Renting out your home or a room in your home may seem like a good way to make some extra money or to help pay for a vacation. However, many potential renters are unaware of what exactly is involved when renting out to tenants. For instance, they are unaware of the number of tenants the potential renter has to deal with. If you’re planning on becoming a landlord, make sure you reference the governing act in Ontario, the Residential Tenancies Act. The Act favours tenants in many ways, so you should be aware of your rights and obligations as a landlord. Here are some tips to get your space rent-ready.
Are You Renting Furnished or Unfurnished?
Before you rent out your property, you must determine whether or not it will be furnished or unfurnished. Renting out your property unfurnished could attract more potential renters. If your home is already equipped with appliances and other necessities, then it may limit the number of renters that are interested in renting it for a longer period of time.
How Many Tenants Do You Want?
Depending on how large your home is, you might be able to rent the property to a single-family or multiple renters. If you have a house that could be divided into multiple suites, you can consider renting to multiple renters. This will maximize your rental potential.
Are There Rules and Restrictions?
Your rental agreement should include the rules and restrictions of your property. As a landlord, you need to set rules so that tenants won’t cause problems or leave damages to the property. Here are some examples of common rules:
- no smoking inside the house
- tenants must do routine maintenance on the property (i.e., mow the lawn, shovel snow)
- tenant rents are paid in full by a certain date
- the tenant may not sublet the property
- you can also include any other rules you deem necessary.
How to Find Tenants
Many websites available online will allow you to list your property for free. Facebook Marketplace tends to be one of the most popular options these days for finding rental properties.
A thorough review of your prospective tenants’ backgrounds almost always results in a better experience than taking on renters at random by advertising online. Many tenants will need references from prior landlords or employers, so be sure to ask for these before you rent out any rooms if you want the best chance of success.
Renting out your home can be a great way to supplement your income, but it is important that you are aware of the repercussions before you begin. You will have to carefully consider what type of renter will be best for your home, along with all of the responsibilities that go along with being an owner and landlord.
Are you looking to relocate permanently? Contact us to start looking for your next home.