If you could make some passive income, would you? We are fairly confident that we speak for all when we say: OF COURSE!
Whether you have a granny suite in your back garden or a few too many bedrooms, taking on a renter is a great way to make an extra buck. But, before you go ahead and sign a lease, you’ll want to do your homework. Being informed and organized will save you a lot of headaches. After all, a happy landlord is a good landlord.
Here are a few things to consider before renting out a suite or bedroom in your home:
- If you will be renting out a bedroom or two rather than a suite with a separate entrance, this means you will be sharing common areas with your renter. In this case, you will want to ensure you have a clear set of guidelines so that your renter knows which areas they can use and which are off limits.
- There may be different rules set out by each province depending on what type of space you are renting out, so be sure to look into those before you sign a lease.
- If you have home insurance, check with the insurance carrier about whether or not renting out a space in your home will affect your insurance. You may need to increase the amount, or at least let them know you have added more people and goods to your home. If something was to happen to your home and the insurance company did not know about these additions, they may not cover the damage. This is not a risk you should take on!
- Don’t forget that the income you get from renting out a space in your home is taxable, so be sure to claim it on your yearly taxes.
- Do some research on Gumtree to see what similar spaces are being rented out for in your area. This will help you decide on an appropriate price.
- If you have never been a landlord before, check out this post we did on tenancy rights frequently asked questions. It is important to know what rights the tenant will have.
- Be sure to know what your rights are, too.
- Do your due diligence and check IDs, meet the renter in person, do personal and rental reference checks, and go with your gut. If something doesn’t feel right about the potential tenant, trust that feeling.