simple as just buying a home or condo and renting it out. So what do you need to know before purchasing an income property?
What you need to know before purchasing an income property in Vancouver
1. Rental laws
It is important that you review the rental laws that govern your income property in Vancouver. These include laws related to the property, as well as those governing your rights and responsibilities as a landlord. To best protect yourself, consult with a real estate lawyer to review all relevant laws before you purchase an income property.
2. Regulations around short-term rentals
This is especially important now as there are a number of new regulations governing short-term rentals, including Airbnbs. Make sure you review all regulations for the type of rental you will be running – bed and breakfast, short-term, long-term. Ensure you are willing to follow all these regulations as, if you do not, you could face fines.
3. Business licenses
It is also important to look into whether or not you will need a business license for your income property in Vancouver. With the new Airbnb regulations, you will need a license for short-term rentals, even those under 30 days. Luckily, if this is the only type of rental you plan to take, the license will cost you just a one-time $54 activation fee and a $49 annual fee.
4. Costs of legalizing a secondary suite
Before purchasing an income property in Vancouver, it is vital to know if there is an illegal secondary suite in the home. If so, make sure that you are aware of the costs of legalizing a secondary suite. This is a significant burden to take on, so it should not be done lightly.
5. Projected income
Of course, one of the most important things to consider before buying an income property in Vancouver is the income itself. Not sure how to calculate a projected income? At Flipside Homes, we can help you with these calculations.
The guiding principle to remember when purchasing an income property in Vancouver…
While all the material we have covered thus far is significant, there is one guiding principle we tell all our clients to keep in mind when purchasing an income property in Vancouver… Keep in mind that this property in a business. Bring the same dedication you would to any other business to purchasing and running your income property.
Need more information about income property in Vancouver before making a purchase? Book an appointment with us today to discuss your options and how best to move forward.