Key Takeaways
- 5,538 condos are listed for sale in Greater Vancouver at a median asking price of $685,450, with one-bedroom units at a median ask of $549,000 and two-bedroom units at $778,000.
- Purpose-built rental apartments averaged $2,364 a month in the October 2025 survey, up 2.2 percent from a year earlier.
- The Bank of Canada's policy rate sits at 2.50 percent as of October 29, 2026, and the five-year posted mortgage rate stands at 6.19 percent, though most borrowers negotiate a rate below that figure.
- Investors consider carrying costs, vacancy risk, strata rental restrictions and tax reporting when deciding whether a condo pencils out as a rental.
- The Canada Revenue Agency requires landlords to report all rental income and permits deductions for interest, property tax, insurance, repairs and other expenses tied to earning that income.
What's Listed for Sale
Greater Vancouver's active listings include 5,538 condos and apartments, making up 43.6 percent of all homes on the market. The median asking price is $685,450, and these units have been listed for a median of 51 days so far.
One-bedroom condos carry a median ask of $549,000 across the region. Two-bedroom units sit at a median of $778,000. Those figures span the entire inventory, from older walk-ups to newer towers with amenities, and from neighbourhoods close to transit to quieter pockets farther out.
Of the 3,710 listings that appeared in the last 30 days, 1,728 are condos, with a median asking price of $669,000. The spread reflects what sellers think the market will bear right now, and it gives buyers a range of entry points depending on location, age and condition.
What Rent Looks Like
The Canada Mortgage and Housing Corporation's annual survey of purpose-built rental apartments recorded an average monthly rent of $2,364 in October 2025, up 2.2 percent from $2,313 the year before. That survey covers buildings designed as rentals, not condos rented by individual owners, and it captures a snapshot each October rather than tracking live asking rents.
The figure is a useful benchmark, but it doesn't tell you what a specific condo will command. Rents vary by neighbourhood, building age, unit size, condition and whether utilities or parking are included. A one-bedroom near a SkyTrain station will rent for a different amount than a two-bedroom in a suburb with no transit nearby.
Investors compare the rent they expect to collect against the carrying costs they'll pay each month. That comparison, described in words rather than worked out on paper here, shapes whether a property makes sense as a rental.
Borrowing Costs and What They Mean
The Bank of Canada's policy rate stood at 2.50 percent on October 29, 2026. The five-year posted mortgage rate reported by the major chartered banks was 6.19 percent as of October 28, 2026. Most borrowers negotiate a rate below the posted figure, but the exact discount depends on the lender, the buyer's credit profile and the size of the down payment.
Investors typically put at least 20 percent down on a rental property to avoid mortgage default insurance, which is required on high-ratio loans and adds to the upfront cost. The monthly mortgage payment, along with property tax, strata fees, insurance and a reserve for repairs, makes up the carrying cost. If rent covers those expenses, the property carries itself. If it doesn't, the investor pays the difference out of pocket each month, a situation sometimes described as negative cash flow.
Rising or falling interest rates change the arithmetic. A lower rate reduces the monthly payment and can turn a break-even property into one that generates a small surplus. A higher rate does the opposite. Investors who lock in a fixed rate know their payment for the term; those who choose a variable rate accept that the payment will move with the policy rate.
Vacancy, Strata Rules and Other Considerations
A rental property only generates income when someone is paying rent. Vacancy between tenants, whether it lasts two weeks or two months, means the owner covers the full carrying cost during that stretch. Investors build a vacancy allowance into their thinking, recognizing that turnover is part of the business.
Strata corporations in British Columbia can restrict or prohibit rentals through bylaws. Some buildings allow unrestricted rentals. Others cap the number of units that can be rented at any one time, and owners join a waiting list when the cap is reached. A few buildings ban rentals altogether, except for specific circumstances such as a temporary work assignment. Before buying, investors confirm the strata's rental policy in writing and check whether any restrictions are already in place.
Strata fees cover common expenses such as building insurance, maintenance, landscaping and the reserve fund. Those fees are set by the strata council and can rise if the building needs major repairs or if insurance premiums climb. The fees are part of the monthly carrying cost, and they don't go away when the unit sits vacant.
What the Canada Revenue Agency Says About Reporting Rental Income
The Canada Revenue Agency's guide to rental income explains that landlords must report all rent collected during the year, even if the property operates at a loss. Rental income is reported on Form T776, Statement of Real Estate Rentals, and flows through to the owner's personal income tax return.
The guide permits deductions for expenses incurred to earn rental income. Those expenses include mortgage interest, property tax, insurance, repairs and maintenance, advertising, property management fees, utilities paid by the landlord, and a portion of motor vehicle expenses if the owner uses a car to manage the property. The guide distinguishes between current expenses, which are deducted in the year they're paid, and capital expenses, which are added to the property's cost base and recovered over time through capital cost allowance.
Landlords cannot deduct the principal portion of mortgage payments, only the interest. They also cannot deduct personal expenses or costs unrelated to earning rental income. If the property is used partly for personal purposes, only the rental portion of expenses can be deducted.
The guide explains that capital cost allowance allows owners to deduct a percentage of the building's value each year to account for wear and depreciation. The land itself is not depreciable. Claiming capital cost allowance reduces the property's adjusted cost base, which can increase the capital gain when the property is eventually sold. Some investors choose not to claim it in order to preserve the cost base.
The Canada Revenue Agency also notes that if a property is rented for less than fair market value to a family member or friend, the owner can only deduct expenses up to the amount of rent collected. Losses from below-market rentals are not deductible.
What It Means for Investors
Buying a condo to rent out is a long-term decision that hinges on whether the numbers work and whether the owner is prepared to manage tenants, repairs and the occasional surprise expense. The gap between the monthly rent and the monthly carrying cost determines whether the property pays for itself or requires a subsidy.
Investors who buy in neighbourhoods with strong rental demand, close to transit or employment centres, often find it easier to keep units occupied and to raise rents over time. Those who buy in quieter areas may face longer vacancy periods and slower rent growth, though the purchase price is often lower to start.
Strata rental restrictions matter. A building that allows rentals today might vote to restrict them tomorrow, and an investor who buys without checking the bylaws can find themselves unable to rent the unit or forced to sell at an inconvenient time.
Tax reporting is not optional. The Canada Revenue Agency expects landlords to file Form T776 every year, report all rental income and claim only the expenses the guide permits. Keeping receipts, invoices and bank statements organized from the start makes tax time simpler and provides documentation if the agency ever asks for it.
What It Means for Buyers Considering a Rental Property
Buyers who are thinking about purchasing a condo to rent out should start by confirming what rent the unit is likely to command. That means looking at comparable rentals in the same building or neighbourhood, not relying on a best-case figure or an outdated survey average.
Next, add up the monthly carrying costs: mortgage payment, property tax, strata fees, insurance and a reserve for repairs. Compare that total to the expected rent. If the rent falls short, decide whether you're comfortable covering the difference each month and for how long.
Check the strata's rental policy before you make an offer. Ask the seller or the strata management company for a copy of the bylaws and the rental restriction details. If the building has a rental cap, find out how many units are currently rented and how long the waiting list is.
Finally, talk to an accountant about the tax side. Rental income is taxable, and the deductions available depend on how the property is used and what expenses you incur. Understanding the rules before you buy helps you plan for the reporting and avoid surprises later.
If you're exploring investment properties in Greater Vancouver, Renanza's Greater Vancouver listings let you filter by property type, price and neighbourhood to see what's available right now.
Outlook
Borrowing costs, rent growth and strata policies will continue to shape whether buying a condo to rent out makes sense in Greater Vancouver. Interest rates influence the monthly mortgage payment, and even a modest change in the policy rate can shift the balance between positive and negative cash flow. Rent growth has slowed compared to the sharp increases seen in earlier years, and future increases will depend on supply, demand and the broader economy.
Strata corporations are paying closer attention to rental restrictions as buildings age and as short-term rental regulations tighten. Investors who buy today should expect that rental policies may change over the life of their ownership, and they should be prepared to adapt.
The decision to buy a rental property is never just about the numbers on the day you close. It's about whether the property will hold its value, whether you can keep it rented, and whether the income and eventual appreciation justify the work and the risk. Those answers depend on the specific unit, the neighbourhood, the building and the investor's own financial situation.
Sources
Renanza Realty — Analysis of active MLS® listings (CREA DDF®) — Greater Vancouver Bank of Canada — Target for the overnight rate (policy interest rate) Bank of Canada — Conventional mortgage, 5-year posted rate (major chartered banks) Canada Mortgage and Housing Corporation (via Statistics Canada) — CMHC average rents by centre (Table 34-10-0133-01), October 2025 survey Canada Revenue Agency — Rental income (guide T4036)
Data last checked: 2026-10-31
