Great question! I have many Canadian investor clients that have purchased rental homes here in the Valley. I have them first apply for a US Tax ID number, then set up a US Bank account, which makes depositing the rent much easier. I take it a step further and have the tenants wire the funds directly into their account, which is much easier and timely than sending the rents up to Canada. One thing that wasn't mentioned here is that you will also want to check with the local municipality to see what the city tax rate is, that way you can collect it on top of the rent, making tax time that much easier and keeping more money in your pocket.
As I mentioned, I am a full service agent that specializes in Canadian investors. I can help you with every facet of renting here in the States, from finding the right property in a high demand rental area to securing a tenant and coordinating any necessary repairs. Please feel free to contact me anytime with questions, I'd be delighted to help!
I also have a bank owned foreclosure search that makes it easy to search ALL areas of the Valley:
Associate Broker, ABR, CDPE
West USA Realty
It is best to contact a local C.P.A. for tax consequences.
Here is the company that I recommend.
Terry S. Smith
Scottsdale Luxury Specialist
45 Year AZ Resident
DPR Realty LLC
8341 E. Gelding Drive
Scottsdale, AZ 85260
Contact me Direct (602) 763-1858
Office (480) 994-0800
US taxes or Canadian? One consequence is called FIRPTA. When you everntually sell the home a portion of the gain may be withheld to cover taxes. I've attached a link to an IRS page on the subject.