# Renting a room in your house



## bds (Aug 13, 2013)

A friend of mine asked if he could rent a room in the basement of my house short-term. I am considering it, but I am unsure of what I need to do it legally, it isn't worth it for me to risk illegally renting to someone as they've been cracking down on that lately (student town).

I know if I was to put a divider to create a duplex, legally I would have to enlarge one of the basement windows to a certain size as an "escape route" in case of fire - is this still required if it's connected to the upstairs?

-Do I need special insurance?
-Do I need some sort of permit?

I'm in Ontario.

Thanks!


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## Just a Guy (Mar 27, 2012)

How short is short term?


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## bds (Aug 13, 2013)

There is no set end date, likely less than a year but potentially longer


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## Just a Guy (Mar 27, 2012)

I'd treat it like a roommate and not worry about it.


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## Addy (Mar 12, 2010)

If you're going to divide it off so it's two seperate dwellings I wouldn't do it, but if you're sharing a bathroom or a kitchen you don't fall under the Landlord Tenant Act so I doubt anyone would come back on you for renting a bedroom out, I don't even think you would be doing anything illegal, what's the difference between your teenage son living in the bedroom basement and paying you for utilities and food?


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## Taraz (Nov 24, 2013)

If you're sharing the house, it's "shared accomodations" and you shouldn't have any problems. (It's also easier to evict a houseshare than a renter.) Make sure you draw up a "shared accomodations" contract (Staples has sample ones for ~$15 on CD).

Note also that you technically should be claiming the rental income (but you can write off a portion of house expenses).

Generally, the minimum window is required for a bedroom in the basement (not just for a rental). If he can't easily get out of your basement window, I wouldn't let him stay down there.


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## Cal (Jun 17, 2009)

Just a Guy said:


> I'd treat it like a roommate and not worry about it.


If you are friends, I would agree with the advice above.


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## carverman (Nov 8, 2010)

Taraz said:


> If you're sharing the house, it's "shared accomodations" and you shouldn't have any problems. (It's also easier to evict a houseshare than a renter.) Make sure you draw up a "shared accomodations" contract (Staples has sample ones for ~$15 on CD).
> 
> Note also that you technically should be claiming the rental income (but you can write off a portion of house expenses).
> 
> Generally, the minimum window is required for a bedroom in the basement (not just for a rental). If he can't easily get out of your basement window, I wouldn't let him stay down there.


True to all the above. I have a temporary tenant who is waiting for his rent to income housing becoming available in Ottawa. He is on ODSP and must show receipts that he is paying
rent. So I drafted up an agreement for us indicating this is temporary accomomodation until his rent-to income housing becomes available. Not knowing if this will happen in 6 months or
longer, I drew it up as 6 month temporary accomodation renewable every 6 months. Both he and I sign it and that is what he needs to show ODSP that he is paying rent, besides the
address changes for CRA, ODSP and MOT. 

Of course for the number of months he is renting from me, I will have to declare this on my 2014 tax filing next year as shared rental accommodation and expenses. 
There is a CRA form to use to declare rent and expenses on your tax filing. T776. 
As well there are periodic inspections by the Ontario Fire Marshall, so smoke detectors on all levels as well as CO detectors are now mandatory. 

The windows in the finished basement area are huge and allows him egress in case of fire. There are regulations on this as well. 
http://www.thestar.com/life/homes/2..._zoning_fire_building_and_electric_codes.html


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