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Friday, 29 June 2012

Tips for first-time landlords

In a time when single family homes are more and more expensive, acquiring a renter may be an attractive option for many homeowners. The extra income from a tenant is a terrific way to pay off a mortgage faster, or simply free up space in a tighter budget. This article from the Globe and Mail gives a list of helpful hints for those thinking of renting out the basement.

When making a change as significant as this, it is important to do the proper research. Every province has different regulations for landlords, so ensure you are complying with the proper guidelines. There are several helpful hints on the CMHC website. It is also prudent to research the tax implications of becoming a landlord. Any rental income acquired must be claimed as income on your yearly tax return. Finally, ensure you alert your home insurance company. Failing to report a rental suite to your insurance company can void the policy if anything were to occur in the suite itself.

Another important consideration when thinking of renting out your personal space is privacy. If your suite isn't equipped with a separate entrance, be prepared to see a virtual stranger in your house and around your property. If this is an uncomfortable feeling for you, it may be wise to consider renovating to allow for a private tenant-entrance.

For more information on taking on a tenant in your own home, contact a Canadian Mortgage Broker.

To read the full article from the Globe and Mail, click here.

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