There are countless things to do when preparing for a big move out of the country and it can be more overwhelming if you have a rental property and tenants that you are leaving behind.
Here are 3 things landlords should do before moving out of Canada.
1. Hire a Reliable Property Management Company
This is certainly our number #1 advice when it comes to non-resident landlords. Sure, landlords can rely on family members or friends who are up for the task of watching over their property and tenants, however, choosing and hiring the right property management company can save on time, energy and prevent future issues from happening.
Here are a few reasons why hiring a property management company will be the best decision non-resident landlords can make:
- Designated team for emergency responses for repairs/maintenance
- Legal compliance – i.e, annual property inspections, fire and safety inspection and certification, etc.
- Canada Revenue Agency (CRA) compliance
2. Ensure Financial Arrangements are in Place with the CRA
There are legal filing and reporting requirements for non-residents who receive rental income from a property they own in Canada. It’s crucial for landlords to understand and report such requirements to the CRA’s in order to prevent future financial issues and fees for noncompliance.
We highly suggest referring to the CRA’s website or speaking with an accountant for more information and clarification of these tax obligations before relocating out of Canada.
At Manage Your Property, we specialize in non-resident clients and our accounting team provides exceptional support to ensure you are fulfilling and complying with government tax obligations. To find out more about our services for non-resident landlords.
For more information on non-resident tax filing make sure to contact us or visit the CRA website: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/rental-income-non-resident-tax.html
3. Establish Communication Plans
Responsive communication with your tenant is essential for maintaining a healthy landlord and tenant relationship. If you are planning to continue with managing your own property abroad, it’s important to provide your tenants with a clear communication plan. Update your tenants with your new phone number and any alternative ways to contact you.
We highly suggest designating a local contact for your tenants, in the case they are not able to reach you due to the time difference and/or other factors. This can be a family member or a hired property manager.
When in doubt…
A property management company ensures professional oversight for your rental property in your absence. It will allow you to have a peace of mind knowing your investment and your tenants are well taken care of even when you’re miles away. Our team at Manage Your Property Inc., will ensure you are checking off all your boxes with the CRA and maintaining healthy management practices such as annual inspections and fire and safety inspections.
Should you or a non-resident landlord you know need assistance or any advice, please feel free to get in touch with at Manage Your Property and we will be happy to support!
