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Understanding Non-Resident Taxes and the Benefits of Property Management

It’s no secret that when it comes to paying taxes in Canada, things can get complicated fast. It can be difficult enough for a Canadian citizen to navigate the taxes they owe each year, let alone for foreign non-residents. The worst part? If you’re a non-resident and don’t provide the Canada Revenue Association (“CRA”) with what it requires come tax season, you can incur heavy fines and penalties. 

Fortunately, the property rental and management professionals at Emerald Management & Realty Ltd. have the necessary expertise to help non-residents of Canada assist with the withholding and remittances required for properties managed in Calgary and surrounding areas. 

To that end, let’s take a look at what non-resident taxes are, what you need to know about them as a non-resident of Canada, and why you should consider purchasing investment property.

An Introduction to Non-Resident Taxes

Before we talk about non-resident taxes, let’s quickly define what non-residency status is. For all intents and purposes, you can consider yourself a non-resident for tax purposes if you aren’t a government-recognized Canadian citizen or live in another country during the tax year. 

If you are certain that your residency status is that of a Canadian non-resident, then you owe non-resident taxes called Part XIII tax or Part I tax. In short, this means that you are responsible for filing these taxes on whatever income you make from business done in Canada. Depending on the kind of income that you receive, your tax obligations, like the type of tax you file, may vary.

It can be incredibly time-consuming to understand which types of income in Canada are subject to which non-resident tax. Investment property owners often opt to engage the services of a property management company or appoint a local agent to collect and submit withholding tax from their rental property. 

We highly recommend that you consult the expertise of your tax specialist in collaboration with a qualified property management companies such as Emerald Management & Realty Ltd. to make sure you understand your tax obligations and which sources of your income are taxable.  While we do not file your taxes for you, your accountant or tax specialist that prepares your annual Canadian tax returns may also be able to assist you assess additional concerns and potential benefits tied to your non-resident status.

Answering Common Questions About Non-Resident Taxes

There is a lot of information to digest about tax obligations that apply to Canadian non-residents, to say the least. We’ve compiled a short list of the most frequently asked questions we receive when it comes to understanding and paying non-resident taxes in Canada.

  • Am I considered a Canadian non-resident? For tax purposes, you should consider yourself a non-resident in Canada if you live in a different country for the majority (more than 183 days) of the government-recognized tax year.
  • What are the types of non-resident taxes? Tax obligations for Canadian non-residents are the Part XIII tax and Part I tax on income from business done in the country.  This includes income earned from revenue properties such as investment rentals.
  • Do I need to file an income tax return? Generally speaking, non-residents in Canada pay tax returns on Canadian income if they need to claim a refund or are obligated to pay a Part XIII or Part I tax.
  • Is there a deadline for submitting my non-resident taxes? The tax return date in Canada is April 30 of the year after the tax year, or June 15 of the year after the tax year for non-residents with a spouse performing business in Canada.  Your return must be filed by June 30th of the following year.  As the Owner, you are responsible to make sure the proper return is filed and for any assessments by CRA.

  • How much do I have to pay or withhold?  In accordance with CRA’s guidelines as of May 2021.  Once your property is rented, Emerald Management & Realty Ltd. as your agent, would withhold and remit 25% of the Owner’s gross rental income to CRA.
  • How is a T4 different from a NR4 statement?  A NR4 statement is similar to a T4, but it is a statement of rental income for a non-resident.

How do I protect myself as a non-resident or foreign resident?

  • Consult with our team at Emerald Management & Realty Ltd. and your account and/or tax specialist to determine if non-resident taxation applies to you.  
  • Check and go direct to the source.  Visit CRA’s website for more information and contact them with any questions or concerns.
  • Take steps to collect the required documentation and review it with your accountant or tax specialist prior to submission
  • Ensure that you complete the remittance of NR4 tax on time to avoid penalty or further complications

Benefits of Property Management

It is worth understanding the benefits of owning property if you’re considering purchasing real estate for yourself. At Emerald Management & Realty, we help our clients realize the biggest benefits and profit from our experience that comes with our property management services such as:

  • Peace of mind for yourself and the management of your tenant
  • Licensed property management brokerage that can support you with the preparation and remittance of NR4 filings to the CRA
  • Timely rent collection
  • Lower vacancy rates
  • Fewer potential turnovers resulting from professional tenant screening
  • Smaller chance of legal problems
  • Property emergency support 24 hours a day, seven days a week
  • Preventative maintenance programs to preserve and improve on the equity of your rental property investment

If you’re considering how property management services may be right for your real estate needs, then you’ve come to the right place. The professionals at Emerald Management & Realty make it simpler for non-residents to enhance their property investments and maximize profitability.   For more information on how we can help and our cost for NR4 support, contact our team today!

Make your property work for you by getting in touch with our experienced, friendly team today on our website or by calling us at 403-237-8600


Evicting a Tenant for Non-Payment of Rent

For an investor buying a rental property, it’s not unusual that now and then, there will be some issues with a tenant.

While good property management can help mitigate or prevent potential problems. real estate investment in never trouble-free. One of the most common complaints is that some tenants are always late with their rent and then they finally stop paying.

Evictions are usually the last resort — but if you do have to take that route, this article will provide more background about the process involved.

Most common reasons for evicting a tenant

Evicting a tenant is usually the chosen route for the following reasons:

  • Non-payment of rent
  • Breaching other terms of the rental agreement
  • Damaging the rental property
  • Repeatedly disturbing or endangering others in the property

Remedies for a breach of the rental agreement

If the tenant breaches the rental agreement, a landlord can terminate the tenancy by:

  • Giving the tenant a 14 day notice to vacate; or
  • A 24-hour notice (for causing significant damage, assault or threatening the landlord or another tenant)
  • Applying to the Residential Tenancy Dispute Resolution Service (“RTDRS”) or Court of Queen’s Bench for an Order to Vacate

14-Day Eviction Notice for unpaid rent

To seek an eviction for a tenant’s failure to pay rent, the 14-Day Notice of Eviction must be properly served — and, in order for it to be enforced, it must: 

  • Be in writing and show the date of service
  • Specify the address of the property
  • Include the amount of rent that is owed at the due date (or when the notice is given)
  • Provide the reason for the termination
  • Include the date and time the tenancy is due to end
  • Be served by the landlord or property manager;
  • Include a statement that says that the tenancy will not be terminated if the tenant pays all rent due on or before the termination date specified

If the tenant won’t leave

If the tenant doesn’t pay after the 14-Day Notice has been served or if the objective is to terminate the relationship with a tenant sooner than later, it’s best to make an application to the Court of the Queen’s Bench or contact the RTDRS to arrange a court hearing.

 The costs involved:

  • Filing for a hearing with the RTDRS
  • Registering the Order with the Court of the Queen’s Bench
  • Hiring a bailiff if the tenant doesn’t move out even after getting an Order
  • Hiring a full service eviction company or lawyer
  • Seizing, storing and/or selling assets left behind by the tenant

If the tenant fails to comply with the Eviction Order, it’s possible to apply for a Writ of Possession.  A bailiff is engaged to help recover the property, allowing you to legally change the locks and possibly have the police charge the tenants with trespassing.

It’s wise to keep all records and documentation on-hand, as these may be needed for the Court.  Documentation helps to demonstrate the actions you took to correct the situation, how many times you spoke with the tenant about the outstanding rent, expenses you may have incurred and it also provides a record of any possible damage to the property.

If you need help with matters relating to eviction of tenants

At Emerald Management & Realty, our team of property management professionals has lengthy experience working on eviction cases and can work on the paperwork and communications and collaboration with other professionals to assist with the eviction of tenants before, during and after court eviction dates. 

If you have any questions or are looking for assistance in matters relating to tenant evictions, we’re here to help. Call us at 403-237-8600 or fill out our contact form and we’ll be in touch as soon as possible.


A Beginner’s Guide to Condo Board Member Responsibilities

The purpose of board meetings is for the directors to talk about any issues that the Corporation is facing.

A board is a collection of individuals or board members who represent the interests of all owners in a community or in the co-habited building they occupy.  There are a variety of boards involved in and that relate to ownership and property management of real estate assets.  Two of the most well-known boards are the Home Owners Associations (HOA) and Condominium Boards.

The fundamental goal of board members and the collective decisions they make is to serve the corporation and the members which they represent.

Board member positions are elected by their peers (who are also owners in the Corporation), and their actions are governed by the Articles of Association (AoA) when it comes to HOAs and the Condominium Bylaws when it comes to Condo Boards.  These official documents are typically registered and specific to the property in question.

To make it easy to understand, we have summarized some key qualities, responsibilities, and duties of the board members in this article.

Read on to learn more! 

Key Qualities of Board Members

Some of the key qualities of a board member can be summarized as:

  • Having a deep interest in the equity and mission of the Condo Corporation and the property management of the condo community
  • Being dedicated and committed to fulfilling the Corporation’s goals
  • Possessing a genuine and respectful attitude toward colleagues, property management and community members and their views

Overview of the Board’s Duties

Whether an HOA or Condo Board, the duties of those occupying board member positions include:

  • Establishing the organization’s objectives and goals
  • Organizational planning
  • Monitoring and managing financial resources
  • Assessing and developing skills of the property managers and board members
  • Serving on various committees
  • Recruiting new board members as required
  • Promoting the organization or Corporation

 Responsibilities and Duties of the Board Members

There are various positions on an HoA or Condo Board, with the main ones being:

  • President: The president leads the board and is responsible for overseeing and handling many of its procedural duties. It can help to see them similar to an Executive Officer of the board.

As with any executive officer, the president is responsible for running meetings, establishing the agenda, and executing contracts and other legal documents pertaining to the community or property. understand how to run an effective meeting. 

  • Vice President: The main role of a vice president (VP) is to act as a substitute for the president should they be unavailable for whatever reason. 

The VP must oversee the rest of the board or association to ensure it continues to run smoothly as well as presiding over annual or board meetings as required.

The VP also needs to follow the president’s directives and carry out any tasks assigned to them, plus serve as the liaison for one or more HoA or Condo Board committees.

  • Secretary: The secretary is responsible for:
    • Recording the minutes of all meetings of the board of directors
    • Maintaining records of committee meetings
    • Updating and maintaining membership lists
    • Providing for the safekeeping of all official contracts and records of the organization
    • Maintaining and updating bylaws and arranging distribution of notices of scheduled meetings
  • Treasurer: The treasurer acts as the financial manager for the board and is responsible for funds and maintaining all financial records. This may be billing and collections or disbursement of funds.

Along with that, they are also responsible for:

    • Overseeing the organization’s financial administration
    • Reviewing and enforcing financial policies and procedures
    • Creating and monitoring the budget and generate financial reports
    • Advising on financial strategy and fundraising
  • Community Manager: The community or property manager is responsible for the management and support of the community including daily operations, regular interaction with and support of the Board of Directors and homeowners/ or vendors, attending neighbourhood meetings, etc.

They are also responsible for managing and handling communications from both sides (i.e., from owners and the board) and supervising the social media, events, and content creation.

* Often the administration of many of the duties highlighted above, are delegated to the Property Manager or Property Management Company in the terms in the Condominium Management Agreement.  The Board directs and the property manager, manages.

 Can We Help With Matters Relating to Your Board Members?

While attending and being engaged at board meetings is a key part of a director’s job, but it can also prove challenging to make them effective and enjoyable.  If you are a board member looking for support to manage time over runs, lack of focus and support with agendas, our team at Emerald Management & Realty Ltd. can help! 

If you are looking for assistance regarding any aspect of property management, including issues related to condo board members, why not give us, at Emerald Management & Realty, a call today?

Talk to us at 403-237-8600 or contact us through our website. We’ll be pleased to assist you in with your condominium management goals!


Emerald Management Pandemic Update

 

April 2021

COVID19 Update: A Year in Review

It has been just over a year since the COVID19 pandemic dramatically changed the way most of us live and work.  Every business sector has felt the impact in one way or another, and we recognize that everyone has sacrificed and suffered at some level. That being said, there is also a lot to be proud of in the way each one of use has faced and responded to this worldwide crisis. We have experienced some remarkable change, resilience and innovation by coming together to help respond to this global crisis.

In the face of the 3rd wave of COVID19 infections and growing uncertainty due to the identification of numerous variants of concern, we continue to monitor the economy carefully. We continue to adapt our service offerings to provide service and help with the safety of our team members and customers.

With safety top of mind and uncertainty of changing government restrictions, we continue to look for opportunities to maintain stability and adapt as needed to improve our processes. Our goal is to improve customer service and minimize disruptions experienced by our customers and residents.

The following are some examples of what Emerald Management & Realty Ltd. has done to respond, adjust and evolve processes and practices in response to COVID19:

  • Essential Service Provider – As we were deemed to be essential services, we responded immediately to modify operations with the implementation of personal protection equipment (“PPE”), social distancing, plexiglas partitions, and restrictions on who and how many could enter our office.  At the same time, we responded with increased cleaning protocols and worked with the support of our valued trades and vendors to implement the necessary changes and signage for apartment and condominium buildings.
  • Communication – At the beginning of the pandemic, the majority of our team worked remotely. While we were fortunate to be designated an essential service and work from our head office on rotation, our team pushed forward to create more online functionality and improve paperless practices.  Some of the innovative communication improvements implemented include:
    • Virtual Meetings – Our team quickly adjusted from being in-person to being much more virtual.  Sometimes we have had to meet in person or organize a meeting to address concerns as a better way to work through an issue. Where needed health and safety protocols were implemented for the safety of all involved.
    • Regular Covid Updates — The imposed government rules and restrictions have changed and continue to change. We have used our website as a tool to update our property management community and provide information to help others know where to go for reliable help if an issue was outside of our suite of services or expertise.  We continue to meet weekly with departments, send out regular information emails plus blog updates on what is happening in our community.
    • Available 24 hours a day 7 days a week — Our team continued to be available to respond to emergencies and use our regular reporting practices to keep our clients informed. In accordance with government restrictions, our office was open to help tenants, condo owners and condominium board members. We updated our online contact forms across all platforms and enabled a text chat function on our website at www.emeraldmanagement.com.
    • Online Functionality – In addition to the above, we improved our online application processes and lease signing. We also increased our use of Facebook, Instagram and LinkedIn to remain connected with our communities and be responsive on the various platforms.  This not only helped to foster creativity and some fun, but provided another way to communicate, connect and monitor the needs of our property management industry and our residents.

  • Workplace Health & Safety Management — Systems along with health and safety programs, protocols, procedures and manuals were reviewed and updated. This has been done on a continual basis to stay current with the ever-changing work environment this past year.   Signage has been posted at rental properties and condominium communities in accordance with bylaw requirements and property management regulatory requirements.
  • Customer ServiceCustomer service remains a top priority. The pandemic has reminded us of the importance of kindness and taking a moment to check-in with each other. People are on edge and a little kindness goes a long way in working together.  Firstly, we helped to source resources to help tenants and condo owners  access sources for help regarding rental payments, payment of condominium fees. Where able, we assisted with payment plans, where to go for income, food and mental health supports.

Secondly, since property management is and has been face-to-face or in-person, Emerald has continued to provide personal service as much and whenever possible and permitted. For instance, they say, “Smile, it is free therapy”.  We have seen the positive impact of a thank you or a kind check-in with out team from vendors and customers.  

Lastly, our team also found a way to safely continue with our annual warm winter clothing drive in support of Project Warmth Society.  The opportunity to make a difference and support of community in dropping of clothing was greatly appreciated. 

  • Leasing – The pandemic has changed how we work with prospective tenants and the techniques used to market available apartments and homes for rent.  Prior to COVID19, we had already been doing online marketing and using virtual tour techniques when required. However, given the restrictions in place, our leasing team responded immediately to this challenge.  One of the amazing outcomes achieved was the ability to collaborate with current tenants on virtual showings. Leasing and marketing ramped up with the use of YouTube and FaceTime. At the same time, our leasing agents reignited basic sales techniques where face-to face interactions and accessibility was a challenge.

In-person tours also continued in accordance with safety and social distancing protocols in accordance with Alberta Health Services and supported by the Alberta Real Estate Association and the Real Estate Council of Alberta.

  • Maintenance: Early on, emergency work orders were prioritized for the protection of residents and the properties.  From there routine or regular maintenance was scheduled as a collaborated effort with our in-house maintenance team and residents to coordinate times where residents could be out of their homes or socially distanced.  Our in-house maintenance team was outfitted with protective gear and cleaning supplies for everyone’s safety, to maintain empathy, and for respectful management of fears and risk of transmission.

Our team is monitoring construction resources and supply chains to assist in the completion and prioritization of work moving forward.  Communication remains key as product availability can be uncertain with employee quarantines and infection outbreaks in the manufacturing sectors.

  • Education: We have continued our weekly team meetings and increased brainstorming and team building ways to improve service and learn about PPE requirements and safety protocols.  The Emerald Team has also looked for ways to have some fun at work and build connection.  At times, meetings and celebrations have been by zoom or over the phone – everyone’s input, creativity and support has been greatly appreciated. 

So … what have we learned?

We have learned that:

  • Simple things like: Washing your hands, Wearing masks and Staying 6 feet apart – can help prevent the spread of disease.
  • No matter how well we think we are prepared, sometimes life throws a curve ball and and you have to change course.
  • We are great at thinking outside the box to problem-solve and help each other.
  • We are innovative, creative and efficient when addressing emergency situations.
  • A small act of kindness and interacting in a human way can make a difference.

Our team at Emerald Management & Realty Ltd. remains optimistic that this pandemic will eventually end. In the meantime, as the economy cautiously opens we believe in many ways we will be better on the other side of this crisis. 

In conclusion, we are proud of our team and their dedication to ensuring that we provide the best possible service in the safest way to our property management clients in Calgary & Area.  Despite the anxieties, stress and fatigue that the pandemic has placed on many lives, our team has embraced new policies and practices with open minds and positivity.  Thank you for belief and supporting local small businesses in Calgary like us.

Stay safe. Stay well. Stay positive.

on behalf of the entire team at Emerald Management & Realty Ltd.

Jodena Rogers & Lauretta Enders

Emerald Management & Realty Ltd. is a family owned and operated Property Management Company based out of Calgary, AB. We have almost 50 years of experience in providing responsive asset management services to condominium, commercial and rental properties in Calgary & Area. Our ability to foster positive relationships based on mutual respect and communication has nurtured our commitment to the provision of management services congruent with our customer’s needs and goals.