# Owner Occupied Rental Property Beginner



## Top_Spin (Apr 25, 2011)

Hi There,

Need some advice from the experienced CMF landords. I've recently purchased a house much bigger than I need for myself. I'm interested in renting out part of it in order to help cover the mortgage. I'm also hoping some of the expenses which I'm already paying will become tax deductible. 

The quesion I have is where do I start? I've never been a landlord before. I know how to post an ad for property rental. I've found a few 'sample' tenacy agreements online which I can use/customize. 

But what else? Do I need to register with anyone? Do I need to get a lawyer? Or can I just run with the documents I found? 

Thanks,
Top Spin


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## MrMatt (Dec 21, 2011)

Read the appropriate provincial legislation.

Are you sharing a kitchen? If so they might be a boarder, not a tenant, which is a different situation (in Ontario)


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## Top_Spin (Apr 25, 2011)

I read what I could find and it made it seem like a written agreement isn't even necessary. 

I will be sharing a kitchen.


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## stardancer (Apr 26, 2009)

I am assuming that you will be renting out a bedroom (or two) in your house and giving your tenant(s) use of the kitchen, living room, laundry room etc.

You don't need a lawyer or to register. When you come to complete your tax return, yes, some of your expenses are deductible against rental income

http://www.cra-arc.gc.ca/ebci/cjcm/srch/bscSrch?lang=en&bscSrch=t776

DO NOT CLAIM CCA AGAINST YOUR HOUSE. If you do, this will create problems with your principal residence deduction down the line.


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## Top_Spin (Apr 25, 2011)

Thank you so much. That's very helpful.


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## Mall Guy (Sep 14, 2011)

For what it's worth, read everything you can find on the subject, including the horror stories on some of the blogs - this will help you to be aware of the pit falls, know what to look out for, and be on guard against. By sharing a kitchen and other areas of your house, you are bringing in a "roommate" for lack of a better term, meaning you are giving up some of your space and privacy. Much different than an apartment with a separate entrance. Take the time to properly screen any potential tenant - I have them fill out a rental application/reference check, credit check, and finally sign a lease agreement with specifics laid out in a schedule as required, including a "condition of premises" on possession (can be found on line). A written agreement helps you layout the ground rules (smoking, pets, noisy, parking, cleaning and other responsibilities). It's like a "friendly fence" between good neighbors. And always, be picky, very very picky!

I advertised on Kijiji, with an email address (no phone calls) with a request that asked potential tenants to "give me their story". If I didn't like the sound of things, no showing. If it sounded good, we meet (think of it as internet dating for tenants!).

Good luck!


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## iherald (Apr 18, 2009)

I rent out part of my place, but it's a separate apartment. You can write off the % of your expenses like insurance and mortgage interest (not principal) based upon the % of your house you rent. 

I don't know how it works if you share space, but I rent out 40% of my place, so I can deduct 40% of the expenses. don't forget you have to include their rent into your income.

Personally I wouldn't rent out my space to a stranger. I'd do it to a friend of a friend, but I'd want someone to vouch for them.


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## Quotealex (Aug 1, 2010)

IMO it is simpler to sell your house and buy a smaller one than dealing with a stranger as a roomate. But that is just me.


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## Berubeland (Sep 6, 2009)

The nice part about having a roommate (sharing a kitchen & bath) is that you are not covered under the Residential Tenancies Act. If you don't like them or they don't pay rent just lock them out. (Decent notice would be nice, but it's not necessary)


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