Rental Management Services and the PST

Rental Management Services and the PST

The BC Provincial government in February presented its budget for the coming year. One of the major concerns for business in the budget is the PST ( Provincial Sales Tax). In the budget the government has removed PST exemptions from many sectors and services in the economy including, accounting, book keeping and commercial real estate services.  

Currently rental management services are exempt from charging PST on their services. Effective October 1, 2026 the exemptions including commercial real estate services begin. It appears they are continuing the exemption on residential real estate services including our rental management services.

Another area they are changing is the speculation tax rate for foreign owners up from 3% to 4% for the 2027 year. The speculation tax is owed on properties that are vacant for six or more months in the calendar year. The current rental market has more supply than renters which is leading to longer times to locate new tenants for vacant properties. We anticipate many owners may be subject to the speculation tax in the next few years unless the market changes. 

Need help managing your investment properties. Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com