Suites participating in the Rental Program are classified “Commercial” for property tax purposes. For information on Commercial property tax rate, please contact the City of Toronto: Property Taxes by calling 416-338-4829 or visit their website: http://www.toronto.ca/taxes/property_tax/tax_rates.htm
Will I receive revenue when my suite isn’t occupied by a hotel guest?
Yes. Monthly revenues are pooled based on the total number of suites available in the rental program and then allocated to each suite base on the suite’s Unit Factor, regardless of the number of days the suite is occupied by a hotel guest.
Will I receive revenue when I occupy my suite for personal use?
No. When the suite is occupied for personal use, the suite is removed from the rental program revenue pooling for the specific days of use.
Is there a fee to use my suite?
Yes. There is a Housekeeping Turnover Fee of $35.00 for 3 nights or less and $80.00 for 4 or more nights. This covers the cost of cleaning the suite and replenishing guest supplies. There is also a FF & E Reserve Fund Allocation Fee which ranges from $5 to $7 per night depending on the suite’s Unit Factor. The FF & E (Furniture, Fixtures & Equipment) Reserve Fund is a Capital Expense Reserve Fund maintained for the scheduled refurbishment of the rental program suites in order to maintain all suites to the Hotel’s Acceptable Standard.
How often can I use my suite and what are the restrictions?
The suite can be removed from the Rental Program for personal use up to a combined total of 180 days per year subject to availability. Availability is determined by the rental manager based on hotel reservation commitments and/or future forecasted occupancy for the period of the booking request and on blackout periods, such as Toronto International Film Festival, Caribana and any citywide conventions . A minimum of 10 days advance notice must be given for temporary usage. For long term usage, a minimum of 35 days advance notice is required.
Entering the hotel rental program is a very simple and seamless process. An Enrollment Application form can be completed and sent to the Owner Relations department. Once the application is received, the hotel operations team will inspect your suite free of charge to determine if the unit meets the Hotel’s Acceptable Standards. Should the suite require any painting, repairs, supplies or equipment to bring the suite up to the Hotel’s Acceptable standards, a quote will be provided. There is also a mandatory charge for pest control inspection and for deep cleaning of a suite prior to entering the hotel program.
All newly enrolled suites or suites that have been removed from the Rental Program for a period of time will be required to bring the unit’s contribution to the FF&E Reserve Fund up to date. FF&E contribution catch up payment options are available. For more information on entry into the Rental Program, click here to see the Rental Program Entry/Exit Rules.
How much is the monthly maintenance/condo fee?
The monthly maintenance/condo fee for 2014 is from $469 to $657, depending on the individual suite’s Unit Factor.
Can I use the facilities and services offered by the Hotel?
Yes. Owners not in residence are entitled to discounts on many Hotel services including food and the rental of hotel rooms and function spaces. Click here to see the Owner Discount Usage Policy. The use of pool and sauna facilities are restricted to those in residence.
How does the CRA treat earned income?
The CRA treats income earned as investment not rental income and therefore non-residents of Canada are not subject to the 25% Withholding Tax which is required for rental income.
However, if a non-resident owner has no history of filing tax returns in Canada, or has a history of late or missing filings, the owner may be subject to the 25% Withholding Tax until such a time in which the CRA is satisfied with their tax filing compliance. In these cases, the Rental Program can apply for a waiver on behalf of these owners to become exempt from the provision.