 Many people in Calgary feel that we pay too much in property taxes yet have limited understanding on how property tax is calculated by the city or what they can do to reduce their property tax.
1. What is property tax and how property tax is calculated? Property tax is the real estate tax calculated by the local municipalities and paid by homeowners. The property taxes are ad valorem, i.e., they are assessed based on the value of the property. They are are calculated using two figures—the tax rate and the market value of your property. 2. What is property tax revenue used for? Revenue generated from property tax is used for funding services such as law enforcement, fire departments, education, and others. Essentially, these funds are used towards the benefit of all the residents, but at an individual level, these taxes can be quite burdensome. As experienced rental property management professionals we can tell you that sometimes the assessed value of the property is too high and this can unnecessarily inflate your property tax bill. 3. Things to know about property assessment! If you think that your property tax is higher than it should be, it is a good idea to appeal with your city. The appeal process can take some time, but it isn’t overly complicated. Before making an appeal, you should make sure you know what date is your property assessment based on and whether the assessment value is fair compared to similar properties in the area. Start by taking to your mortgage brokers and real estate agent and seek their opinion. Most rental property management companies have a fair idea of what is a fair valuation of your company and whether an appeal can is worthwhile. You can also speak to your family and friends and if they agree that the assessment is high, you can make an appeal. Here are some pointers from our real estate investment experts that you must consider: 4. Is your property assessment fair? As noted earlier above, property taxes are the product of your property’s assessed value and the local tax rate. You cannot do anything about the tax rate, but you can certainly argue that your property has been over-assessed. Check your Calgary property assessment report. Please remember that this figure is an estimate of your property’s selling price and is based on property sales information from a specific assessment date. This means, if a similar property in your area sold for a lesser amount than your home’s assessed value around the assessment date, you may have grounds for appeal. 5. Check for errors in your Calgary property assessment? Municipalities or provincial agencies are responsible for carrying out the assessments in order to calculate the property tax. While not common, there is still room for errors. You must carefully check your assessment report and see if there are any factual errors or clear-cut mistakes. For example, if the report mentions that you have a bigger garage or front yard than there actually is, you can appeal the assessment. 6. Find comparable properties in the neighborhood The best way to strengthen your appeal and reduce your property tax bill is to find a comparable property in your area that was sold for less than your property’s assessed value during the assessment period. If you are able to demonstrate a significant difference (5% or more) between your home’s assessed value and the selling price on a couple of comparable properties, you have a strong case. For comparison, make sure you choose properties that are similar in size and the same quality as your home. 7. Prepare your case If your house is unique and stands out in the neighborhood, there are better chances that you will win appeal. The unique, feature-rich houses in upscale neighborhoods are more likely to get over-assessed. Otherwise, assessments are quite accurate. For example, if you have real estate in Calgary that's pricey and sought after neighborhood, but it is much smaller than other properties in the neighborhood, you might have a good chance at the appeal. When you decide to appeal an assessment to reduce your property tax, you may wonder what your chances are. If you are confident enough and have substantial evidence to prove that you have been over-assessed, your odds are pretty good. It has been seen that in Ontario, nearly 50 percent of those who filed an appeal against over-assessment succeeded in getting their valuations reduced. Property tax relief due to Covid 19 According to our real estate investment experts, many municipalities have extended the property tax payment deadlines and waived off penalties and interest on delayed tax payments. You may check your local municipality’s website to find out about the Covid 19 relief measures being offered. If you need any help with buying, renting or managing your property, please do not hesitate to get in touch with your preferred Calgary Realtors or property management company in Calgary. ---------------------------------------------------------------------------------------------------------------------------------------------- LEASEWELL property services is one of the best property management companies in Calgary. We help landlords with property management of their rental property in Calgary more profitably and hassle free way. Let us help you market your rental property to match with great tenants and keep your rental in top shape to maximize return on your rental property investment. For more please visit our website www.leasewell.ca or contact us at info@leasewell.ca  How to Own Real Estate In Calgary
Real estate investments can be a great source of income as well as a solid way to diversify your assets. For the past few years, Canada’s real estate market has been booming and promising great returns. However, real estate investment requires careful research and planning. You need to get a good understanding of mortgages, loans, interest rates, tenant laws and other factors that can affect your in real estate investment in Calgary. There are several ways to invest in Canadian real estate, and each approach has its own level of risks and returns. So, due diligence is necessary to make a sound investment decision. According to experts at our rental property management company, the best ways to own Canadian real estate investments are: Investment in principal residence This is probably the most common and important method of investing in Calgary's real estate. When you purchase your principal residence you don’t just buy a place to live in, you also make a long-term investment because over the time, your wealth grows. Moreover, you are allowed tax exemption from the profits that you earn from selling your principal residence. This exemption can prove very helpful from the point of view of real estate investment. When you sell any property, you have to pay capital gains tax on half the profit you have made from selling the property. However, this is not the case when you sell your principal residence. 1. Investing in Rental Property in Calgary Buy and hold is a time-tested strategy used by landlords and in Calgary's real estate market. Purchasing a residential property and renting it out is a great way to generate income from your real estate. You can buy a single-family home and rent it out to a family, or you can buy a multi-family home and rent out a part of it. If you have another principal residence, you can rent out all units of your multi-family home. The rental income can cover the mortgage cost and you can earn profits as well. Over the years, depending on how long you hold the property, the property value can appreciate significantly. It should be kept in mind that managing rental properties can be very demanding. It is a good idea to seek services of a professional rental property management company that can deal with tenants and look after your property. Investment in commercial real estate Investment in commercial real estate such as office buildings or shopping complexes is not very common among individual investors. By investing in commercial real estate, owners can earn significant income through rent. In fact, earning potential is much higher for a commercial property compared to a residential property. It must be noted that investment in commercial real estate can require huge capital expenditure and the management can also be quite complex. That’s the reason why few individuals prefer to invest in commercial real estate. 2. Investing in Vacation Property While most of you may consider a vacation home as a place you will buy for pleasure. A place you can visit to relax and rejuvenate. However, a vacation property can be a great investment as well. The idea is to purchase a vacation property in a high-demand area and generate good rental income from it. Again, managing a vacation property can be a demanding task especially if you do not live in the same city. In this case, it is best to trust services of a good rental property management company. 3. Flipping Properties Flipping houses involves purchasing a property, renovating it, and then selling it at a higher price for a profit. Basically, property flippers buy homes that most buyers are not willing or able to renovate. They improve these properties to the point where people will be ready to buy them. Investors in this trade mostly make profits by buying under valued real estate, increase value of these properties by property updates and additions and reselling the property in short time to unlock the value. The profits on these flipped properties can be up to 20% - 25% or even higher ROI. If done right, flipping real estate can help you earn a substantial return over a relatively shorter period of time. It is a great method of real estate investment but involves a lot of work. If you don’t do enough research before you decide to flip a house, you may end up losing a lot of money. Once you choose a property to flip, you must consult a real estate investment expert or your Calgary realtor to ensure that you will be able to sell the property at the amount you are looking for. You must go ahead only if you are able to sell it at a price where you can recover your repair costs and still earn a handsome profit. If not, the investment is not worthwhile. Risks in Real Estate Flipping You can’t just buy any property that needs fixing up. Your best bet would be a property that needs only cosmetic changes and not structural repairs such as roofing or foundation repairs. Also depending on the local Calgary real estate market it can also be quite risky proposition so tread with caution. If you are looking to invest in real estate in Calgary, it is best to have experienced real estate investment expert or local Calgary realtor guiding you. They will help identify the right properties to invest in and make sure you get a good deal on them. ---------------------------------------------------------------------------------------------------------------------------------------------- LEASEWELL property services is one of the best property management companies in Calgary. We help landlords with property management of their rental property in Calgary more profitably and hassle free way. Let us help you market your rental property to match with great tenants and keep your rental in top shape to maximize return on your rental property investment. For more please visit our website www.leasewell.ca or contact us at info@leasewell.ca  Tax Deductions for Real Estate Investors in 2021
Real estate investment is a great way to diversify your investment portfolio. You can utilize the property for rental income or just hold it till the time its value increases considerably. Real estate investors, who own a rental property can claim a variety of tax deductions. Apart from deducting their rental expenses against their rental income, they can also claim Capital Cost Allowance (CCA) or depreciation.It is important that the investors keep receipts and invoices in order to maximize the tax deductions. Some of the tax deductions a real estate investor can avail are: 1. Current and Capital Expenses The amount you spend on maintaining the property are called the current expenses. These expenses can be deducted in full. Any money spent to restore the property to its original condition, which may include repainting, landscaping or paving a driveway can be deducted in full. The expenses which have lasting effect spanning years such as new windows or a new roof are called capital expenses. These expenditures enhance the value of property and has to the added to the property value. The investor can claim a capital cost allowance on them. So, expenditure on new windows can be added to the property value and depreciated in time. 2. Home Insurance The property insurance premiums that you pay towards coverage of your real estate investment can be deducted. You can claim the full amount on your tax return as long as the property is not your principal residence. Even if you have multiple properties, which are used for rental income only, the home insurance of all these rental properties is tax-deductible. 3. Interest and Bank Charges You may deduct interest on money you borrow for purchasing or improving the property. You cannot claim a deduction on the principal amount. You can also You can also deduct interest charges you paid to your tenants on rental deposits. Moreover, you can deduct the fees when you get a loan or mortgage to buy or improve your rental property. These fees include mortgage guarantee fees, mortgage applications, processing, appraisals, and insurance fees; mortgage brokerage fees and legal fees related to mortgage financing. 4. Renovation & Home Improvements In case your have borrowed funds to finance improvements to your rental property, you can only claim a tax deduction for soft costs. These include funds borrowed for construction, upgrades and renovations to the rental property to make it more suitable. 5. Property Taxes Property taxes are calculated using the assessed value of your property and the property tax rate of your region or municipality. You can deduct property taxes paid (only the portion that relates to your rental property) in the current year. Find out how property tax is calculated and Canadian cities with highest and lowest property taxes! 6. Utilities If you rent out your full property, you can claim the full amount you spent on utilities. If you pay for heat, water, cable or hydro in your rental property, you can deduct the expenses in your tax return. 7. Depreciation It is a good idea to depreciate your appliances and the like as they you may have to replace them at some point in future. If you have recently installed new fixtures and fittings in your old property, you may be able to get significant depreciation benefits. 8. Office Expenses You can deduct expenses such as pens, papers, stationery and the like. However, you cannot claim capital expenses such as furniture, computers, printers etc. 9. Repairs and Maintenance Cost for repairs carried out in your rental property including the labor costs can be deducted. Again, you can deduct only the current expenses that help restore the property to its original condition. 10. Professional Fees All professional fees such as legal fees, accountant fees, property inspections, appraisals can be deducted. 11. Travel If you incur any expenses for travelling to your rental property for maintaining the property or collecting rent, you can deduct the travel expenses. If you travel by your vehicle, you can either use the mileage rate or calculate all the expenses incurred, such as gas, repair, and maintenance. You can also deduct other expenses such as tolls, parking fees, interest on your car loan, license costs, applicable registration fees, and other similar costs. 12. Salaries Any amount paid to the employees can be deducted, but you cannot deduct a salary for yourself. 13. Rental Property Management Fees The fees that you pay to your rental property management company are all tax deductible. Any amount paid to the realtor can also be deducted. 14. Real Estate Advertising If you advertise your rental property in newspapers, magazines, rental websites, or other similar places, you can claim a tax deduction for all the fees you paid for it. You can claim all the advertising expenses because all of them are directly related to your rental property. If you need any more information on getting the most from your real estate investment, get in touch with the experts at your local rental property management company or contact us!. ---------------------------------------------------------------------------------------------------------------------------------------------- LEASEWELL is a premier property services company in Calgary. We help landlords with property management of their rental property more profitably and hassle free way. Let us help you market your rental property to match with great tenants and keep your rental in top shape to maximize return on your rental property investment. For more please visit our website www.leasewell.ca or contact us at info@leasewell.ca  How To Invest in Calgary Real Estate For Better Returns? One of the best investments you can make nowadays is definitely in real estate. With the right vision and ideas, you will be able to take things to the next level and make better returns from investing in Calgary real estate market buying income generating rental properties. If you are first time home buyer with smaller budget, investing in a condo and apartments can be an option. The idea is to know how to do it, when to invest and what cautions you need to have in mind selecting a rental property in Calgary's real estate market. Question: Is Investing in Real Estate A Good Idea? The reason is simple, real estate is one of the few industries where prices mostly go up in long term because it is a tangible asset that appreciates over time. You will notice that in most major Canadian cities be it Toronto, Vancouver or even pockets of Calgary, single family homes, townhomes, condos and apartments prices have appreciated year over year. On top of that, rental property in Calgary or in any other markets can provide you steady cash flow income while you provide a shelter to someone or a family. Even after global pandemic last year, the prices of real estate in Canada overall have largely gone up. It’s the best way for you to make money in the long term, and the return on investment considering its stability, can be great. Must Do Your Homework! Yes, you still need to study the market and find the right investment opportunity, so you must do your own due diligence and be clear what you are looking for. Avoiding typical pitfalls such as buying in a cheap neighborhood that lags decent appreciation or rental rate, or ending with a property that has structural issues or just paying too much will be a great starting point to steer clear of. End of the day, the property must check all the tick boxes to be a good fit for an income producing rental property and something that also appreciates in long ter. Real Estate Investment Tips Here are top 10 tips to help you start on the right footing when you are ready to invest in Calgary real estate for income producing rental properties for better returns and lower risk. Working with an experienced Calgary realtor or a property management company in Calgary can make a great difference in ensuring your end goals are appropriately met. 1. Estimate Your Affordability It’s important to realize that rental property prices in Calgary real estate market can vary quite a bit depending on type, location and proximity to amenities. Study your credit rating, savings for down payment and additional costs that can increase overall your investment property costs. Some of the costs element to consider can be registration, brokerage, stamp duty, advocate fees, administration charges, even loan processing fees. All of these can add up when you buy an investment or rental property in Calgary. That’s why you want to pay attention and prevent any problems shooting over your basic budget. That can make a huge difference over all in terms of profitability and actual returns you get from investment property. You can check your mortgage affordability using this nifty Mortgage Calculator!  2. Preparing for Mortgage Approval Having an above average credit score is very important for real estate buyers especially if you are looking for an investment or rental property. It will make it easier for you to acquire the adequate mortgage amount but also at a competitive market rates. Lenders will require a multitude of documents, like identity and address proof, a statement of assets, bank statements for the past year or less, income tax return, salary slips and others. Every lender might require different documents, but these are the most common ones. A good rule of thumb for real estate investing is to have a home loan eligibility letter from the lender. This way you know they will support your quest to find a good rental property, Condo and Apartments or another single family home. 3. How to Pick Best Investment Property? Ideally, you want to take a lot of things into consideration. First, the property has to be in a great location, it offers transportation nearby, and the location should be close to hospitals, markets and any amenities you may need. The type of house, layout, parking, number of bedrooms and whether it’s new or used is also very important. Aside from these, you also want to check for security, outside condition, gardening, extension capabilities and communication systems. Any experienced Calgary realtor or property management company professional will tell you to look for these things, and they can be very important! 4. What to Look For in New Condo and Apartments? Many people depending on their risk profile and net worth like to invest in new condo and apartment projects that can offer a great return in shorter period of time especially in a rising real estate market. If you are considering this option, you want to see the booking amount for rental properties, how much you need to deposit and if you can get a pre-approved loan. The Property Management company can assist you with that. Since this is still being built sometimes, you want to know the completion timeline and if there is any withdrawal clause. Ideally, you want to have a warranty system in place, just to be safe and ensure it’s all working the way you expect. You can also work with a property management company if you want to avoid any possible issues and challenges. 5. Study the Builder Reputation & Record! When you’re having a new home, condo and Apartments or anything similar built, you obviously want the best of the best to work on it. Studying some builder reviews online can give some insight into the matter. You should also talk with multiple builders regarding the completion timeline, expected construction quality, interior design, fittings used and so on for your rental properties. Once you have this information, it will be a lot easier to assess everything and ensure that it all works as expected. 6. Consideration For A Sub Urban Investment Property? If you want to invest in income generating rental property in Calgary real estate market for long term, value for money and appreciation potential is very important. Buying at the outskirts of the city might not seem appealing at first, but at the rate cities are expanding, that might become the hottest investment location for rental properties. Some nearby Calgary suburbs with great long term growth potentials to be considered can be; Okotoks, Airdrei, Cochrane and Chestermere. It’s important to become a visionary and think ahead, especially when it comes to rental properties. Then the potential can be incredible every time.  7. Booking A Pre Launch Investment Property
The reason you want to do that is because you will have a 10 to 25% discount upon purchase. Booking early does have its benefits. That’s why you should always be on the lookout for newly announced constructions. This can be a goldmine, especially if you want to invest in multiple properties. Using a Property Management company can also come in handy, so keep that in mind! 8. Look for Right Size Properties You don’t need to invest in large rental properties to make a profit. It makes a lot more sense to invest in smaller properties. Rental properties book faster if they are smaller. Plus, smaller apartments and homes sell faster because they are more affordable. There are other advantages, like having less money locked in a property, liquidation is quicker, and you have a larger buyer range. That makes selling the property a lot easier, when you decide it’s time to get rid of it. Plus, Property Management companies will charge you less for a smaller property! 9. How A Realtor or Property Management Company Can Help? There are some things you want to ask your property agent. For example, you want to know the occupation history of that property and who owns it right now. On top of that, you want to see if the property is new to the market or if it was there for a long time. Normally if a property sits for a while without no one buying it, something is wrong and it can be a red flag. Your Calgary realtor can provide you not just some of the top Don'ts but can also provide you vital market statistics to make a better decision. You should also be able to have direct contact with the seller's agent when you buy Condo and Apartments or any property for that matter to inquire and address all your questions. Similarly, working with a professional property management company or property leasing company like LeaseWell means they can help you with current rental market in Calgary in terms of what are the fair rental prices, vacancy rates and what kind of tenants you can target and what is the current vacancy fill lead time in your target community where you plan to buy your investment or rental property. More over many a time they can connect you with an experienced Calgary realtor specializing in investment property to with focus on meeting your investment or rental goals. This can be invaluable and save you not just thousands in savings but also avoiding costly mistakes in choosing the right property. 10. The Bottom Line These tips and tricks are very helpful if you want to start investing in rental properties, Condo and Apartments, homes or anything else. Yes, this is not easy, but it helps you bring in the results and value you are interested in. There will always be challenges as you try to find the right investment. But in the end, with enough trial and error, you will be able to make it work. Ideally, you want to start following our guidelines and ideas, then adapt and adjust based on your local situation and trends. One thing is certain, you should always consider investing in real estate, since it can bring in an amazing return on investment! ---------------------------------------------------------------------------------------------------------------------------------------------- LEASEWELL is a premier property services company in Calgary. We help landlords with management of their rental property more profitably and hassle free way. Let us help you market your rental property to match with great tenants and keep your rental in top shape to maximize return on your rental property investment. For more please visit our website www.leasewell.ca or contact us at info@leasewell.ca  How Tenant Eviction Process Works In Alberta LEASEWELL is a premier property services company in Calgary. We help landlords professionally market and manage of their rental property for more money and less hassle. We hold their hand through out the rental and property management process and keep their rental in top shape to maximize return on their rental property investment. One of the most important steps in rental process is to find great tenants and sign on a lease agreement for the rental property. Due to variety of reasons some time tenant and landlords find area of disagreement and either of the parties decide to start the eviction process. The eviction process can be started by either of the tenant and landlords based on applicable grounds. It is important for both the tenant and landlords to understand the process, the situations that can be ground to initiate this process and their respective rights in the process. For the benefit of both tenants and landlords, here we illustrate the process and details laid down in Alberta by the provincial government. The eviction process in summary Tenants must be served a written notice that states the reason for the eviction and the date the tenancy is to end. Tenants can dispute an eviction, unless it is for unpaid rent. If the tenant objects to the reason, the landlord must go to the Residential Tenancy Dispute Resolution Service (RTDRS) or court for an order terminating the tenancy and to get possession of the premises. Both parties can present their arguments to the RTDRS or Court. At any time, a landlord and tenant can agree between them to end the tenancy by a certain date and save the expense of taking the matter to RTDRS or Court. For more information, see the Residential Tenancies Act and Regulations. Reasons for eviction The most common reason for an eviction is when a tenant fails to pay rent. Tenants can’t withhold rent to force the landlord to do something, such as making repairs. The landlord is legally entitled to have the rent paid in full when it’s due. If the tenant cannot pay the rent and lets the landlord know beforehand, the landlord can let the tenant stay and pay rent later or over time. However, the landlord is under no obligation to do this. Other reasons for eviction include:
Types of notices There are 3 types of notices, and each one is used in a specific situation:
All notices must: • Be in writing • Be signed by the landlord or the landlord’s agent • State the rent due and any rent that becomes due during notice period • State the reasons for the eviction • State the time the tenancy ends All notices for unpaid rent must also include:
 Substantial breach If either the tenant or landlord does not fulfil the responsibilities in the residential tenancy agreement or under the Residential Tenancies Act, they may have committed a substantial breach. Substantial breach by tenant : A substantial breach by a tenant may result in an eviction, and includes if the tenant
A tenant must be given the notice at least 14 clear days before the tenancy is to end. This means the day the notice is given and the day the tenancy ends don’t count as part of the 14 days. Substantial breach by landlord Whether the tenancy is fixed term or periodic, a landlord may commit a substantial breach when:
Assault or threats If a tenant assaults or threatens to assault a landlord or another tenant, or does significant damage to the residential rental premises, the landlord can:
What if the tenant does not leave If a tenant has been given a 24-hour notice but does not move out, the landlord has 10 days after the tenancy ends to apply to the RTDRS or Court for an order that confirms the tenancy will end. If the landlord does not apply to court within 10 days, the notice is void and the tenancy hasn’t ended. Unauthorized occupants - If tenant lives on the premises
- If the tenant has moved out
Responding to notice - For Landlords; A 14-day notice is void if the landlord objects, in writing, within 7 days of receiving the tenant’s notice, as long as the order has been complied with or stayed. - For Tenant; If a tenant objects to the reasons stated for the eviction in a 14-day notice, they must:
If the tenant objects or doesn’t leave at the end of the 14 days, the landlord can apply to RTDRS or Court for a court order to terminate the tenancy and get possession of the rental premises. Until RTDRS or Court issues the order, the tenant may remain. Fore more details contact the Consumer Contact Centre can provide information on many topics related to landlords and tenants: Phone: 780-427-4088 and Toll free: 1-877-427-4088 | Source link: Alberta.Ca ---------------------------------------------------------------------------------------------------------------------------------------------- LEASEWELL is a premier property services company in Calgary. We help landlords with management of their rental property more profitably and hassle free way. Let us help you market your rental property to match with great tenants and keep your rental in top shape to maximize return on your rental property investment. For more please visit our website www.leasewell.ca or contact us at info@leasewell.ca |
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