HRM

HALIFAX – TO SAY SMALL BUSINESSES HAVE HAD A HARD TIME OVER THE PAST TWO YEARS WOULD BE AN UNDERSTATEMENT. IN FACT, IT’S HARD TO CONJURE UP THE WORDS TO DESCRIBE THE BURDENS PUT ON ENTREPRENEURS DURING COVID-19; LOCKDOWNS, REDUCED FOOT TRAFFIC, AND REDUCED CONSUMER CONFIDENCE ARE ONLY A FEW.
Another business group that has spoken out against tax increases is IPOANS. The investment property groups says landlords, especially small landlords, can’t afford yet another expenditure at this time.

“It’s just one more blow against the investment property owners, especially the small landlords that collectively manage [thousands] of units,” says IPOANS director Kevin Russell.

Over the past two years, landlords have faced massive increases in the cost of insurance, building materials, and energy. This winter, they are reporting up to 25 percent increases for snow removal services.

And with the province’s recent decision to keep a two percent rent cap in place for two more years, Russell argues it’s getting harder for small landlords to even break even.

“They don’t have the financial capacity to keep continuing having these increases, whether it’s a tax increase [or something else],” argues Russell.

“It does impact the larger landlords…but they have the financial capacity and the sophistication to manage through this.”

Russell says a lot of people don’t realize that small landlords barely make a profit while they rent their buildings. Instead, they make enough to pay off their mortgage plus expenses, then sell the building when they’re ready to retire–only then does profit roll in.

“Their investment strategy was ‘I don’t need to increase my rent every year because I just want to make sure I’m breaking even and at the end of the day, when I sell my property…that’s my payday.”… [Read More]