Any residential property with four or more self contained dwelling units under a single legal description with Alberta Land Titles is considered to be a multi-residential property for assessment and taxation purposes. This does not include condominium titled properties.
Your assessment notice reflects the estimated market value of your property based on the valuation date of July 1 of the previous year, as set by the Municipal Government Act.
How are multi-residential properties assessed?
Multi-residential properties are assessed using the income approach to value. A gross income multiplier (GIM) is applied to income to derive value:
A gross income multiplier is the ratio between the gross income that a property is capable of producing and the market value of the property.
Gross income multipliers are derived from market analysis (sales) and are applied to each property's typical market rent to estimate market value for assessment purposes.
Typical market rents are determined by an analysis of rental data obtained annually from building owners through the Assessment Request for Information (ARFI) process.
Multi-residential building - key factors, components & variables
1. Property type stratification
- Mixed use (lowrise or highrise with commercial space)
There are nine market zones for multi-residential properties which closely mirror the nine market zones that Canada Mortgage and Housing Corporation (CMHC) reports on annually and are also similar to other third party reports such as those from the Calgary Apartment Association. The nine market zones are:
- North Hill
- Fish Creek
3. Number of units
- Less than 9 units
- 9 or more units
5. Suite mix configuration
A combination of the number of each type of unit:
- 1 bedroom
- 2 bedroom
- 3 bedroom
- 4 bedroom/penthouse
How multi-residential land is valued
Assessment assesses multi-residential land annually for the purposes of taxation. Multi-residential land is characterized as those parcels which have no improvements and which have multi-residential land use as of December 31 of the previous assessment year. Multi-residential land is valued using the sales comparison approach.
Information we use to assess:
- land use (zoning)
- (land use restrictions, environmental concerns, flood plain, access, shape, topography, views, servicing)
Multi-residential land - key factors, components & variables
- Ranges: Nine multi-residential market zones used by The City of Calgary
- Criteria for range: Location of the land parcel
2. Land use (zoning)
- Ranges: Multi-residential zoning as laid out by the 1P2007 land use bylaw and any direct control bylaws affecting the property.
- Criteria for range: Land use designation on the parcel.
- Ranges: 0.0001 acres to 500 acres (diminishing rates apply).
- Criteria for range: Legal parcel size.
- Ranges: Land use restrictions, environmental concerns, flood plain, access, residual parcel, shape, topography, views, servicing.
- Criteria for range: Site specific characteristics of the parcel.