# Tenant laws: owner occupied



## Dmoney (Apr 28, 2011)

If a homeowner has an apartment within their home which is rented out, are the laws different with respect to eviction and landlord/tenant rights?

For example, lets say I own a home and live on the main level and rent out the basement. My tenant is a deadbeat and I'm looking to evict him/her in the shortest period possible. 

Do I have any more rights because it is my principal residence than if it were not? Are the laws different if it is a "legal" duplex vs. if it is not?

Is the situation any different if I am currently living there vs. if I was living elsewhere and wanted to move back in, making it my new principal residence?
(For example was renting top and bottom separately and living at another address, but wanted to move back into the full house, evicting both tenants).

Any resources with information or people with experience would be much appreciated.


----------



## GreenAvenue (Dec 28, 2011)

Not in my province (NB). If you are the homeowner the tenant has very few rights. That is changing rapidly now but I evicted a couple last week, just put them on the street. Got a lot of angry faces b/c it was -18 C but it was a matter of not paying the rent. 

Is there a rentals man or some sort of ombuds man in your region? I would check with them. As far as I know you can evict tenants with a proper term as long as you can prove it's your property and you want to go live there yourself. 
Please let us know how this turns out.


----------



## Cal (Jun 17, 2009)

If you live in Ontario pm Berubeland....I think she might actually know everything there is to know regarding tenant/rental rules there.


----------



## Dmoney (Apr 28, 2011)

GreenAvenue said:


> Please let us know how this turns out.


I don't own yet, I'm thinking for down the line, if it's worth the hassle of owning some sort of converted single family home that produces income.

In the event of bad tenants, I just want to know if the landlord has more rights if it's also the principal residence.

In Ontario for anyone with more knowledge.

Still hypothetical, but I'm just trying to cover all the bases before I jump into anything.


----------



## lewin (Jan 10, 2011)

This varies from province to province but in Ontario the Residential Tenancies Act does not apply if you share a kitchen or bathroom. [source]

...and I suspect that if it's an illegal apartment (e.g., in a basement) then you lose a lot of leverage because the tenant could report you to the city.

Also, in Ontario you can only evict to move back in if they're month to month.


----------



## paulblac (Sep 27, 2009)

Lewin is correct - in Ontario, the Act doesn't apply at all. For those in other provinces, it's best to call your provincial landlord-tenant board to find out, or if you like reading legal documents, you can read your provincial act instead.

I rented rooms in my home for many years, for extra income and to gain experience managing 'tenants' before I started investing. I had a few roommates (that's essentially what they are) try to quote the Act on a few occasions, and I quickly shot them down. Essentially you can throw them out if they look at you the wrong way (not that I ever did that  )

If you're thinking of renting rooms, I recommend buying a house that is bigger than you need. I bought a 4-bedroom home, even though it was just me. My reasoning at the time was if I lost my job, being able to rent out rooms would help cover the mortgage and other costs. I never did lose my job (I quit to start my own business years later), but the extra income was great. Downside was dealing with some crazy roommates on occasion.

A few more tips...

- try to have a balance between guys and girls 
- too many girls will drive you nuts (they take over, and act 'catty')
- too many guys will cause your house to look like a pigsty (they never clean)

Hope this helps


----------



## Dmoney (Apr 28, 2011)

I knew the bit about sharing the bathroom/kitchen, which makes sense to me. So I guess that is one route to go down. I think a "legal" duplex might be considered two separate units, and hard to kick the tenant out because of "moving in" oneself. 

What are the repercussions or renting out an "illegal" duplex? Or an "illegal" basement apartment?

Is it actually illegal, or does it simply not meet the definition of a "legal" duplex?


----------



## iherald (Apr 18, 2009)

Dmoney said:


> I knew the bit about sharing the bathroom/kitchen, which makes sense to me. So I guess that is one route to go down. I think a "legal" duplex might be considered two separate units, and hard to kick the tenant out because of "moving in" oneself.
> 
> What are the repercussions or renting out an "illegal" duplex? Or an "illegal" basement apartment?
> 
> Is it actually illegal, or does it simply not meet the definition of a "legal" duplex?


Illegal is going to give you the following problems:

1) You won't be able to go to the landlord tenant tribunal to get money if they stop paying rent.

2) You can't use the rent as part of your income to get qualified for a mortgage (a legal apartment you use 50% of the rent towards your income)

3) The tenants could call the city and the city could force you to fix your house

4) Most important, it could screw you over on your insurance if there is a fire. The insurance company may say that you are engaged in an illegal act and therefore you are in breach of your policy and they won't pay. I've seen it happen.


----------



## peterk (May 16, 2010)

paulblac said:


> A few more tips...
> 
> - try to have a balance between guys and girls
> - too many girls will drive you nuts (they take over, and act 'catty')
> ...


If you're bringing a sole woman into your house and you're a guy, make sure you stipulate somehow in the lease that she is not your girlfriend. And have her re-sign a document before she's been there a year stating that you have no personal relationship.

Think someone who leaves a mess in your house and pays their rent late is a problem? Wait till they claim you're in a common law relationship and sue you for alimony...


----------



## paulblac (Sep 27, 2009)

iherald said:


> Illegal is going to give you the following problems:
> 
> 1) You won't be able to go to the landlord tenant tribunal to get money if they stop paying rent.
> 
> ...


I've personally never seen #1 happen -- there are TONS of illegal units across Canada, so I'd be surprised if this was the case. Could vary based on province though...

For #2, that percentage varies based on the lender and whether it is CMHC insured or not. Many lenders offer up to 80% offset for rental income (and that includes 'roommates' with a 'lease' too -- I've done it).

#3 is always a risk... for anything you aren't doing 'quite right' (e.g. not repairing your units, not mowing the grass, etc.)

#4 is a very real possibility. As the purchaser of a policy, you must disclose everything or else risk the chance you might not be covered. Applies to having roommates too! (which they consider riskier than just a family living in the home)

Paul


----------

