If research reveals you are charging rent comparable to the other homes, you know this home is rented at fair rental value and you probably have a profit motive. The new year is an important one for Ontario Landlords and we are upbeat. estate agents never list a house as having a legal basement apartment since they do not want to guarantee that the basement apartment complies fully with all the applicable fire codes, building codes, Electrical Safety Authority regulations and zoning and housing standards by-laws. Research tax rules before you do . Go to your municipality (you can call, go in person or go online) and check the rules and regulations on turning a basement into a rental unit. If you rent a unit in a house or apartment, you need to know your rights and what you and your landlord are responsible for. Renting out a basement can be a great source of additional income. These are not legal duplexes, just a basement apartment with seperate entrance, it’s own kitchen, bath etc. The maximum annual rent increase on rent-controlled units in Ontario is now set at 1.8 per cent. Income earned from renting out property is considered by the Canada Revenue Agency (CRA) to be rental income or business income depending on the duration of the rental and the types of services included in the rental agreement. Your landlord cannot shut-off these services, even if you have not paid your rent. Know your rights and responsibilities. However, it does not come without its share of effort to get the space into renting shape. Renting out your basement; Renting out a condo unit or house you own; Reporting rental income . Warm basement walls and energy savings go hand in hand. If you’ve recently taken out a whopping mortgage to buy a home in one of Canada’s soaring, red-hot housing markets, one way to ease the burden of those sky-high monthly mortgage payments is to consider renting out a room or perhaps even the entire basement of your home. I am renting out this recently built basement which has one bedroom, one full 3-piece bathroom, 1 full sized kitchen with all basic appliances, and one small dining/living area. Reset Your Password × Email* We will send you an email with further instructions. For example, if you paid $3,000 in property taxes on your principal residence and you rent out your basement apartment (representing 40 percent of the square footage of your home), claim $1,200 on your tax return. Plus, the landlord threw in perks like free parking and utilities that weren’t typically extended to renters in nearby above-ground apartments. Posted Feb 17, 2015 4:08 pm EST. You can also claim expenses for your rental property. Basement apartments might seem sweet, but watch out—as I learned in my cellar fiasco, unusual often means illegal. Login. JB. Is This Apartment Approved as a Rental Property by the City? 2006, c. 17, s. 20 (1). read. Utilities are a major expense for landlords. Utilities. As a potential investor, what is the best way I can protect myself? I don’t want to pay the premium for a basement apartment to rent out, only to find myself shut down a few months later. Some of the by-laws you need to know are: Heat By-law Property owners and landlords of residential rental units are required to supply adequate and suitable heat from September Welcome! A landlord can only enter a tenant’s unit in specific circumstances. Preferably, there should not be a direct entrance from the landlord’s part of the home to your apartment. Create Account. Log In to Your Account × Email* Password* Remember me. Whether it’s for extra income, providing a place for a family member, or increasing the value of the house, a second suite can be beneficial. A second suite is defined as a self-contained rental unit in a detached or semi-detached house. Tell your home insurance company. If there is a laundry room in the basement, find out if it will give the landlord access to your apartment. Steps away from bus stops. Renting out a second unit can provide much-needed income that can be put towards paying off a mortgage. And you allow yourself to justify why that person won’t let you speak to their current landlord or why the collection agency is after them. by News Staff. No need to reset? You can claim a tax deduction for the portion of utilities related to your rental property or suite. Living in the basement made perfect sense—the math doesn’t lie. Log In. In my house, I could rent the basement out for about $800 a month or rent out the upstairs for $1,600 a month. Get started! Heat: Your landlord must heat your home from September 1 to June 15. Your landlord may shut-off services for a short time so that they can make repairs. You need to be aware of your responsibilities are under Hamilton’s by-laws. 20. You live above the unit and you need the rent money to make the mortgage payment. To be clear if you were finishing a basement for your own personal family to enjoy, you wouldn’t need additional fire inspections, electcrical inspections and a certificate to make a space to create a rec room, so why is something that’s safe enough for your own family to use not nearly safe enough for a renter? On this tax form, you declare the rent received from your tenants. So all these landlords can breathe a sign of relief. What happens if your Landlord Sells – If you have a valid written lease, your landlord cannot evict you even if he or she decides to sell the unit – the new owner will simply be required to take over your lease (at the rent you currently pay and under the same terms). December 20, 2013. Creating a New Second Suite. I have been renting out a basement apartment for about 10 years now in a previous house and now 2 years in my current house, without issue. Verify that you have a separate outdoor entrance. 1. Reset. The work you will have to put into the second suite depends on if you are creating a new dwelling or upgrading an existing one. Keep the research materials used, such as newspaper or online ads, with your other tax records. Reply. Bob Aaron: Any investment, real estate or otherwise, involves an element of risk. If you are a tenant and a landlord has locked you out, or is threatening to lock you out, contact the Rental Housing Enforcement Unit: Tel: 416-585-7214; Toll-free: 1-888-772-9277; [email protected]; Entering a rental unit and physical distancing . When you are renting out part of your home (such as a basement apartment) it is almost certain that your insurance risk will increase, resulting in possible changes to your home insurance coverage. Toronto’s recent deep freeze has led to numerous residential issues involving frozen and broken pipes that have caused extensive flooding. Despite a very low Rent Increase Guideline of only 0.8% in 2014 more and more landlords are doing proper tenant screening and renting to all the good tenants out there (and avoiding the pro tenants who are out there and ready to prey on unsuspecting landlords). Search the best basement rentals in Toronto Ontario and quickly contact the landlord to get more information or schedule a showing. In order to be considered a ’legal apartment’, the apartment will need to meet certain zoning, property, occupancy, health and safety, fire and electrical standards. Forgot your info? Whether you are renting out a room in your house, a basement apartment or an investment property, you have to report the income to the CRA. If the legislation passes that makes basement apartments legal, it would be good for the many landlords who are currently renting out illegal basements. They can also support changing demographics by providing options for extended families, elderly parents, or live-in caregivers. Money is tight, and you’ve got to rent out your vacant basement unit. To be safe, keep your home insurance company in the loop and informed. David Weenen. When you rent out a unit in your home, you are obliged to inform your home insurance company – something that the vast majority of people fail to do. What do you do? If you rent out a suite in your house, you have to be willing to get up at 3 a.m. to repair a tenant’s leaky pipe or hire someone else to do it. If you rent out your principal residence while temporarily living somewhere else, you’ll need to consider hiring a property manager. By Jennifer Brown Special to the Star. (1) A landlord is responsible for providing and maintaining a residential complex, including the rental units in it, in a good state of repair and fit for habitation and for complying with health, safety, housing and maintenance standards. What are your rights as a renter? Forgot your Password? Fri., May 18, 2012 timer 4 min. I just recently got a call from a city of Oshawa bylaw officer wanting to speak to me as there is a complaint about a basement apartment in … Renting part of your Ontario house? Alexa Blay and her husband rented a basement apartment in Toronto, Ontario, for about a year and a half. Rent it out to the only person who is willing to move in right away. You're renting a basement, cellar, or attic. I’m not sure how many there are exactly, but it’s a lot. There are many schools In the area, some steps away. Overview of houses for rent in Ontario On Point2, it's easy to filter and browse through homes for rent in Ontario. As the government has discovered time and time again you can’t legislate compliance in these types of situations. It’s not forever. 6. It’s a win – win! Plain and simple, if you plan to use your basement for added living space and you want it to be comfortable, healthy and energy-efficient, you definitely want to insulate the walls with foam. Your landlord might pay for vital services; or you might pay for them. Upstairs Trade: A buy or sell transaction for an exchange-listed stock that is not executed through an exchange. Whether you're looking for single-family homes, mobile or recreational houses or any other rentals, you can get a list of properties based on your criteria with just a few clicks. You need to complete and file Form T776 (Statement of Real Estate Rentals) with your income tax return. You will have your own separate side entrance to the basement. On the upside, she estimates they saved about $300 a month on rent. Residential Tenancies Act Part III Responsibilities of Landlords Landlord's responsibility to repair. If you’re on the fence about living in the basement, remember this living arrangement isn’t forever. Plan out your costs to determine if it is a feasible investment. Typically, the rental needs to be at a fair market value to be eligible to submit a rental income schedule with your personal income tax return. What you need to know if your rental unit is damaged by flooding. Basement apartment, granny flat, accessory unit; no matter what it’s called, there are many different reasons for having a second suite. As it was for Scott McGillivray, it was a clear decision to go with the second option. We are located near Chinguacousy and Sandalwood. 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