Your children leave the nest to go to university all of a sudden, you have to rent a room or space in the basement. This seems to be an easy way to make money, but consider the following factors before making a decision.
Your rooms are cleaned and the time has come to find tenants. If you rent a space in the basement, consider placing ads in neighborhood grocery stores or on campus. Ad sites like Craigslist or online online forums are places increasingly popular view rental ads. Do not forget to indicate if you agree or if the animals are allowed to smoke.
When you have requests, take the time to identify suitable candidates. As an owner, you can ask questions on income and employment, but you can not ask about ethnicity, religion or sexual orientation, or whether potential tenant is unmarried, divorced or married. Ask for references to learn more about their personalities and habits.
What are the landlord’s responsibilities?
The owner must ensure that space does not pose a danger to the tenant, whether to make emergency repairs or take the time to do normal repairs.
The bad tenants are part of the risk of being a landlord. When problems are related to rent, the landlord can evict the tenant with the help of the Committee on provincial or territorial housing. The owner must follow the procedure in place before evicting a tenant.
How rental income affect your tax
Depending on your situation, you may need to include your rental income when you file your income tax return.
If you rent a room to someone and share the cost of living expenses and that you do not intend to make a profit, you do not need to report this income when you file your returns. However, if you intend to use this space in order to make a profit, you will need to include this information on your tax returns. If the rented space requires a loss or expenses, you will find a list of eligible expenses according to the Canada Revenue Agency you must also include this information when preparing your return.
Identify whether the benefit is a rental income or business income. If you provide basic services such as lighting, electricity and water, it is a rental income. If you provide meals, cleaning and ensure the safety of your tenants, it could be business income.
“Is It Beneficial For You To Become A Landlord?” is an English translation of a French article as bellow:
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Happy New Year and Best Wishes for 2014!
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