These 'property protectors' want to occupy Toronto homes so owners can dodge taxes
The Federal Underused Housing Tax Act (UHTA) and Toronto's Vacant Home Tax (VHT) are just the latest measures to combat the country's housing shortage, but one company is helping homeowners cheat the system in a creative, if not somewhat questionable, way.
The VHT imposes a three per cent tax on Toronto homeowners with vacant residential properties, a figure that translates to a staggering $15,000 per year for a home valued at $1m.
Ajax-based company Guardian Angels Property is helping homeowners evade this tax and is now trying to lobby City Hall in a bid to gain traction — a curious move for a company that seems to exist at least in part to circumvent City-implemented taxes.
Toronto's vacant home tax has arrived and here's what you need to know https://t.co/cWT33nyzv8 #Toronto #TorontoRealEstate #RealEstate
— blogTO (@blogTO) January 30, 2023
Matt Elliott reports in his City Hall Watcher newsletter that the company has registered to lobby City Hall. He notes that, while the lobbying file contact is listed as Conor Cave, "he and other staffers are listed by first name only" on the Guardian Angels website.
Elliot writes, "The gist of the Guardian Angels service is that they assign a 'property protector' who will inhabit your property free of charge," which saves the owner from paying vacant property taxes and allows owners to access their home within 24 hours if required.
Guardian Angels Property advertises that homeowners are first subject to a property assessment before a contract is signed, and then the company hand-picks a person to occupy the unit. Next, the homeowner provides 31 days notice and the property is handed over.
The service also promises that its "property protectors" are prevented from "acquiring any tenancy rights" in homes they inhabit.
The lack of tenancy rights might raise alarm bells, though it aligns with the company's other use to homeowners in protection against squatters.
The company cites average costs for homeowners dealing with squatters to be in the thousands, with legal fees, repairs, bailiffs, and garbage removal.
"Thousands and thousands of vacant properties in Ontario have been left empty for long periods of time," the Guardian Angels website reads.
"Regardless of what your property is usually used for, it is essential to protect property whilst vacant to ensure it doesn't suffer break-ins, vandalism or fire leading to costly repairs and expensive delays."
Guardian Angels Property states on its website that it provides these services to clients complimentary.
blogTO reached out to the company, and a representative confirmed that the business model is based on these so-called property protectors — who lack tenant rights — paying Guardian Angels Property to stay in these units.
