OUR WORK EXPLAINED
Property Sage has a very specific business that focuses on rental solutions for struggling property owners in Vancouver. If you own a house that you intend to demolish, is in need of major restoration or repairs, and you don’t want to pay the BC Speculation and Vancouver Vacancy Taxes, we’re your team.
Let’s say you’ve bought a house for the land value. The house is in a deteriorated condition. The carpets, appliances and fixtures are simply not fit for a tenant. This is typical of many older homes in Vancouver, which, until recently, could be left vacant without taxation.
Today, however, legislation requires for BC land owners to have properties rented for at least six months of the year, or they’re liable for the Vancouver Empty Homes Tax and the BC Speculation Tax. Why? Because Vancouver has a housing crisis (1% vacancy in 2019, with some areas as low as 0.5%).
The properties we’ve worked with are liable for between $15,000 – $45,000. The only way around it is to rent the property, or have your building permits in hand. Here lies the second problem – waits for building permits were around eight months or longer in 2019.
Our clients’ past concerns might be similar to yours:
- You don’t want to undertake, or pay for repairs for a tear-down home.
- You don’t want to search for, deal with tenants and shorter lease agreements.
- A Property Manager won’t take on your property in its current condition.
- You don’t want to pay BC Speculation or Vancouver Vacancy Tax.
- You are concerned about squatters or security risks surrounding the property.
- You don’t know when your building permits will come through.
As experienced Realtors and Property Managers, we’ve had a number of these conversations with owners in our community. We also saw a way to support so many professionals struggling to find housing in the city. That’s how Property Sage started, and quickly became Vancouver’s go-to empty homes solution provider. We have the local knowledge, the team and the highly specialized resources to make us the most holistic, hassle-free and effective solution to your problem, at no upfront cost to you.
WHAT WE DO:
We rent, restore and manage vacant or distressed properties directly from owners and developers. Our unique rental management system provides you with hassle-free revenue without charging any service fees or repair costs. We make our money from the rent we charge, and have developed a portfolio of properties that allows us to secure you some of that rental income on top of saving on the taxes.
All improvements, repairs and updates, as well as property management duties, are included in our rental solution. Essentially, Property Sage is your tenant, manager, and repairman, all baked into one.
THE BUSINESS TALK:
Step 1 – We lease the property directly “AS IS” from you on a fixed term lease benefiting your schedule (minimum six months, no maximum). We become your primary tenant and pay you an agreed-upon rent each month. Rent is typically reflective of market value less the condition of the property and length of the lease. We do a no-cost walk through of your property with you, to assess the best possible price for your property. We work on referrals – we will be honest with you about your property’s condition, needs, and the best prices we can offer you.
Step 2 – As your tenant, we assume the cost of repairs during the lease agreement. We typically invest anywhere from $5000-$15000 into a property, to ensure safe and comfortable living standards. We have a network of qualified, reliable tradespeople, who cut us exclusive deals due to the volume of business we send them. All the improvements we make are cosmetic and non-structural. This could include plumbing, electrical, interior/exterior updates, and furnishings. Any major repairs that are outside of our scope (i.e. City property and lines) will be discussed beforehand and must be agreed upon before we move forward.
We’re successful because we get repairs done quickly and efficiently. We’re local Vancouverites, and experienced in these kinds of projects. Some do it yourself owners will spend $5000-10,000 and 6-8 weeks to complete their repairs (not including the time to source the contractors, who can be tough to find in this city). We typically spend the same amount and get more, or reduce that cost and complete in 1-2 weeks.
We pride ourselves on quick turnarounds to maximize promoting the property to suitable subtenants. And we must say, we’re proud of the work we do – we’re able to help alleviate the local housing crisis, while providing innovative solutions to homeowners. Everybody wins.
Step 3 – After elevating the safety and market appeal of the home we sublease to screened and qualified subtenants on a fixed term lease, matching your timelines. Our sublease agreement is fully transparent and comprehensive, so that tenants are happy to move in and leave on the agreed date.
Step 4 – During the sublease we manage the day to day responsibilities of the property. There are no additional costs to you for repairs, tenant issues, appliance care. We are the subtenants’ direct contact, which allows us to maintain a great relationship with them and ensure your property is well cared for.
Step 5 – Once the fixed term sublease lease is complete the sub-tenant vacates the property. We return the property to you, minus our items that were used to fit and furnish for tenancy. We then hand you the keys and you can begin building your project exactly when planned.
“Are you running an Airbnb?”
No, in the city of Vancouver short term rentals are only permitted in your primary residence. We only offer long term rentals so owners can take advantage of the tax breaks.
“Who are your tenants?”
We rent the property to a single group. Typically, our tenants are young professionals who are thrilled to acquire well-presented housing. Once screened, we include them in our network of tenants and we can move them into another Property Sage home when their lease is up.
With our industry insights, experience, and network of tradespeople, we take the hassle out of your short-term problem and give you a solution that not only costs no money up front, it saves you on taxes and earns you rental income. We’re proud of that!
If you have a Vancouver property and you need tenants contact us for a free consultation. We’ll be happy to outline your options, without obligation – not every home needs us, and we’ll tell you if you don’t. By the end of the consultation you’ll feel confident about your next steps, or you’ll have found the best tenants you’ll ever have.
Aaron and Sage
Founders – Property Sage
Contact us for a consultation today.
[email protected] / 604 250 1876
Want to see more of the work we’ve been doing? Find us on Instagram: thepropertysage. Watch as we transform houses into safe liveable houses for Vancouverites!