This summer, Ottawa introduced a new policy aimed at increasing the local housing supply. The city council approved a residential vacant unit tax with hopes it will spur landlords to quickly rent out their units. Keep reading for our insight into the new policy.
What Is It?
This new policy, called the Vacant Property Bylaw, requires owners to obtain a license if a property (that is not their primary residence) has been unoccupied for 120 consecutive days. Anyone completing renovations on a property that is not their principal residence will be assessed the $1,507/year licensing fee.
How Does It Work?
The new bylaw applies to freehold residential properties (up to a sixplex) and commercial properties. If the vacancy period stretches past 184 days, the owner will receive a 2nd tax equal to 1% of the assessed value of the property. You can read more about the new policy on the Ottawa government website here.
Why Is It Imposed?
This policy is intended to increase the available housing supply for renters and take pressure off of Ottawa’s competitive real estate market.
If you own investment properties or are considering investing as a landlord, we’d be happy to discuss your plans and how the new bylaw may impact you.
Rachel Hammer Real Estate
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