Being a Landlord - TIPS

Mission is hot and it's only going to continue growing! One thing I've noticed is that many homes have suites (more than before) and people more than ever, are deciding to rent out those suites. The rental market in Mission is difficult to get into right now and there is a large demand for spacious rentals and those that allow pets. When deciding if renting for you, here are some things you should think about. 



1. Consider your privacy. 
Can you live with seeing a stranger around your house or using your property outside? Is the extra money worth it? 

2. Try to avoid renting to family. 
It is best not to rent to family, as it completely changes the relationship and is difficult to use “eviction” or “collection” rules against a non-paying family member without destroying the relationship and having the repercussions ripple out into the rest of the family.

3. Sign a proper written lease. 
Always – even with family members – have a properly written lease between you and the tenant that clearly outlines the rules, late rent penalties, expectations, and length of term. It must be signed by every adult who is to reside in the suite.

4. Don’t set your rent too low. 
Never be the lowest rent in the market – you will attract the type of renter whose focus is solely on dollars. It will also lead to more rapid turnover as they leave to the next “lowest rent” spot. To set the proper rent for your suite, go online and search for available units in your area. Make sure to look at a number of different sites and be location-specific in your comparisons. Look at the amenities and picture them through the eyes of a potential renter. Then place your price in the middle or higher end of the average comparable. Again, the Mission rental market is hot right now and you would be able to charge more for your rental now, that you would have been able to charge just a few years ago. 

5. Do your research. 
Each province and territory has its own landlord-tenant legislation so make sure to read up on the rules that apply where you live. In addition, make sure to research your local municipal bylaws, which include things like guidelines and standards for fire and building safety. Municipal bylaws also cover issues like zoning and permits. For example, some cities are now looking to shut down secondary suites in specific neighbourhoods. Not conforming to these rules means you could be shut down at a moment’s notice, so check with the city to make sure that your suite is legal.

6. Tell your home insurance company. 
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. If anything were to happen, for instance if a fire starts in the rental suite, the insurance company could say they were not informed of the tenant and that the policy is voided.

7. Research the tax repercussions. 
Once you have a rental suite in your home, you have to claim that rental income on your tax return. In addition, once you start using the property for revenue, a portion of the capital gain when selling the property could be deemed taxable.

8. Pets or no pets? 
This is a hot topic. MANY amazing families are looking for a home that will allow them to bring their fur-baby(ies) along, and many landlords decide they do not want to deal with animals in their home. If you are open to the idea, be sure to do your research and check with the BC Tenancy Board to see what your rights as a landlord are.