Can you rent a room in your house in Canada?

So long as your local legislation permits it and the space you’re planning on renting meets a few basic prerequisites, renting out a room in your house is not only legal but is fairly easy to do with the right knowledge and tools.

First, though, it’s important to double-check that your local zoning regulations allow for renting, as well as consult any specific regulations from your Homeowner’s Association or strata, if applicable.

The exact rules for renting out a room in your house vary by province, but Canadian landlords will all follow a similar process to ensure the space is legal. Before you go ahead and list your unit for rent, you’ll need to do the following:

1. Check the zoning requirements and building codes in your area to ensure the room is legal
2. Obtain a business license and/or rental permit from your local municipality
3. Make sure your basement suite meets the safety and fire regulations set out by the province
4. Ensure that your rental agreement is in line with your province’s equivalent of the Residential Tenancy Act.

Pros and cons of renting out a room in your house

As with any major decision, renting a room in your primary residence comes with its fair share of positives and negatives. Whether the potential rewards outweigh the risks is up to each individual landlord to decide, but here’s a basic breakdown of the things you’ll need to take into account.

Pros of renting out a room in your house

• Rental income — The main appeal of renting part of your house is the added income it brings in. For landlords who could use a little extra help covering mortgage payments and expenses in the current market, having a steady stream of rental income without needing to purchase an additional property is a huge benefit.
• Shared expenses — Costly bill payments like internet and electricity can be split with tenants, helping to bring down your overall expenses and boost your profitability.
• Creating housing — Rental housing is constantly in high demand in Canada’s major cities, and renting out a room helps add much-needed options to a thin market.
• Flexibility — Compared to purchasing and renting a dedicated rental property, renting out a room in your house is a convenient and cost-effective way to become a landlord.
• Potential tax benefits — Landlords can offset their taxable rental income by claiming expenses related to renting, further boosting the profitability of their new rental unit.

Cons of renting out a room in your house

• Loss of privacy — Renting out a room isn’t for everyone, and some landlords may find it difficult to live in close quarters with someone they don’t necessarily know all that well.
• Risk of non-payment/damage — The wrong renters can cause serious headaches for homeowners, including damaging the property, not paying rent, and disturbing you and your neighbours. Thankfully, it’s easier than ever to find reliable tenants through advanced tenant screening solutions like the Trust Score.
• Legal liability — Landlords must ensure that their rental property and lease agreements comply with local & provincial legislation at all times, and are responsible for the cleanliness and safety of the room.
• Added responsibility — While there won’t be too many extra responsibilities to worry about, landlords will need to ensure they stay on top of maintenance and repairs to keep the room in tip-top shape for their tenants.

What do you need to rent out a room?

There’s more to renting out a room in your house than posting a listing and signing a contract. By renting out part of your room you’re officially becoming a landlord and will need to take a few key steps to ensure that you’re compliant with your province’s rental laws. Once again, the exact guidelines vary by province and municipality, so always consult your local regulations for exact requirements.

Here’s a quick breakdown of what homeowners should consider before renting out their rooms:

• Safety — Each province and municipality will have specific guidelines for safety standards of rental units. Generally speaking, your room will need to have windows, properly installed plumbing fixtures, and other things like a clear fire exit to ensure tenants’ safety.
• Business license — Homeowners renting out rooms in their house will first need to obtain a short- or long-term rental business license. These can typically be obtained from your local business license office for a fee once you’ve met the above safety considerations and filled out the necessary paperwork.
• Local tenancy laws — Each province has its own guidelines for residential tenancies. As a landlord, your duty is to ensure that you’re following these laws and upholding your responsibilities.
• Lease agreement & Addendums — Lease agreements are the formal contracts governing tenancies in Canada. Most provinces like B.C., Ontario, and Alberta have a standardized form available for download, but you can also create your own lease so long as it complies with your local tenancy laws. Adding lease addendums for things like parking, laundry, and utilities is another great way to bulletproof your lease and ensure that you’re protected from any possible disputes during the tenancy.
• Rental management software — In today’s world, most landlords rely on digital tools to help run their rental business. These sophisticated programs can cover everything from listing to tenant screening and creating & signing leases, making your job far more manageable. One such platform is liv.rent – an all-in-one rental management solution with digital tools for Canadian landlords. With built-in comprehensive tenant screening through the Trust Score and a community of verified renters, this complete program helps take the guesswork out of renting.

Tips for renting out part of your home

Being well-prepared and educating yourself on your rights and responsibilities as a landlord is key to ensuring that everything goes as planned. Below are some of our top tips for first-time landlords to enjoy a stress-free tenancy and maximize their profits.

1. Know how much to charge for rent — Pricing your unit correctly is key to renting it out as quickly as possible while ensuring you’re earning enough profit. Researching the latest rent prices in your area for comparison is a great place to start, or for a more personalized evaluation, you can book a free 15-minute listing assessment with one of our liv.rent Rental Experts. We’ll look closely at your listing’s details to help you maximize your reach – including a complimentary rent estimate so you can be confident with your price.
2. Be thorough with your tenant screening — Doing your due diligence during the tenant screening process helps to eliminate the risk of damage and missed rent payments caused by troublesome tenants. Credit checks are a great tool for landlords to evaluate a renter’s financial capabilities, but often don’t give a complete picture of their suitability. Instead, try using an all-in-one tenant screening metric like liv.rent’s Trust Score. This complete tenant screening tool factors in tenants’ income & employment verification, income-to-rent ratio and public court records to provide a more accurate report of their quality as a renter. It’s also a good idea to have a detailed list of questions ready to ask any applicants.

3. Study up on tenancy laws — Each province has its own guidelines protecting tenants during the rental process. Be sure to consult your province’s residential tenancy act to familiarize yourself with what is and is not permitted. To help first-time landlords make sense of Canada’s different rental laws, liv.rent has compiled a handy Landlord Resource section of our blog.
4. Share your listing to reach more renters — Marketing is key to filling your unit as efficiently as possible. One way landlords can expand their reach is to use a platform that allows for easy listing sharing. On liv.rent, landlords can quickly share their listing to Craigslist, Facebook Marketplace and Kijiji with just a few clicks. You can read more on liv.rent’s marketing features here.
5. Use a checklist — There’s a lot that can be missed throughout the rental process, particularly if it’s your first time renting out property. To help make sure you don’t miss any important steps and are protecting yourself as you’re renting, it’s a good idea to have a checklist on hand for things like preparing and inspecting the rental property, advertising your listing, and screening tenants.

Renting your room on liv.rent

There are plenty of advantages to listing your room for rent on liv.rent. Designed specifically for modern landlords in Canada, this all-in-one platform has digital tools for every step of the rental process. In addition to the Trust Score, landlords can post unlimited listings for free as well as access time-saving features like built-in sharing and digital contracts & rent payments. For first-time landlords in particular, things like a centralized inbox for tenant communications and income statements can help you stay organized while maximizing your profits.

Landlords on liv.rent also benefit from our multi-layered verification processes for renters. As part of our commitment to building a safe & trusted rental community, we request renters upload documents to verify both their identity and income, as well as optional social media verification for an extra layer of security. When renters apply to your listing, you’ll be able to see their verification status with a handy checkmark to let you know that it’s safe to proceed.

Ready to get started? Here’s a quick video on how to post your room for rent on liv.rent:

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The post Landlord Guide: Renting out a room in your house appeared first on liv.rent blog.

Why renovate a rental property?

Renovations are a great way to boost your rental property’s value and rental appeal, ultimately helping you attract higher-quality tenants and net more rental income. There are plenty of options for upgrades you can make to your rental property, ranging from simply updating a kitchen, bathroom, or living space, to adding a deck or converting an existing part of your home into a rental unit.

The main purpose of any renovation, big or small, is typically to update or modernize part or all of your home. This can be costly and time-consuming in the beginning, but will quickly pay dividends in terms of the long-term appreciation of your rental property. In addition to improving your property’s livability and/or curb appeal, a well-planned renovation is an excellent way to get more out of your real estate investment without needing to purchase a new property.

Things to consider before renovating a rental property

Renovating your rental property is no simple undertaking, and involves a number of important considerations before you can begin a new project.

Here are some of the things homeowners need to think about before renovating their rental property:

• Impact on tenants (if the unit is currently being rented): If the property is currently occupied, it’s crucial to consider how the renovation will impact the tenants. Be upfront with your tenants about the upcoming renovations, the scope of work, and the expected timeline to ensure that their comfort and safety are prioritized throughout the renovation process. In some cases, the renovations may be so substantial that they require the unit to be empty – in which case you’ll need to give your tenants the proper notice to end tenancy form.
• Scope and budget: Make sure you have a clear idea of the scope of the renovation project and set a realistic budget. Determine which areas or features of the rental property need upgrading and prioritize improvements that provide the highest return on investment, such as kitchens, bathrooms, and energy-efficient upgrades. Be sure to account for unexpected expenses throughout the process as well.
• Local regulations and permits: Familiarize yourself with local building codes, permits, and regulations that pertain to renovations. Depending on the extent of the renovation, you may need to obtain permits from local authorities. Failing to adhere to regulations can result in fines and delays.
• Timing: Carefully consider the best time to conduct the renovations. If the property is already vacant, for instance, this could be an excellent opportunity to complete more extensive work without disrupting tenants. If the property is occupied, try to work with your tenants to schedule renovations during periods when they are likely to cause the least inconvenience.
• Renter preferences and needs: When planning renovations to your rental property, it’s a good idea to attempt to understand your target market and their preferences for a rental property when planning renovations.
• Return on Investment (ROI): Evaluate the potential return on investment for each renovation. While certain upgrades can increase rental value and property appeal, be cautious not to over-improve for the neighbourhood or market, as you might struggle to recoup the costs.
• Contractors and professionals: Select reputable contractors and professionals for the renovation work. Obtain multiple quotes and references, and ensure that the chosen team has experience with rental property renovations. A reliable team can help streamline the process and deliver quality results.

The best renovations for improving a rental property

When it comes to renovating your rental property, not all types of renovations are built equal. Different types of renters look for different things in a rental unit – families might appreciate an upgraded kitchen more, whereas younger professionals might look for a patio or outdoor space to entertain on – so it’s important to also keep in mind your ideal renters when planning renovations.

You’ll also want to keep in mind your property’s long-term value. How will your money best be spent? The ideal renovations provide both immediate value in terms of increased rent prices, while also boosting return on investment for the property itself.

Here are some of the best renovations for improving your rental property:

1. Kitchen Upgrades: Updating the kitchen with new appliances, countertops, and cabinetry enhances the property’s appeal and functionality, attracting renters who are seeking a more modern, functional living space.
2. Fresh paint and flooring: Applying a fresh coat of paint and replacing worn-out flooring is a relatively small renovation that totally revitalizes your rental property’s appearance, making it more inviting and ready for new tenants.
3. Bathroom remodel: Renovating bathrooms in the unit with modern fixtures, tiles, and vanities is a fairly straightforward way to modernize your rental property, improving both its overall value and desirability.
4. Energy-efficiency upgrades: Installing energy-efficient appliances, windows, and insulation not only helps reduce utility costs for you and your future tenants but also allows you to market your listing as environmentally conscious and modern.
5. Curb appeal enhancements: Simple landscaping improvements, a well-maintained exterior, and a welcoming entryway go a long way towards creating a memorable first impression, increasing the property’s appeal to potential renters – especially in photos.
6. Smart home integration: Incorporating smart thermostats, locks, and lighting systems is another small upgrade that appeals to younger renters seeking convenience in their homes.
7. Add storage space: Adding built-in closets, shelves, or storage units maximizes space efficiency, catering to renters who are bringing lots of things with them, or families who could use the extra space.

Rules & regulations for renovating a rental property

From obtaining construction permits to rental laws, there are plenty of guidelines homeowners will have to adhere to if they want their renovations to progress smoothly.

These regulations can vary significantly depending on the province your rental property is located in, particularly when it comes to tenancy laws and the amount of notice you need to give tenants for major renovations. Permits for construction and renovation are usually obtained from your municipality, so it’s important to consult with them before you begin a new project.

Rental property renovations in BC

Here’s a quick breakdown of some of the key rules landlords in B.C. should be aware of prior to carrying out rental property renovations:

Minor renovations & repairs: In B.C., the majority of renovations and repairs can be carried out without any major interruption to existing tenants. In such cases, landlords are only required to give tenants 24 hours’ written notice that they will be entering the unit, specifying the date, time, and purpose for entering the property.

Here are some examples of common repairs & renovations that don’t require vacancy in B.C.:

• Cosmetic renovations such as repainting, replacing flooring, installing new counters or cabinetry
• Plumbing repairs such as re-piping or replacing faucets/fixtures
• Replacing or adding appliances
• Exterior/interior door or window replacement

Renovations that require vacancy: In B.C., the general rule of thumb is that renovations require vacancy if they either make the rental unit unsafe for tenants, or result in the prolonged loss of an essential service such as water or electricity.

Before giving notice, landlords must first apply to end the tenancy for renovations or repair. A dispute resolution hearing will follow, where an arbitrator will decide whether the renovations require the tenancy to end. If the landlord’s application to end the tenancy is approved, tenants will have 4 months to vacate the rental unit.

Here are some examples of common repairs & renovations that might require vacancy in B.C.:

• Re-wiring an entire rental unit
• Installing or replacing fire sprinklers
• Seismic upgrades
• Renovations that require interior walls or ceilings to be demolished

Permits & approvals: Generally speaking, any renovation or repair that’s substantial enough to require vacancy will also require landlords to obtain proper permits and approvals through their local government.

Permits are grouped under categories such as building, demolition, and plumbing. Depending on the type of work, homeowners may also need to secure electrical or gas permits as well. These are generally obtained through the B.C. Safety Authority, but may be issued by local governments as well in some cases.

Other regulations: If a tenant receives a 4 month notice to end tenancy, they are entitled to receive one month’s rent as compensation.

Rental property renovations in Ontario

Here’s a quick breakdown of some of the key things landlords & homeowners in Ontario should be aware of before renovating their rental property.

Minor renovations & repairs: Similar to B.C., the majority of small- to medium-sized repairs and renovations in Ontario won’t require landlords to evict their tenants prior to beginning. Also like B.C., landlords must only given 24 hours’ written notice prior to entering the unit to carry out this work.

Renovations that require vacancy: For any large-scale renovations, landlords must apply to the Landlord & Tenant Board (LTB) for permission to evict the tenants for the purpose of demolition, repairs, and conversion. Once this process begins, an adjudicator for the LTB will rule on whether or not the eviction is warranted. This is decided on a case-by-case basis.

Once this application is approved, landlords may issue their tenants an N13 – Notice to End your Tenancy Because the Landlord Wants to Demolish the Rental Unit, Repair it or Convert it to Another Use. The termination date must be no sooner than 120 days after the notice was issued.

Permits & approvals: Any major renovation in Ontario will require you to obtain a Building Permit from your local municipality. Generally speaking, you will need a building permit for any of the following renovations or repairs:

• Constructing any new building over ten square meters in area or place another structure, such as a mobile home, on your property
• Making renovations or repairs or add to a building
• Changing the use of a building
• Excavating or construct a foundation
• Constructing a seasonal building
• Undertaking work regarding the installation, alteration, extension or repair of an on-site sewage system

Quick-fixes and minor upgrades likely won’t require you to obtain a permit, but it’s important to consult specific guidelines and double-check before getting started.

Other regulations:

Tenants who are given notice to move out for renovations or repairs can choose to move back into the rental unit once the work is complete, and the rent must be set at the same price as before the tenancy was originally terminated.

If they wish to go this route, tenants must provide the landlord with a written notice of their intention to move back in. The landlord cannot refuse to allow the tenant to move back into the rental unit so long as they provide this notice prior to moving out.

Rental property renovations in Alberta

Minor renovations & repairs: In Alberta, landlords can carry out most minor repairs without requiring tenants to vacate the unit. Before entering the unit, they must give 24 hours’ written notice.

Renovations that require vacancy: For major renovations in Alberta, landlords must provide tenants with 365 days’ written notice to end the tenancy. Major renovations do not include painting, replacing of floor coverings, or routine maintenance.

Permits & approvals: Permits are required in Alberta for any major renovations, including new buildings, additions, renovations, alterations, repairs, relocations, demolitions, or the change of use in an existing building.

For any substantial work done on your rental property, landlords will need to obtain a Building Permit from their local municipality. These permits grant homeowners access to expert advice, compliance inspections, and oversight of the early stages of construction.

Other regulations:

Homeowners are responsible for ensuring compliance with Alberta’s safety codes, however they will be provided with guidance from their municipality once permits are obtained.

FAQ: Renovating a rental property

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The post Renovating a rental property: A guide for Canadian landlords appeared first on liv.rent blog.

What renters should look for in a rental website or platform

When choosing which apartment rental site to use, renters should take into account the following factors:

• Verified landlords & listings – Rental scams are a common sight in the current market, and it’s important for renters to be able to distinguish real listings from fake ones meant to swindle them out of their hard-earned money. The safest way to go about this is to choose a rental platform with multi-layered, manual verification protocols that can reliably spot and block suspicious listings and user profiles.
• A variety of customizable search filters – Looking for listings can be a lot of work without the right tools. To save you time in your search, opt for a rental website with lots of options for searching, such as number of bedrooms & bathrooms, pet policy, contract duration, and included amenities to streamline your quest for the perfect place.
• Security features – Renters are required to submit a variety of personal and financial information throughout the rental process, and it’s important that you’re sure where this information is going and how it’s being used. Ideally, choose a rental platform with a clear privacy policy that won’t sell your data.

What landlords should look for in a rental website or platform

• Tenant screening features – Protecting your property investment should be a priority for every landlord. The wrong tenants can cost you thousands of dollars in damages and missed rent payments, so it’s important to utilize a tenant screening tool like the Trust Score that goes beyond a credit check, giving you a complete picture of tenants’ reliability.
• All-in-one tools – Today’s landlords live busy lives, and deserve a rental platform that can keep up, helping them save time at every stage of the rental process. While listing sites are great for sharing your listing to in order to expand its reach, landlords can make their leaves easier with a platform that supports listing, leasing, and signing contracts & receiving rent payments in one place.
• Flexible pricing plans – Some Canadian rental platforms charge a listing fee or a percentage charge for ongoing use of their services. Especially if you’re just getting started as a landlord, you’ll want to keep as much of your profits as possible with free listings and optional pay-per-use features to give you greater flexibility.

How to find apartments for rent in Canada

No matter where in Canada you’re located, the process for finding an apartment tends to be more or less the same. While some renters may still prefer to canvas the neighbourhoods they’re interested in in-person, looking for vacancy signs, the majority of Canadian renters will conduct the majority of their housing search online through apartment rental sites, whether they’re looking for apartments for rent in Halifax, apartments for rent in Winnipeg, apartments for rent in Toronto, or apartments for rent in Montreal. Today’s landlords know that renters are increasingly searching online, and you’ll find almost every available property in your area listed online, where you can inquire and arrange viewings.

The main challenge facing renters is deciding which apartment rental site will be the most beneficial in helping them find apartments for rent in Canada. Not all rental platforms are built equally, and where you choose to conduct your search will influence not just how much time and money you spend on the rental process, but also how safe & secure you are during your search.

To help simplify your decision, we’ve broken down some of Canada’s best and most popular rental platforms to give you a better sense of where you should begin your search for the perfect place.

1. liv.rent – Canada’s Best Rental Wesbite

Features Included: 12 / 12

Pricing (Landlords):

• $0 (Essentials)
• $48 / month (Growth)
• $399 / month (Business)

Renters

On liv.rent, tenants can easily search for rentals using a variety of filters and even a map view, then quickly message landlords for more information using built-in instant chat. From there, they can submit applications, book viewings and when it comes time, sign lease agreements and pay rent and security deposits through a variety of methods including credit card, UnionPay and even Bitcoin.

Landlords

For landlords, liv.rent provides pre-filled listing templates to help you create attractive, effective listing pages, including a newly added Smart Description feature which uses AI To write an engaging listing description for you, plus tools to allow for sharing to other platforms like Craigslist and Kijiji. Simply put, liv.rent is the best website to post a rental property for landlords.

The platform also comes with pre-loaded standard digital lease agreements for B.C. and Ontario, in addition to a variety of lawyer-vetted lease addendums to add detail to your contract. For quick and effective tenant screening, liv.rent has refined and added to their innovative Trust Score feature, which gives landlords a comprehensive picture of a tenant’s suitability including a credit summary, a detailed risk assessment, income & employment verification, and more. All in all, this complete platform is the best way to advertise and manage your apartments for rent in Canada.

For landlords looking to further streamline their rental process and gain access to the same tools used by professional property managers, liv.rent’s new Growth plan is here to make renting even easier. The Growth plan is effectively an all-in-one property management software package, with all the tools you’ll need to digitize and streamline your rental process from start to finish. For just $48/month, this comprehensive plan includes:

• Unlimited lease protection addendums
• 2 Trust Score reports with credit check per month
• Automated rental advertising (2 per month)
• Shared management tools for up to 3 users

…plus everything in our Essentials plan.

2. Zumper

Features Included: 12 / 12

Pricing:

• Free (up to 10 listings)
• Unlimited listings: 2% of monthly rent

Like liv.rent, Zumper is a home rental site that’s popular among renters and landlords across Canada. On top of a user-friendly layout, Zumper has features to help landlords and tenants streamline every stage of the rental process, including tenant screening and rent payment & collection.

Renters

For renters, Zumper is a convenient way to browse and apply for listings thanks to its visually appealing layout. With that being said, the site does lack the comprehensive security and verification features of other platforms like liv.rent, though it does allow for the entire rental process to be completed within the site and there are some measures in place to prevent against fake landlords and listings.

Landlords

Zumper also has a full 12/12 features, including digital contracts and rent payments and a variety of tools to help you create and share listings. The only area where the site falters is in its security protocols, which aren’t as in-depth as other platforms. Also, though it’s free to start, Zumper charges a fee for landlords or property managers who have more than 10 listings, which makes it a costly option for businesses. Still, this apartment rental sites​ wide range of features put it in contention for the best rental websites in Vancouver.

3. Zillow

Features Included (10/12)

Pricing

Zillow is primarily a platform for buying and selling real estate, but the site is also a popular place for renters & landlords, especially in metropolitan areas like Vancouver and Toronto. The platform has a variety of tools to simplify the lives of both landlords and renters, although it’s two shy of a perfect 12/12. Zillow is free to start for landlords but has ongoing weekly fees for additional listings, which means it can get expensive quickly if you have multiple properties to rent.

Renters

Zillow is fairly easy to browse thanks to a handy map view and a simple, easy-to-navigate layout. Renters can also request to book showings/submit applications directly from the listing page using pre-set forms. It’s also handy to be able to see exactly when listings were posted front and centre to save time applying to outdated posts.

Landlords

Zillow has a good range of descriptors and options for creating great-looking listings which include room for tons of photos as well as 3D tours. The site also provides a convenient neighbourhood map for all listings, in addition to an FAQ section that gives more information about the property and its location. Zillow has a number of convenient features for managing rentals as well, including rent payments and digital contracts, though it lacks some marketing and organizational tools.

4. Condos.ca

Features Included: 6 / 12
Starting Price: Free

For both renters and landlords, Condos.ca has a lot of the basics you need to rent a home in Canada. Available in a number of Canadian cities, this popular apartment rental site facilitates both sales and rentals in one location, with quite a few of the most important features users should look for.

Renters

Renters will benefit from the many listings available on Condos.ca, particularly if you’re looking to rent in the Greater Toronto Area. The map view makes searching for listings easy and it’s fairly simple to inquire & apply to properties you’re interested in, but the lack of a built-in chat can make communication difficult.

Landlords

Built-in marketing plans and organizational tools are a big plus for landlords, but Condos.ca is still primarily a listing site, without the all-in-one features of other platforms on this list. Despite this, the platform is easy to use with a fairly wide audience and is free to get started.

5. Kijiji

Features Included: 5 / 12
Starting Price: Free

Kijiji is a marketplace site that doubles as a popular place for landlords and renters to post and find rental listings. The platform offers a basic suite of listing features including plenty of fields and filters for filling out specific details and room for lots of photos.

Renters

Kijiji is a good basic option for browsing and applying for listings, though it lacks many features that renters may look for. The site does allow for messaging within the platform which makes for much easier communication. Unfortunately, Kijiji doesn’t have much in the way of security features and provides little protection against scams.

Landlords

For landlords, Kijiji is a perfectly suitable place to post your listings due to the site’s broad audience and high traffic, though that’s about all it offers. Unlike Craigslist, Kijiji does have a chat feature for easy communication, as well as a centralized inbox for easy lead management.

6. Rentals.ca

Features Included: 5 / 12
Starting Price: Free

Rentals.ca is another popular place to find and rent apartments, houses and condos, and offers a user-friendly layout as well as excellent search capabilities and an interactive map.

Renters

Rentals.ca is a great option for renters primarily because of the number of listings available. Since it’s such a popular home rental site, there are plenty of rentals to choose from and the site makes it easy to navigate them thanks to a split-screen map/photo view and lots of different search filters.

Landlords

Rentals.ca allows landlords to post for free, and the site offers lots of ways to customize your listing and make it stand out, including a photo gallery and neighbourhood score. Because it’s a listing site, Rentals.ca doesn’t provide features for navigating the rental process beyond inquiries.

7. Realtor.ca

Features Included: 5 / 12
Starting Price: Free

Realtor.ca is another top website for finding apartments and houses for rent in Canada in terms of popularity. Having an app is handy for when you’re on the go and about to spend a day viewing listings. However, without digital contracts and rent payments, it’s still a bit old-school and may prefer to save paper in the rental process.

Renters

Despite being used primarily for real estate sales, Realtor.ca is also a popular and easy-to-use website for finding rentals. Since the majority of the rental properties on this platform are posted by licensed real estate agents on behalf of their owners, tenants have a bit more security than with other options.

Landlords

Although it’s primarily a listing platform, landlords should find Realtor.ca fairly intuitive with attractive listing pages and standard options for facilitating tenant inquiries via phone or email. The site also has basic organizational tools to help you manage your listings efficiently, as well as a mobile app for on-the-go rental management.

8. PadMapper

Features Included: 4 / 12
Starting Price: Free

PadMapper is another popular option in Canada due to its easy-to-use map view for easy browsing, as well as a variety of built-in search features. The site is fairly bare-bones in terms of appearance and features, but works quite well and is simple to use for what it does.

Renters

PadMapper lets renters browse with ease thanks to an interactive map and various filters. As far as communications, PadMapper allows tenants to send messages with their phone number and email address to get in touch with landlords. The platform doesn’t mention any specific security or verification processes, though it does require a precise address in order to post a listing.

Landlords

PadMapper is a simple, effective way for landlords to get their listings posted quickly, though the site doesn’t offer support for much beyond inquiries. The site’s map view is extremely easy to navigate though, a feature which tenants still gravitate towards.

9. Facebook Marketplace/Groups

Features Included: 4 / 12
Starting Price: Free

Facebook Groups and even Marketplace are great ways to find apartments and houses for rent in Canada. Though renters and landlords should exercise caution when using the platform due to the potential for fraudulent posts and users, there are plenty of local, moderated groups that allow for easy browsing and the ability to get in touch over Facebook Messenger. For a safe, convenient Facebook Group, check out liv.rent’s own curated rental group, where we post and share apartments, houses and rooms for rent in Canada.

Renters

Facebook is an extremely popular place for renters to browse apartments thanks to the volume of posts, though this is also its greatest downfall. Because Facebook has never claimed to be a rental platform, the site has few checks in place for screening out scams, although there are many moderated groups that provide a safer alternative.

Landlords

Landlords looking to reach a broad audience would do well to post their listing to Facebook due to the large number of renters browsing the platform. Though it doesn’t provide much in the way of additional features, it’s easy to get your listing posted and communicate through the built-in Messenger app.

10. Craigslist

Features Included: 2 / 12
Starting Price: Free

If you’ve ever rented in Canada, you’re likely already familiar with Craigslist. The marketplace site has long been the go-to place to post and find rental listings, as well as a variety of other goods & services, due to its pared-down appeal and ease of use. Though it may come out on top in terms of the number of listings available, the site lacks many of the security features renters and landlords should look for in a rental platform.

Renters

Renters can easily browse the site using a good selection of filters. For applications, Craigslist lists landlords’ email addresses and/or phone numbers for renters to get in touch. Do use caution when applying to rentals on Craigslist though – since there’s little in the way of verification, it’s not uncommon to come across rental scams on the site.

Landlords

Craigslist does provide a basic listing template including room for plenty of photos. The site also allows for a map view of each property and provides ample room for a description, as well as pre-set options for details about the unit. Renters can easily browse for rentals using a good selection of filters. For applications, Craigslist lists landlords’ email addresses and/or phone numbers for renters to get in touch.

11. 4rent

Features Included: 2 / 12

Pricing:

• $29 / month (Standard Tier)
• $59 / month (Premium Tier)
• $129 / month (Featured Tier)

4rent is a rental listing website that’s popular across Canada and offers both attractive listing pages and organizational tools for landlords. However, it does fall short in other categories, notably, it does not have an app or a chat feature, which can allow for instant communication between landlords and tenants.

Renters

4rent has listings in cities & towns across Canada and is easy for renters to navigate thanks to convenient drop-down filters and a map view for navigating listings. There’s even a ‘create alert’ option for hands-off browsing and you can submit inquiries directly using a built-in form.

Landlords

Posting listings is straightforward with 4rent, however you’ll likely need to go elsewhere for things like leasing and rent payments since this minimal platform keeps things simple. Still, listings look good and reach a wide variety of renters and some of the organizational tools built into the platform can be useful.

Renters: what is the best website to find apartments for rent in Canada?

Given the rapid rise in rental scams in recent years, renters looking for apartments for rent in Canada should put their safety & security first when it comes to choosing a rental website. Particularly for first-time renters, students, or those renting from abroad, using a rental website that safeguards you from the stress and financial burden of scams is vitally important. In the absence of face-to-face communications, there are plenty of opportunities for dishonest or deceitful behaviour on either end of the rental process. Our goal at liv.rent is to reduce the risk of potential scams by helping connect verified landlords & tenants to build a trusted rental community.

Not only is liv.rent safe, it’s also incredibly easy for renters to use thanks to time-saving features like listing alerts, tons of customizable search filters, and video tours to allow you to browse listings with ease. To make your applications even easier, you’ll only need to fill out your profile once and can then apply to multiple listings with just a few quick clicks.

Watch the video below for a step-by-step tutorial on getting started searching for listings on liv.rent.

Landlords: where should you post apartments for rent in Canada?

As a landlord, your main focus should be creating a profitable rental business while also ensuring your property is protected from troublesome tenants who can lead to damage, complaints, missed payments, and other costly issues. While most landlords will already be familiar with popular websites like Craigslist and Kijiji, the rental scene has evolved with new, all-in-one options creating a far easier and safer way to rent in Canada..

For these reasons, landlords unsure of where to post their listing for rent should be sure to check out liv.rent. The Vancouver-based platform’s broad range of tenant screening, marketing and management features make it the best-in-class, while flexible pricing plans let both landlords and property managers find an option that works for them. As well, liv.rent has a detailed verification process for tenants including the revamped Trust Score, where you can view employment/income verification, credit checks, a detailed risk assessment, and more in an easy-to-understand format. Best of all? It’s completely free to post unlimited listings, as well as access many liv.rent features like rent collection and standard digital contracts.

If you’re searching for an easier way to list and manage your rentals, be sure to sign up for liv.rent today.

FAQ: The best websites to post & find apartments for rent in Canada

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The post 11 Rental Websites in Canada 2026 appeared first on liv.rent blog.

Interested in learning more about the laneway home construction process and how you can turn your secondary property into an income-earning rental property? Reserve your space at our collaborative webinar on June 15, 2023 at 11:00am PDT.

What is a laneway house?

Laneway homes are a common sight in B.C.’s Lower Mainland but even if you call Vancouver home, you may still not be totally familiar with what makes a laneway house. Simply put, a laneway house is a secondary home built on the property of an existing house. To be termed a laneway house, it must also border an alley or laneway, whereas a coach home refers to any secondary property in a more general sense.

Most municipalities in B.C. and many in Ontario permit the construction of laneway homes, and this form of housing has seen rapid growth in popularity lately, as governments recognize the need to increase density in urban areas. Laneway homes can be designed to match owners’ existing houses and meet a variety of unique needs. Generally speaking, laneway houses can range from 500-1000 sq. ft. with 1-2 bedrooms/bathrooms – though this isn’t a hard & fast rule.

Benefits of building a laneway house

There are countless benefits of building a laneway home for property owners that go far beyond just renting – though this is certainly one of their main draws. Building a laneway house in Vancouver is a wise investment for so many reasons and definitely something homeowners should consider, particularly if they’re already looking at purchasing a rental property.

Here are some of the main benefits of building a laneway house on your property:

1. Increased property value — Whether or not you’re considering selling your home any time soon, adding a laneway home is a great way to drive up your property’s value. The flexibility of these spaces for housing guests or family, or being used as an income-generating rental unit, is something many buyers specifically look for. Though there’s obviously an upfront investment required, you’re likely to recoup your money and then some upon selling.
2. Passive income — Renting out a laneway house is a great way to start generating rental income, which can help homeowners offset their mortgage costs or provide an additional revenue stream. Demand for rental housing in Vancouver is consistently high, and a well-designed laneway home can attract tenants and yield a favourable return on your investment in a relatively short time.
3. Adaptability — Laneway homes offer great flexibility in terms of how they can be used. They can function as a rental property, a separate living space for family members or guests, or a home office/studio depending on your needs. For those looking to downsize without leaving the neighbourhood they call home, laneways are a great solution.
4. Creating housing — Especially in Vancouver, there is a growing need for affordable housing options to meet the needs of the city’s many renters, not to mention the hundreds of thousands of new immigrants expected to arrive in the near future. Laneway homes maximize existing space to provide more housing options without changing the character of the city’s distinct neighbourhoods.
5. Safety & community — Laneway houses can also help keep neighbourhoods safe by adding a new presence in otherwise deserted alleys. They also help to grow individual communities by allowing new residents to move in without disturbing the existing character.

Challenges of building a laneway house

1. Zoning & permits — Every municipality, Vancouver included, has specific zoning and bylaw requirements that new laneway homes must meet. Homeowners must ensure that their property meets these requirements related to lot size, setbacks, building height, parking, and design guidelines. Navigating through the zoning and permitting process can be complex and time-consuming without the right help.
2. Cost —Though laneway homes tend to be much more affordable than purchasing an all-new property, there are still a number of expenses homeowners should consider before committing to construction. Fees for permits, materials, contractors, design, and much more can add up quickly once the process begins, so it’s important to consider all this beforehand.
3. Location — Not every neighbourhood or property is suited to a laneway house. If your lot is located close to a neighbour’s, you may face resistance over privacy concerns, for example. Furthermore, if you plan on renting, it’s important to realistically consider how busy your local rental market is if you plan on your new laneway becoming an income-generating asset.

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Building a laneway house: an overview of the construction process

As with any construction project, there are multiple stages to building a laneway house in Vancouver. From start to finish, homeowners are looking at about a 12-month timeline once all’s said and done, though this can vary greatly in other regions or for more complex cases.

Here’s how the process is usually broken down, with expert insights from Harvey Gill, owner and founder of Home Wealth Investments:

Survey, planning, and design –⁠ 1-2 months

Before you can start building a laneway house in Vancouver, or anywhere for that matter, a professional surveyor must assess the property to determine the boundaries, topography, and existing infrastructure. This information is crucial for the design and construction process and informs the steps to come.

The planning & design stage involves working with architects, designers, and potentially other professionals to create a comprehensive plan and design for the laneway home based on practical aspects of the property and the owners’ needs. This includes conceptualizing the layout, selecting materials, and addressing zoning requirements.

Cost/budget & permits –⁠ 3-4 months

Prior to breaking ground, a realistic budget must be calculated. Determining the cost and budget involves estimating the expenses for materials, labour, permits, and any additional requirements specific to the project.

The next step is obtaining the necessary permits and approvals from your local municipality or government. This includes permits to use city property during the construction process, as well as removing any existing structures, trees, and so on. You’ll also need to obtain the proper pre-approvals before any of this to ensure your proposal is on the right track, and there are other concerns during the construction process like applying for sewage or water connections.

Due to the complexity of budgeting and navigating through the permitting process, it typically takes about 3-4 months to complete this stage. Working with experienced professionals can make this process much easier though, and ensures you don’t miss anything along the way.

Construction –⁠ ~6 months

Once the planning, design, and permits are in place, the construction phase can finally begin.

This stage involves the actual building of the laneway home, including site preparation, foundation work, framing, electrical and plumbing installations, interior finishes, and landscaping if necessary. The duration of the construction phase can vary depending on the complexity of the project, but it generally takes around 6 months to complete the construction of a laneway home.

How to rent out a laneway house

If you plan to generate rental income from your new laneway house, you’re first going to need to find tenants. Especially since they’ll be living in your backyard, it’s important to be diligent throughout this process and ensure you’re finding the best match possible. The last thing you want is to have your search for tenants turn into a lengthy ordeal, or alternatively, be rushed and end up with trouble-making renters in your brand-new unit.

This is where liv.rent comes in. This Vancouver-based rental platform was designed to help landlords save time and find the right renters faster with all-in-one solutions for everything from listing to signing a lease.

Here are some tips on how you can streamline the most important and time-consuming parts of the rental process and ensure you’re doing your due diligence in your search for the perfect tenants.

Tip #1: Share your listing to reach more renters

The best way to speed up your rental process from the get-go is to share your listing to as many platforms as possible. It’s tough to get your unit rented in a timely fashion if you don’t have enough leads, and being able to reach renters on a variety of sites is key to achieving this.

Once your listing has been posted on liv.rent, landlords can easily share it to popular platforms like Craigslist, Kijiji, and Facebook Marketplace, expanding their audience significantly and ensuring they receive plenty of applications.

Tip #2: Have a centralized “hub” for your listing

Now that you’ve got more applications than you know what to do with, it’s time to streamline things to help save time later on. After all, if you’re renting out your laneway house, you’re probably not interested in spending countless hours filtering through applications.

That’s why within each pre-formatted listing you share, there’s a link for interested renters to apply directly on liv.rent. One of the most time-consuming parts of the rental process is having to read through emails and messages from all different platforms to pick out the renters that you’re interested in continuing the conversation with. By keeping all your communications limited to one convenient platform, you’re cutting down on the time this step typically takes significantly.

Tip #3: Go beyond the credit check

Likely the single most important part of the rental process for laneway home landlords in particular is tenant screening.

Since they’ll be living on your property, it’s more important than ever to make sure that your new tenants are not only able to pay rent, but won’t cause any disturbances to you, your family, or your neighbours. Your promising new investment can quickly become a liability with tenants who interrupt your routines or worse – cause damage to your brand-new laneway house. It’s normal for landlords to perform a credit check on applicants to get a sense of their financial situation and ability to pay rent on time, but this doesn’t always tell the whole story.

This is why liv.rent developed the Trust Score – our comprehensive tenant screening tool. Using credit information from Equifax® and our own industry-leading verification features, this report combines all the information landlords need to identify the right renters quickly. An easy-to-understand score provides an easy way to assess and rank applicants, while information like a detailed risk assessment, income-to-rent ratio, and a unique trustworthiness metric help give you a full picture of applicants, even if they don’t yet have a Canadian credit history.

FAQ: Building & renting a laneway house in Vancouver

About Home Wealth Investments

Home Wealth Investments is a group of licensed home builders with over 40 years of construction experience in the Lower Mainland. Specializing in building Laneway/Coach homes, they handle the entire project from budgeting and construction, all the way to tenancy & management. Their goal is to build high-quality, affordable homes at the best price point possible.

Interested in learning more about the laneway home construction process and how you can turn your secondary property into an income-earning rental property? Reserve your space at our collaborative webinar on June 15, 2023 at 11:00am PDT.

Rethink The Way You Rent

Not on liv.rent yet? Experience the ease of digital applications & contracts, verified tenants & landlords, virtual tours and more – all on one platform. Sign up for free or download the app.

Subscribe to receive the latest tenant & landlord tips and get notified about changes in the Canadian rental market.

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The post Building & renting a laneway house in Vancouver ft. Home Wealth Investments appeared first on liv.rent blog.

The numbers

Background

The landlord

“As an all-in-one rental platform, liv.rent was really designed to save both landlords and tenants time & stress, while simultaneously keeping them safe.”

Olivia Lam, Founder of liv.rent

• Number of listings managed: 5
• Rental platforms used previously: Facebook Marketplace, Craigslist, VanSky, VanPeople, Little Red Book
• Management software used currently: liv.rent
• Primary concerns: Efficiency, protecting the property, finding a suitable match

Olivia maintains 5 rental properties across Metro Vancouver, which can quickly become a time-consuming addition to an already busy schedule. For her, the rental process is all about minimizing stress while ensuring that her unit is filled with qualified tenants who won’t cause problems later on.

Prior to founding liv.rent, Olivia had been manually posting her listings on a variety of popular listing platforms, as well as local rental groups.

As with many landlords, she became frustrated with the time-consuming nature of the rental process – especially given the number of applicants she had for each of her five properties. Aware of the pressing danger of rental scams, Olivia was cautious to carefully screen each renter that applied to avoid missed payments and costly damage to her rental properties, while also making ongoing management of the units easier by ensuring vacancies were filled with tenants she could trust.

Challenge #1: Streamlining the application & pre-screening process

“Some days I’d receive 30-40, even upwards of 60 applications for a single unit. Being able to access all of these applications in one place was a huge time-saver.“

Olivia Lam, Founder of liv.rent

One of Olivia’s biggest frustrations with the rental process prior to founding liv.rent was having her email inbox clogged with rental applications. With multiple businesses to run and a jam-packed calendar, she felt like she couldn’t give each application the attention it deserved since there were simply so many to keep track of.

Solution: Centralizing leads on liv.rent

After consulting the latest rental data to get a sense of the market, Olivia began her rental process in earnest by creating a liv.rent listing and sharing it to a variety of other platforms in order to reach more qualified renters. For Olivia, the more prospective tenants she could reach, the better.

Directly through liv.rent, Olivia was able to share her listing to Craigslist, Facebook Marketplace, and Kijiji with built-in marketing tools. Through this feature, she was able to easily transpose the entire listing including photos, already pre-formatted for other sites.

Since Olivia has had great experiences renting to international renters in the past, she also manually shared her postings to other platforms such as VanSky, VanPeople, and Little Red Book. With the help of the Trust Score, liv.rent’s tenant screening tool, she was able to look beyond credit information and accurately evaluate & consider other groups of renters whose applications may be overlooked by many landlords.

Each of these shared listings contained a link to the original listing on liv.rent, plus instructions for how to apply. As other landlords have done, Olivia used this opportunity as a “pre-screening” step to get a sense of how well applicants could follow directions and whether or not they were interested enough to make the effort.

Challenge #2: Getting applicants to complete their Trust Score

Once they had signed up for liv.rent, Olivia also asked applicants to get a Trust Score through the platform to aid in her decision-making.

While most applicants were more than happy to complete their liv.rent profile and get a Trust Score rating, some renters were understandably wary to enter that much personal information online. Some had concerns about how their data would be used, why it was necessary to provide it, and what measures were in place to protect it.

Solution: Emphasizing transparency & security

“Being a landlord is a lot different today than when I first started renting out property. Due to increases in scams and reports of troublesome tenants, I have to be more cautious than ever now – which is why most landlords ask for so much documentation.”

Olivia Lam, Founder of liv.rent

For Olivia, getting a complete picture of applicants is a necessity. To reduce turnover and create successful, lasting landlord-tenant relationships, it’s extremely important for Olivia to cultivate trust & transparency from the get-go.

Trust is a two-way street though, which is why Olivia made sure to point out to hesitant applicants that she had already been verified through liv.rent’s multi-layered process. She also highlighted the industry-leading data security procedures that protect all liv.rent users’ information – including important documents uploaded for verification purposes.

When prospective tenants expressed reluctance at providing things like their driver’s license and credit history, Olivia explained that all user information, including everything that is submitted to generate a Trust Score report, is stored securely in the cloud and protected by military-grade encryption protocols. For those who required further explanation, she made sure to link them to liv.rent’s Privacy Policy to quell any lingering doubts.

By this point, nearly every renter felt confident providing the required information and Olivia was able to proceed with her tenant screening process using the Trust Score.

Challenge #3: Making a final decision

“Deciding which renter(s) to choose during the end stages is always very difficult for me. I typically favourite applications that stand out so that our conversations are easily accessible, but in most cases, there are multiple applicants who I think would make great tenants”

Olivia Lam, Founder of liv.rent

Since some of Olivia’s rental properties are on the higher end in terms of rent price, her primary concern was finding tenants who could reasonably afford to pay rent on time with no foreseeable problems.

Even with the current market conditions, there was no shortage of applicants whose financial situation seemed suited to the listing they were applying for, so Olivia had to rely on the Trust Score to provide more insight into each applicant’s rental history and overall patterns as a tenant, and more importantly as an individual.

Solution: Going beyond finances with the Trust Score

Using her most recent listing as an example, Olivia had narrowed the field to three sets of candidates: a young couple, a graduate student moving from abroad, and a single professional. All of these applicants had complete profiles on liv.rent and plenty of supporting documents that clearly showcased their rental history. Even though the international student didn’t yet have a credit history in Canada, they were able to provide proof of funds that adequately proved their ability to make rent payments.

Faced with three excellent options for future tenants, Olivia had to look more in-depth at each of their Trust Score reports to find the perfect fit for the property in question.

Beyond vital information like applicants’ Credit Summary, Risk Assessment, and Income-to-rent Ratio, Olivia paid particular attention to each renter’s Trustworthiness score, making sure to view the documents they had submitted as an added layer of protection.

Ultimately, while the Trust Score played an integral role in creating a “shortlist” of qualified applicants, the final decision came down to who was the best match for this particular property, since each applicant was equally well-suited financially.

After speaking to each of the prospective tenants in-person at scheduled showings as well as online through liv.rent’s Instant Chat, Olivia decided to proceed with the young professional, who had an excellent financial history and seemed like the best fit for the building and neighbourhood.

In brief

With 5 rental properties and a significant investment on the line, the importance of an efficient and all-encompassing tenant screening process was magnified in this case.

Here’s a quick summary of the steps Olivia followed to ensure she was connecting with qualified renters at every step of the rental process:

1. Sharing to multiple platforms: Using both built-in sharing features as well as reaching an additional audience through manual sharing, Olivia was able to ensure that her listing was put in front of more renters. Expecting a high volume of applications, she also took steps to streamline the process from the outset by directing all interested renters to liv.rent – where she could see all their information in one place, communicate directly, and also favourite applications to ensure they don’t get lost throughout the lengthy rental process.
2. Prioritizing mutual trust at every stage: In this digital age, landlords necessarily require a lot of information about tenants in order to make informed and accurate screening decisions. However, Olivia was also keenly aware that tenants are particularly concerned about rental scams and took measures to promote two-way transparency right from posting her listing. By verifying her profile and listings and reassuring renters about the safety of their information, she was able to do her due diligence while also ensuring applicants knew they were in a safe situation.
3. Looking beyond traditional credit checks – For nearly every landlord, finding tenants who are able to pay rent in full and on time is usually priority #1. When there are multiple applicants who all meet your financial criteria though, landlords & property managers need additional information to reference in order to make a final decision. In Olivia’s case, her choice often comes down to a number of equally suitable renters, in which case she looks at additional information like their Detailed Risk Assessment and Trustworthiness in order to get a complete understanding of who she’ll be renting to.

Takeaways from this case

Olivia’s rental process showcases how landlords can make well-informed tenant screening decisions and save time without compromising renter safety in the process.

Here are some key takeaways from this case study:

1. All-in-one solutions make managing multiple properties possible — From beginning to end, Olivia was able to use the liv.rent platform as her one-stop hub for all relevant communications, applications, showings, and even contracts & rent payments.
2. Doing your due diligence makes for stress-free tenancies — For landlords & property managers renting out multiple units, ensuring each vacancy is filled promptly with trustworthy tenants is paramount. Though it may require additional effort upfront, the countless hours saved from dealing with troublesome occupants is well worth it.
3. Trust is a two-way street — While landlords need to ask for a lot of information throughout the application process, it’s important to remember that today’s renters are hyper-aware of rental scams. Taking the time to verify your profile and listings is an excellent first step towards building a relationship of trust & transparency.

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The post Landlord Case Study: How to streamline tenant screening for multiple rental properties appeared first on liv.rent blog.

Are basement suites legal in Canada?

In short, basement suites are legal in Canada. However, there are certain rules and regulations that must be followed in order to ensure the safety and comfort of both tenants and landlords. Depending on the province or territory, there may be specific zoning requirements and building codes that must be met in order to rent out a basement suite. Additionally, landlords must be aware of their local bylaws and regulations, which may require registering your basement as a rental unit or securing additional permitting.

The exact rules for owning and renting a basement suite vary by province and city, but Canadian landlords will all follow a similar process to ensure their unit is legal. Prior to renting out their basement or another part of their house, prospective landlords will first need to do the following:

• Check the zoning requirements and building codes in your area to ensure your basement rental is legal
• Obtain a business license and/or rental permit from your local municipality
• Make sure your basement suite meets the safety and fire regulations set out by the province
• Ensure that your rental agreement meets the Residential Tenancy Act of British Columbia
• Make sure your rental agreement includes all the necessary clauses and information required by the province

Advantages of renting out your basement

Renting out a basement suite is an attractive proposition for homeowners looking for another income stream. Money isn’t all would-be landlords have to gain from renting out part of their home though. Let’s look at some of the top reasons homeowners might want to rent out their basements.

• Adding another source of income — With mortgage rates climbing higher, many Canadian homeowners are looking for a way to make their monthly payments more manageable. If you already have a basement suite or another part of your home you’re not using, renting it out is a great way to earn more money through rental income and staying on top of your bills.
• Extra security — So long as you trust the tenants you rent to, having an occupied basement suite can offer an extra layer of security when you’re away on holiday or just out of the house for prolonged periods of time. Doing your due diligence while screening tenants can pay dividends in this regard.
• Less maintenance and upkeep responsibilities — With someone living in your basement, you won’t need to worry about small repairs and chores like changing lightbulbs and vacuuming. While you’ll need to prepare the unit for your new renters according to local guidelines, you’ll likely end up saving time that would otherwise be spent on small fixes and cleaning.
• Increasing your property’s value —When it comes time to sell your home, adding a basement suite if you don’t already have one will significantly increase your property’s value. Particularly if you’re situated in a popular rental market like Vancouver or Toronto, prospective buyers may be eager to purchase a home that already has rental space built in.

Disadvantages of renting out your basement

While renting out a basement suite can be an easy way to add another income stream and reap the benefits of a rental property, homeowners should also be aware of the potential downsides of becoming a landlord. The good news is, nearly all the risks of renting your home can be eliminated with a thorough tenant screening process and a solid knowledge of your local rental laws.

Here are some potential disadvantages facing homeowners looking to rent out their basement:

• Potential damage to your property — The wrong tenants can cause substantial damage to your property, which is why it’s important to find the right renters the first time. Particularly since you share a roof, the potential for property damage can often scare homeowners away from renting part of their house.
• Disruption to your day-to-day life — Having a renter in part of your home isn’t for everyone. Tenants causing disturbances can interfere with your routines and end up disrupting your daily life if you’re not careful. When searching for tenants to rent your basement suite or another part of your home, take your time to find a perfect match who will respect your space.
• Tenant disputes — Prior to renting out their basement, landlords will need to study up on their local rental laws in order to avoid disputes with their tenants later on. From missed rent payments to tenancy rules and lease terms, it’s a good idea to know what to do in a situation before it arises.

What you need to rent out a basement suite

Renting out your basement isn’t quite as simple as posting a listing and signing a lease. Before you even think about renting part of your home, there are a few key steps to ensure that you’re compliant with your province’s rental laws. Once again, the exact guidelines vary by municipality across Canada, so it’s important to double-check for any additional stipulations before going to rent your basement.

Here’s a quick breakdown of the items homeowners should consider prior to renting out their basement:

• Safety considerations — Each municipality has its own specific guidelines for safety standards of secondary suites. These generally consist of considerations such as having a clear fire exit, windows, properly installed plumbing fixtures, and other items designed to ensure tenants’ safety. The list can be quite extensive in some areas, so be sure to double-check that your unit meets the requirements before taking any other action.
• Business license — As with any rental property that earns income, homeowners planning to rent out their basement will first need to obtain a short- or long-term rental business license. These can be typically be obtained from your local business license office once you’ve met the above safety considerations, gathered the necessary paperwork, and paid any requisite fees.
• Local tenancy laws — Each province has its own guidelines for residential tenancies. As a landlord, your duty is to ensure that you’re following these laws and upholding your responsibilities.
• Lease agreement & Addendums — Lease agreements are the formal contracts governing tenancies in Canada. Most provinces like B.C., Ontario, and Alberta have a standardized form available for download, but you can also create your own lease so long as it complies with your local tenancy laws. Adding lease addendums for things like parking, laundry, and utilities is another great way to bulletproof your lease and ensure that you’re protected from any possible disputes during the tenancy.
• Rental management software — In today’s world, most landlords rely on digital tools to help run their rental business. These sophisticated programs can cover everything from listing to tenant screening and creating & signing leases, making your job far more manageable. One such platform is liv.rent – an all-in-one rental management solution with digital tools for Canadian landlords. With built-in comprehensive tenant screening through the Trust Score and a community of verified renters, this complete program helps take the guesswork out of renting.

Tips for renting out part of your home

As with anything, preparedness is key to successfully renting out a basement suite, room, or part of your home. Below are some of our top tips for first-time landlords to enjoy a stress-free tenancy and maximize their profits.

1. Know how much to charge for rent — Pricing your unit correctly is key to renting it out as quickly as possible while ensuring you’re earning enough profit. Researching the latest rent prices in your area for comparison is a great place to start, or for a more personalized evaluation, you can book a free 15-minute listing assessment with one of our liv.rent Rental Experts. We’ll look closely at your listing’s details to help you maximize your reach – including a complimentary rent estimate so you can be confident with your price.
2. Be thorough with your tenant screening — Doing your due diligence during the tenant screening process helps to eliminate the risk of damage and missed rent payments caused by troublesome tenants. Credit checks are a great tool for landlords to evaluate a renter’s financial capabilities, but often don’t give a complete picture of their suitability. Instead, try using an all-in-one tenant screening metric like liv.rent’s Trust Score. This complete tenant screening tool factors in tenants’ income & employment verification, income-to-rent ratio and public court records to provide a more accurate report of their quality as a renter. It’s also a good idea to have a detailed list of questions ready to ask any applicants.

3. Study up on tenancy laws — Each province has its own guidelines protecting tenants during the rental process. Be sure to consult your province’s residential tenancy act to familiarize yourself with what is and is not permitted. To help first-time landlords make sense of Canada’s different rental laws, liv.rent has compiled a handy Landlord Resource section of our blog.
4. Share your listing to reach more renters — Marketing is key to filling your unit as efficiently as possible. One way landlords can expand their reach is to use a platform that allows for easy listing sharing. On liv.rent, landlords can quickly share their listing to Craigslist, Facebook Marketplace and Kijiji with just a few clicks. You can read more on liv.rent’s marketing features here.
5. Use a checklist — There’s a lot that can be missed throughout the rental process, particularly if it’s your first time renting out property. To help make sure you don’t miss any important steps and are protecting yourself as you’re renting, it’s a good idea to have a checklist on hand for things like preparing and inspecting the rental property, advertising your listing, and screening tenants.

Renting your basement suite on liv.rent

There are plenty of advantages to renting your basement suite – or any type of unit – on liv.rent. Designed specifically for modern landlords in Canada, this all-in-one platform has digital tools for every step of the rental process. In addition to the Trust Score, landlords can post unlimited listings for free as well as access time-saving features like built-in sharing and digital contracts & rent payments. For first-time landlords in particular, things like a centralized inbox for tenant communications and income statements can help you stay organized while maximizing your profits.

Landlords on liv.rent also benefit from our multi-layered verification processes for renters. As part of our commitment to building a safe & trusted rental community, we request renters upload documents to verify both their identity and income, as well as optional social media verification for an extra layer of security. When renters apply to your listing, you’ll be able to see their verification status with a handy checkmark to let you know that it’s safe to proceed.

Ready to get started? Here’s a quick video on how to post your unit for rent on liv.rent:

FAQ: How to rent out your basement suite

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Table of Contents

Can I rent my house if I have a mortgage in Canada?

If you’re considering renting out a house with a mortgage, you’re probably in one of two situations: either you’re looking to rent out a room in your primary residence, or you’re planning on purchasing a second property with the sole purpose of renting it out. In the eyes of lenders, these are very different cases, as the former is deemed an Owner-occupied mortgage, while the latter is a Non-owner occupied mortgage, which may be subject to the same rules and higher rates of a commercial mortgage.

Owner-occupied mortgage

Some lenders include conditions within the mortgage agreement that state that the property must be owner-occupied, meaning that the homeowner must reside on the property at all times. This is typically seen as a measure to prevent borrowers from defaulting on their loans, since they’ll still be present on the property. If you’re interested in renting out your entire property and living elsewhere, you’ll likely need to talk to your lenders about attaining a new mortgage.

Homeowners with an owner-occupied mortgage will generally face no issues in renting out part of their property, such as a basement, laneway house, or room. Nevertheless, it’s always best to notify your lenders in advance of any changes in occupancy, or at least consult your mortgage terms to ensure you’re not breaking any rules.

Non-owner-occupied mortgage

For prospective landlords interested in renting out an entire property while living elsewhere, you’ll need to make sure you have a non-owner-occupied mortgage. Since these are considered to be investment properties rather than primary residences, lenders may have stricter requirements for potential homeowners.

Non-owner-occupied properties are generally subject to the same restrictions as commercial mortgages, meaning that lenders may require a larger down payment, in order to secure their loan. For landlords looking to grow their portfolio, ensuring that your rental property’s mortgage allows for the unit to be non-owner-occupied is key.

Can I rent out my property without telling my mortgage lender?

Renting out your house without telling your mortgage lenders could jeopardize the agreement, leading to penalties in the form of costs and fees. If you find that the terms of your mortgage no longer meet your needs, homeowners are able to break or renegotiate their mortgage contract before the end of the term. This is typically done because another lender is offering a lower rate, but also applies to property owners looking to rent out their units.

For those looking to rent out part of their home under an owner-occupied lease, you’re likely in the clear – although it’s still smart to talk things over with your lender first, as they may require you to purchase additional insurance. While it’s a good idea to confirm with your lender that you’re using the property for this purpose, it isn’t strictly necessary.

On the other hand, if you already have a mortgage in place and are planning on renting out the property, you’ll first need to contact your lenders to make sure you’re within your rights to do so. Lying to your lenders or failing to disclose that you’re renting a property when you’re on an owner-occupied mortgage contract could constitute occupancy or mortgage fraud, so it’s best to be sure before you convert your home into a rental property.

How to rent out your home when you still owe a mortgage

So long as you adhere to the rules above and are upfront with your lenders, renting out your house with a mortgage is no more complicated than any other rental arrangement. In fact, the majority of landlords currently have a mortgage, using their rental income as a way to offset their monthly payments and other expenses.

For starters, you’ll need to evaluate how much rental income you’ll need to cover your monthly mortgage payments and ideally make a profit on your property. Entering information like your down payment amount and mortgage terms, as well as income & expenditures into a rental profit calculator is a great way to figure out what to charge for rent, but there are other factors to take into account as well.

When listing your home for rent, you’ll need to take into account your property’s location, unit type, features, and other factors when deciding how much to charge for rent and who you’ll market to. Have a look at rent reports for your area as well to get a sense of average prices for similar units.

Owning a rental property is a fantastic investment for those willing to put in the work. From screening tenants to staying up-to-date on rental laws, there’s a lot more to being a landlord than meets the eye. For landlords looking for an easier way to rent, there’s liv.rent – Canada’s go-to all-in-one rental platform and landlord productivity tool. From posting & sharing listings to signing contracts and receiving rent payments, liv.rent lets you do everything in one convenient, easy-to-use platform.

FAQ: Renting out your house with a mortgage

First-time landlord resources & checklists

If you’re considering renting out your property for the first time, it’s best to come prepared. Being a landlord is an excellent way to generate a second stream of income, but doesn’t come without its fair share of challenges.

We’ve compiled a list of resources for those considering renting out their home, as well as checklists for helping you navigate your first rental arrangement with ease.

Resources & guides

• The Complete User Guide To liv.rent For Landlords & Property Managers
• Airbnb vs. renting: which is more profitable?
• Landlord Guide: Rental Property Tax Deductions In Canada
• Should you hire a property management company?
• The best landlord apps for easier renting

Checklists for first-time landlords

• Rental inspection checklist for landlords
• Checklist 1: Preparing the rental property
• Checklist 2: Advertising the rental property
• Checklist 3: Screening tenants
• Checklist 4: Signing the lease agreement
• Checklist 5: Move-in checklist

Looking for an easy way to find tenants fast and maximize your profits from your rental property? See how liv.rent’s rental management & marketing features can help.

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Subscribe to receive the latest tenant & landlord tips and get notified about changes in the Canadian rental market.

>> Stay up-to-date on the average rent in Vancouver, Toronto and Montreal: Rent Reports.

The post Landlord guide: renting out your house with a mortgage appeared first on liv.rent blog.

When to do a rental walk-through inspection

At a minimum, most landlords will perform a walkthrough inspection of their rental property prior to the tenant moving in, and at the end of the tenancy as they’re moving out. The purpose of these inspections is essentially to gauge the condition of the property and various items within at the beginning and end of a tenancy, in order to determine whether or not repairs or cleaning are needed.

In provinces like Alberta and B.C., these inspections are required by law, and come with additional stipulations governing how and when landlords are to perform these walk-throughs. In other provinces such as Quebec, rules are less clear – but we’d recommend performing both a move-in and move-out inspection, as a minimum.

Additionally, some landlords may wish to schedule periodic checks throughout the course of the tenancy to ensure that everything is well maintained. In most provinces, landlords are permitted to enter the unit once per month for the purpose of inspecting the unit, with proper notice given to the tenant prior to entry. Generally, landlords must provide 24-hours notice before any inspection.

How to do a walk-through inspection using a rental inspection checklist

Landlords performing a walk-through inspection of their rental unit must follow a set of protocols that differs slightly from province to province. Generally, landlords will use a rental inspection checklist that contains space for an assessment of the condition of each item at move-in and move-out. This form must also contain key information like the property’s address, the landlord’s contact information, names and signatures from both parties, and the date the inspection was performed, among other things.

The inspection process is performed differently at move-in and move-out, so let’s quickly break down what each process will look like for Canadian landlords.

How to do a move-in inspection

Move-in inspections should always be performed prior to the new tenant moving in, and after the previous tenant has vacated the property. The unit itself should be empty and free of all furniture, and in an appropriate state of cleanliness so that individual items on the condition report are clearly visible and in good repair.

Here’s a step-by-step breakdown of how the inspection process is performed:

1. Schedule the inspection – Landlords are responsible for arranging the inspection and notifying the tenant accordingly. The initial move-in inspection is typically conducted at the time of moving in, at a time that works for both parties. If a mutually agreeable time can’t be reached, landlords must give a written offer suggesting a date and time. If this still fails, the landlord may perform the inspection on their own and provide their tenant with a copy of the completed and signed inspection report. If this is the case, the tenant may not be able to dispute damages at the end of the tenancy since they weren’t present to inspect the property themselves. Tenants may send a representative to complete the move-in inspection if they’re unable to make the appointment.
2. Download a rental inspection checklist – In most provinces, landlords must download a report listing out all of the rooms and items that must be inspected during the walk-through. While standard condition inspection reports are generally available through each province’s tenancy branch, landlords may also use their own forms so long as they contain the requisite information.
3. Conduct the inspection – Accompanied by the tenant or their representative, landlords must walk through the unit and note the condition of each item. It’s good practice to record a general condition such as “good” or “poor”, in addition to specific damages such as rips in the carpet or scratches on a window. Taking photos of any areas of concern is also a great idea so that you have evidence in case of any disputes later on.
4. Sign the completed rental inspection checklist – Once the walk-through inspection is complete, both parties must sign and date the completed form. Tenants must look over the landlords’ report and notes, and make clear any disagreements or thoughts they have on individual items before signing.
5. Provide tenants with the finalized report – Within a set timeframe (typically one week), landlords must give their tenants a copy of the completed rental inspection checklist with both parties’ signatures.

How to perform a move-out inspection

Similar to move-in inspections, move-out inspections come with a set of rules and procedures for how landlords are to schedule and facilitate the walk-through.

Here’s a quick breakdown of the move-out inspection process using a rental inspection checklist:

1. Schedule the inspection – The same rules apply to move-out inspections compared to move-in inspections. Landlords are responsible for scheduling a date & time that works for both parties, verbally or in written form. Landlords may still perform the inspection alone if the tenant or their representative are unable to attend after repeated attempts to schedule an inspection.
2. Bring the rental inspection checklist – Landlords must use the same condition inspection report or rental inspection checklist from the move-in inspection in order to compare the condition at the beginning and end of the tenancy.
3. Conduct the inspection – Just like at the beginning of the tenancy, landlords must walk through the unit with the tenant and note any changes in the condition of each item. Note the general condition and any specific damages and if you took photos during the move-in inspection, reference those to justify your classification of each area.,
4. Sign the completed rental inspection checklist – Once the walk-through inspection is complete, both parties must sign and date the completed form. Tenants must look over the landlords’ report and notes, and make clear any disagreements or thoughts they have on individual items before signing.
5. Provide tenants with the finalized report – Within a set timeframe (typically one week to fifteen days), landlords must give their tenants a copy of the completed rental inspection checklist with both parties’ signatures.

Rental inspection rules by province

Specific rules for rental inspections are governed by individual provinces in Canada, and thus can vary based on where you’re renting. To help clear up any confusion on this subject, let’s look at each province: British Columbia, Ontario, and Alberta, to see how key items compare.

British Columbia

• Required notice to enter unit: 24 hours written notice, landlord may enter once per month to inspect
• Mandatory or not: Inspections are mandatory at the start and end of the tenancy
• Rental inspection checklist: Must use a printed copy of either the standard Condition Inspection Report, or a form that contains: full names of the landlord, the tenant and the tenant’s representative (if applicable), the unit’s address, the date the tenancy begins, the landlord’s address, and the date of the walk-through inspection.
• Moving in: Inspection must take place once the unit is empty, after the previous tenant has moved out. Inspections typically take place the day of move-in, but don’t need to so long as the date and time work for both parties.
• Moving out: Tenants must move out by 1:00 pm on the final day of the lease agreement. Tenants must clean the unit and remove all furnishings to prepare for the inspection.
• Providing copies of the rental inspection checklist: Landlords must provide a copy of the move-in inspection checklist within 7 days of the inspection, and a copy of the completed move-out inspection report within 15 days.

Ontario

• Required notice to enter unit: 24 hours written notice, landlord should make a reasonable effort to limit the number of entries for inspections.
• Mandatory or not: Inspections are not mandatory in Ontario, but are highly recommended.
• Rental inspection checklist: It’s recommended that landlords use a standardized condition inspection report to perform inspections, but not mandatory by law.
• Moving in: Inspections must take place once the unit is empty, after the previous tenant has moved out. Inspections typically take place the day of move-in, but don’t need to so long as the date and time works for both parties.
• Moving out: Tenants must move out by midnight on the final day of the lease agreement. Tenants must clean the unit and remove all furnishings.
• Providing copies of the rental inspection checklist: Landlords should provide tenants with signed copies of the completed move-in/move-out inspections.

Alberta

• Required notice to enter unit: 24 hours written notice, no specific guidelines on how often landlords may enter.
• Mandatory or not: Inspections are mandatory in Alberta at both the beginning and end of a tenancy.
• Rental inspection checklist: There are no provincially regulated forms in Alberta. Landlords should still use a standardized checklist with all the requisite information
• Moving in: In Alberta, inspections must take place within a week prior to or after moving in. Inspections should take place once the unit is empty, after the previous tenant has moved out. Inspections typically take place the day of move-in, but don’t need to so long as the date and time works for both parties.
• Moving out: Tenants must move out by noon on the final day of the lease agreement. Tenants must clean the unit and remove all furnishings. Inspections must take place within a week of moving out of the unit.
• Providing copies of the rental inspection checklist: Landlords should provide tenants with signed copies of the completed move-in/move-out inspections.

Downloadable rental inspection checklist

A rental inspection checklist is a document intended to guide landlords through the walk-through process, ensuring they aren’t missing any important items throughout the unit. This document should be broken down into individual rooms/areas of the unit, such as entryways, bedrooms, bathrooms, storage areas, basements, and so on.

Within each room, there should be a comprehensive list of standard items such as flooring, windows, ceilings and switches/plugs, as well as space to write in features unique to the unit such as countertops or heating units.

If your province has a standardized rental inspection checklist, it’s a good idea to utilize that – however, in many cases, this resource is not provided.

If you’re looking for a comprehensive condition report that can be used for walk-through inspections in Canada, liv.rent has created a downloadable Rental Inspection Checklist complete with every item you’ll need to look over, plus options to add additional rooms and items. You can download your copy here.

FAQ: Move-in & move-out inspections

What happens during a landlord inspection?

During an inspection, whether it occurs at move-in, move-out, or during the tenancy, landlords and tenants will walk through the unit together to look at the condition of individual items. Generally, this is reported in an inspection checklist for reference.

The above sections should give you a better idea of the exact proceedings during these types of inspections.

What do landlords look for at an inspection?

Landlords will typically examine the general condition of items to evaluate whether damage has been caused to the unit, as well as record specific notes and cases of damage or wear to the unit.

How long does a landlord inspection take?

A walk-through inspection can take as little or as long as is required to get a detailed look at the property’s condition. The exact time depends on the size of the unit and what type of inspection is being performed, however landlords should try to limit time spent in the unit so as not to interfere with the tenant’s enjoyment of the space.

Can landlords do random inspections?

In nearly every Canadian province, landlords must provide a minimum of 24 hours written notice before entering the unit for an inspection.

How often can a landlord do an inspection in BC?

Landlords in B.C. may enter the unit once per month for the purpose of an inspection.

What can a landlord do during an inspection in Ontario?

During an inspection, landlords can only perform actions that were specified in the written notice they gave to the tenants. This usually means determining the condition of items, whether or not repairs are necessary, and taking pictures/notes.

What does a landlord need to do before a tenant moves in?

Prior to the new tenant moving in, landlords should ensure that they have conducted a move-out inspection with the previous tenant, documenting any damage and arranging repairs or cleaning as necessary. The unit should be empty and in a good state of repair and cleanliness prior to the new tenant’s arrival.

While the unit is still empty, the landlord must also perform a move-in inspection with the new tenant.

Is a move inspection required in Ontario?

By law, move-in and move-out inspections are not required in Ontario. Landlords should still perform inspections regularly to keep a record of the condition of their unit and avoid disputes later on.

Can a landlord charge for cleaning after you move out?

If a tenant leaves the unit without cleaning it adequately, the landlord may retain part or all of the security deposit to cover the cost of cleaning. Exact guidelines for this vary by province.

Can landlords take photos during an inspection in Ontario?

Landlords may only take photos of the unit so long as they have provided the proper written notice to the tenant if the tenant’s personal possessions are present in the unit.

Rethink The Way You Rent

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What is the difference between Airbnb vs. renting?

Renting your unit as an Airbnb vs. a traditional rental has a few key differences. While both obviously involve temporarily allowing renters to occupy the unit in exchange for recurrent or one-time payments, they’re differentiated by the length and terms of the rental agreement, revenue potential, associated costs, regulations governing them, and tax practices. Let’s take a look at each of the above to provide a better idea of what each strategy entails.

Length of the rental agreement

This is the main differentiating factor between Airbnb vs. traditional renting. Airbnb functions as a short-term vacation rental platform, whereas normal renting typically sees contracts ranging from one month to a year. In most Canadian provinces, the norm is a one-year lease – meaning more stability, less vacancies, and lower turnover compared to Airbnb.

Revenue and earnings

Payment frequency, method, and amount all differ between Airbnb vs. traditional renting as well. Since Airbnb is used for short-term vacation rentals, payment functions similarly to a hotel. Stays are generally paid for on a nightly basis, commanding a higher daily rate due to a number of factors.

By contrast, traditional rentals take place over a set duration, with payments collected once during each given period – typically once per month. In general, this will typically result in a lower rent price per night compared to Airbnb, but this doesn’t take into account the assurance of having a steady tenancy

Estimated costs

Where traditional renting begins to look much more appealing is in the associated costs compared to renting via Airbnb. In addition to a standard service fee charged by the Airbnb platform, typically 3% of the booking subtotal, hosts are also responsible for cleaning between each guest, which adds up quickly as well.

Add on the regular costs associated with maintaining a rental property, and the costs of renting an Airbnb can quickly overwhelm the potential profits.

By contrast, traditional renting involves comparatively fewer costs for upkeep. For one, tenants are primarily responsible for the upkeep of the unit – cleaning, replacing small items like lightbulbs, and generally furnishing the unit unless otherwise specified.

Rules & regulations

Many landlords may not even be able to rent out their unit as a vacation rental, since some buildings and stratas – and even municipalities, in some cases – prohibit short-term rentals entirely. In both Vancouver and Toronto, for example, short-term rental hosts are required to obtain a license to operate, further complicating matters for landlords.

Traditional renting, while still heavily regulated in terms of living standards and tenancy laws, is permitted in the vast majority of situations.

Tax implications

Taxation for Airbnb hosts is a complicated subject, as rentals lasting less than 30 days may be subject to GST/HST in Canada. Much like with renting, Airbnb hosts will need to carefully keep track of both their current and capital expenses to report on their yearly tax return.

For both vacation rentals and traditional rentals, landlords will need to differentiate between Rental Income and Business Income, and report their earnings accordingly.

Pros and cons: renting out your unit as an Airbnb

As with any facet of renting, there are notable benefits and downsides to vacation rentals. Let’s explore the pros and cons of renting out your unit as an Airbnb in more depth now.

Pros of vacation rentals:

• Higher earning potential — Looking just at gross income, Airbnb tends to yield higher returns since the nightly rate is nearly always much higher than it would be for a traditional rental property. As we’ll see though, there are a few caveats in this regard and net income may not always be higher with Airbnbs.
• Flexibility — For landlords who are wary of a long-term rental commitment, Airbnb offers a few benefits. Since rental terms typically last from a night or two to a few weeks in duration, it’s easy to adjust the nightly cost to align with seasonal trends and busier periods. This can also be a positive when dealing with problematic tenants, as any potential issues will likely be resolved once the short-term rental is over.
• No lease agreement — For landlords who may want to use their property for their own purposes, being locked into a fixed-term lease could be a problem. Once a lease is signed, it can only be ended for a few important reasons, such as substantial renovations or for the landlord’s use. Ending a lease also requires plenty of advance notice, whereas Airbnb requires less commitment.
• Built-in insurance — Vacation rental platforms like Airbnb usually have a “host guarantee”, meaning that landlords are financially safeguarded from expenses associated with damage caused to their unit.

Cons of vacation rentals:

• More upkeep required — Vacation rentals require constant upkeep, with cleaning between every new tenant. Hosts are typically also responsible for restocking essential items such as soap and toiletries, similar to a hotel. For homeowners looking for a passive source of income, this may quickly prove to be too much work.
• Higher expenses — If you don’t want to clean the unit yourself between each tenant, paying for cleaning can quickly add up to a significant expense, taking away from your income. Combine this with the built-in service fee on many vacation rental platforms, and it’s easy for your profit margins to slip.
• Must rent furnished — Vacation rentals don’t give landlords the option of choosing whether to rent their unit furnished or unfurnished. While this might not be a huge issue for some, the extra liability and effort involved may turn some away. The most successful Airbnbs also provide bonus amenities, like pools & hot tubs for example, which require upkeep of their own.
• Less stability — Though nightly income tends to be higher with vacation rentals, it’s also very likely that your unit will be unoccupied some nights – particularly during down seasons. Bear in mind that on days where your unit is empty, you won’t be making any income.

Pros and cons: renting out your unit as a long-term rental

The positives and negatives of operating a long-term rental property are much better understood by most would-be landlords. Let’s look now at the pros and cons of traditional renting.

Pros of long-term rentals:

• Consistent income — As opposed to the uncertainties of short-term rentals, longer-term contracts provide certainty in the form of consistent rental income. This becomes particularly important in times when interest rates are high and investors’ margins are too slim to withstand the risks of lengthy vacancies.
• Less upkeep — Once your unit has been filled, there are comparatively less duties landlords will need to perform on a day-to-day basis than with a short-term rental. Though you’ll need to make sure you’ve done your due diligence in screening tenants thoroughly, your renters will be primarily responsible for maintaining the unit throughout the tenancy.
• Lower turnover — The assurance of an ongoing tenancy is of benefit to many landlords, as filling vacancies repeatedly can be both costly and time-consuming.

Cons of long-term rentals:

• Less earnings potential — Looking purely at the average nightly rate, traditional rentals typically bring in less rental income than vacation rentals. However, this is only the case of you’re able to have your unit rented for practically every day of the month, which isn’t always a reality for landlords using Airbnb.
• Less flexible — While many landlords prefer the certainty of a long-term lease, others may not like being locked into a lengthy contract.

Airbnb vs. renting: which is more profitable?

Ultimately, the question on most real estate investors’ minds is which strategy, Airbnb vs. renting, yields a higher ROI?

Unfortunately, there’s no clear-cut answer for this. Instead, it’s better to look at this topic on a case-to-case basis. While Airbnb can offer higher earning potential to homeowners whose rental properties are located somewhere with consistent, year-round interest, this often isn’t the case. Add in the many fees and expenses associated with vacation rentals, not to mention the added work, and it becomes clear that making passive income from a vacation rental isn’t as easy as many would believe.

Many of the most time-consuming tasks landlords face – like marketing, cleaning, and repairs – need to be repeated far more frequently with short-term rentals, since the turnover rate is much higher. This workload may not suit every landlord, and it’s worth keeping in mind that competition among Airbnb hosts is much higher as well, especially in areas with a large tourist presence.

If you’re looking to keep your passive income stream as passive as possible while earning steady rental revenue, renting on a longer-term basis is likely the better option for you. While on the surface, earnings from vacation rentals can be higher, this doesn’t factor in the 3% fee, constant risk of vacancies, slow periods, and so on.

It’s also worth mentioning the myriad digital rental platforms that have evolved to further simplify landlords’ rental operations, making them both easier and more profitable. Consider liv.rent for example. This all-in-one landlord productivity tool has intelligent solutions for everything from listing & advertising to digital contracts and rent payments – helping busy landlords rent their properties faster while saving time on key functions.

How to choose between Airbnb vs. renting

For investment-minded landlords, there are a few key concerns to take into account when deciding how best to rent out your property:

• Market rates — What are average rent prices like in your area? How does this compare for short-term and long-term rentals? While some areas may be exceedingly popular with vacationers, they may not garner as much interest from year-round renters – and vice versa.
• Location — Does the area in which your rental property is located have adequate demand for short-term rentals? Is this demand seasonal? If there isn’t consistent demand, it may be easier and more profitable to rent your property on a longer-term basis.
• Condition of rental property — It’s much harder to make your property stand out as a vacation rental than as a long-term home for renters. If your unit is older or lacks the wow factor many seek from Airbnbs, renting it as a home rather than a temporary destination is likely a better idea if you don’t want to pay for costly renovations.
• Local legislation — Before all else, make sure that vacation rentals are permitted in your area/building. It’s not uncommon for stratas and apartment buildings to disallow short-term rentals, so double-check that you aren’t breaking any rules by doing so. If you’re in Vancouver or Toronto, or another city that requires it, you’ll also need to ensure that you’re licensed to rent your unit on a short-term basis.
• Workload — How much time are you able to spend on your rental property? While long-term rentals involve more time spent screening tenants and arranging lease agreements and rent payments, the constant upkeep and marketing required by short-term rentals take a lot of time out of landlords’ already busy schedules.
• Bottom line — If all goes perfectly, Airbnbs can certainly yield a considerably higher ROI than long-term rentals. With that being said, this is far from the norm as it would involve having your unit rented practically every day of the year. The stability and consistent rental revenue from long-term rentals, while generally lower, provides peace of mind for investors worried about breaking even.

Should I turn my rental property into an Airbnb?

If you’re considering switching from traditional renting to Airbnb, it’s worth considering the factors above before taking any action. Many landlords simply see the higher earnings potential and think that converting their property to a vacation rental is the obvious solution, but this isn’t always the case.

As we’ve noted, this decision should primarily depend on how much time you have to dedicate to maintenance, upkeep, and marketing, as well as on the property itself. If you think your property would be able to command consistent, year-round interest and you don’t mind spending a bit more time on your property investment, short-term rentals may be the right choice.

For landlords who want their renting to be as automated and efficient as possible, liv.rent offers an excellent, entirely digital alternative that still allows you to maximize your profits. Many of the most time-consuming tasks for landlords are simplified with this all-in-one app, with the ability to carry out the entire rental process in one easy-to-use platform. Best of all, liv.rent is free to start – with a Growth Plan designed for landlords who want to take advantage of more advanced marketing and tenant screening features.

FAQ: Airbnb vs. renting

Can an investment property be used as an Airbnb?

This depends on your local legislation, as well as your building/strata’s rules. Before renting out your unit on a short-term basis, always consult with local rental and business laws and ensure you’ve attained the required licenses, if applicable.

Can running an Airbnb be profitable?

Operating a vacation rental property can certainly be profitable for landlords who are willing to put in the time and effort. Running a successful Airbnb takes skilled marketing and a good deal of upkeep though, so landlords should evaluate their own priorities before committing to this type of rental.

Is Airbnb a good investment?

Under the right circumstances and with enough work, Airbnb can be a great investment for landlords who want to maximize their ROI.

Have a look through the previous sections first though, as there’s more than meets the eye when it comes to vacation rentals.

How much do Airbnb hosts make per month on average?

It’s hard to gather an accurate average for rental revenue on vacation properties since every unit is different. It’s best to have a look at Airbnbs in your area to see how much hosts are charging, as well as explore average monthly rent prices to compare.

Is renting out an Airbnb worth it?

Again, this question really depends on what you hope to gain from your investment property and how much time you’re willing to spend to make your unit profitable. For many landlords, renting is a hands-off second income stream, so the prospect of constant turnover and the risk that comes with frequent vacancies isn’t worth it.

What is the downside of Airbnb?

Airbnb can be a great option for the right landlord, but it isn’t without its downsides. For one, the risk and amount of effort required to maintain a successful short-term rental operation are beyond what many landlords are willing to accept.

You can see our complete list of pros & cons for vacation rentals here.

Are you protected when renting on Airbnb?

One of the biggest fears associated with Airbnb is the potential for damage by short-term tenants. Thankfully, Airbnb does provide free insurance against damage through their AirCover program, up to $3 million USD.

Rethink The Way You Rent

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The post Airbnb vs. renting: which is more profitable for landlords? appeared first on liv.rent blog.

The numbers

Background

The landlord

• Number of listings managed: 1
• Rental platforms used previously: Facebook Marketplace, Craigslist
• Management software used currently: liv.rent
• Employment status: Employed full-time
• Primary concerns: Safety, saving time, finding a suitable match

The landlord in this case was renting out a two-bedroom partial house in Vancouver’s Riley Park-Little Mountain neighbourhood, seeking a source of passive income without the stress of troublesome tenants. The listing was originally posted to Facebook Marketplace, as well as liv.rent’s own Facebook Group.

In the posting, the landlord expressed that she would prefer a family or young professionals, and that her main priority was having responsible tenants who she could trust to pay rent on time and take care of the unit.

“I was so grateful to learn about liv.rent. My colleagues already knew about it, but I had no idea how much help it would be!“

The tenants

• Budget: $2,200
• Areas of interest: Cambie Village, Mount Pleasant, Point Grey/U.B.C.
• Reason for moving: Relocating for work opportunity
• Employment status: Employed full-time
• Primary concerns: Safety, budget, securing a home before arriving in Canada

A family of renters reached out to liv.rent’s support team, looking for a place to rent in Vancouver for under $2,200 per month. These tenants were moving to Canada from abroad, and had been continually inquiring to two-bedroom units near the University of British Columbia with few results to show for it.

Though their budget was far below the city-wide average rental rates, our team of Rental Experts accepted the challenge and promised they’d do all they could to find a suitable property. The tenants were almost set to depart for Vancouver, and needed a place as soon as possible. The family was relocating for a work opportunity, with the husband/father having previously worked in a globally-renowned university.

How they did it

A perfect match

While researching listings for potential outreach, liv.rent’s client success team came across a two-bedroom partial house for rent in Vancouver for a lower-than-average monthly rent price. Shared to liv.rent’s Facebook Group, the listing had only been available for a short time but had already been saved by a number of interested renters. Recalling that we had recently spoken to a family of tenants whose preferences aligned nearly perfectly with this listing, we contacted the landlord by phone, leaving a voicemail to let them know that a family of qualified renters was interested in the unit, highlighting that they had already verified their key information for the landlord’s peace of mind. liv.rent isn’t a placement agency, but we always try to assist in situations such as this one where there’s an opportunity to connect like-minded landlords and tenants.

The landlord returned our call almost immediately, sympathizing with the renters’ situation and curious to learn more about their suitability as tenants. After the landlord expressed frustration with the typical rental process and the number of time-wasting replies on other sites, our Rental Experts explained how liv.rent could simplify their renting with built-in tenant screening, marketing, digital contracts & rent payments, and other automation features.

Getting verified

While still on the line with our support representative, the landlord created her free Essentials account. She then filled out her listing’s details using liv.rent’s pre-loaded template, attaching photos of different angles of the unit, as well as a pre-recorded video tour since the tenants were renting from abroad. She proceeded through the verification processes, uploading a picture of her photo ID and land title documents.

The unit itself was a two-bedroom, one-bathroom partial house with a private entrance – and best of all, it was located in a family-friendly neighbourhood with easy public transit routes to U.B.C., perfect for the young family.

In just over 15 minutes, our team had successfully verified the landlord’s account and address, and her listing was ready to be shared! Using the easy built-in sharing features, the landlord was able to invite the tenant to apply directly, starting a conversation over liv.rent’s instant chat to streamline communication.

Simplifying the tenant screening process

After reviewing their application and asking the prospective tenants some preliminary screening questions, the landlord felt ready to continue with the rental process. Although the renters didn’t yet have a credit history in Canada, the Trust Score and liv.rent’s identity & income verification processes gave the landlord peace of mind to proceed. As the tenants were currently in Latin America, both parties had to work around a 4-hour time difference. Using liv.rent’s instant chat though, they were able to find a time slot that worked for everyone and arranged for a Zoom interview.

Virtual tours make renting from abroad a breeze

During a half-hour video call, the landlord asked a series of questions to get to know the renters better, answering any questions they had as well. While still on the call, the landlord performed a video walk-through of the property, showing the tenants each room as while as the exterior of the unit and the surrounding neighbourhood. The tenants were thrilled with what they’d seen, and the landlord was satisfied that she’d found the perfect tenants for her unit.

Making it official with digital contracts & rent payments

With both parties in agreement, the landlord created a lease agreement using liv.rent’s auto-filled lease templates, generated in seconds using the information they’d already entered onto the platform. Next, the landlord sent a Payment Request for the rent deposit through liv.rent, which the tenant promptly and securely paid directly on the platform.

As easy as that – the lease agreement was complete and both the landlord and their new tenant had found a great match in under 24 hours from the original listing being posted.

How liv.rent helped

From start to finish, this case study shows how liv.rent’s digital tools were key to this landlord renting out their listing in 24 hours, ensuring both parties were able to proceed safely and easily. Renting online can normally pose a number of threats: the tenants might not be who they say they are, their documents may not be valid, or they might not be as interested as they say they are. With liv.rent, the guesswork was taken out of the equation as the tenants had already taken the time to verify their paperwork – showing that they were a.) interested, and b.) qualified to rent.

Once posting their listing on the liv.rent platform, the rental process took mere hours, as both parties were able to do everything they needed in one convenient place. With tenant screening features built right into the platform in the form of the Trust Score and liv.rent’s verification processes, the landlord was able to easily gauge the renters’ qualification in just minutes, rather than waiting for a traditional credit check. Then, using digital contracts and rent payments, the remainder of the rental process took less than an hour.

Since there was a time difference involved and the renters weren’t able to see the unit in person before signing a lease, liv.rent’s support for up to 20 photos, as well as video uploads, was integral to properly preview the property. The instant chat feature also played a big role in ensuring streamlined communication throughout, rather than constantly waiting for emails to send or communicating across different messaging apps.

“liv.rent was a game-changer. From verifying my listing to creating & signing a lease – everything was so easy. I’m never going back!“

Takeaways from this case

While 24 hours is definitely on the lower end of the time it takes to rent out a unit, there are three key things landlords can take away from this case study on renting out their listing:

1. With the right tools, renting online can be both safe & easy — Many landlords are wary of tenants renting from abroad, preferring face-to-face interactions over digital ones. This case showed how with liv.rent, landlords and tenants can establish a similar connection through mutual verification, instant chat, and video uploads/tours.
2. The right tenants are worth making an effort for — Though their listing was originally posted to Facebook Marketplace, this landlord took advantage of liv.rent’s features in order to make communicating with these prospective renters easier. Doing this allowed them to make better-informed decisions about who they were renting to, ultimately leading to a perfect match and a happy, long-lasting tenancy.
3. Mutual trust is key to successful renting — The primary factor in this case study for renting out a listing in 24 hours was trust. Since both parties were absolutely sure that the other was trustworthy and a suitable match, the rental process was able to proceed much faster than usual.

Rethink The Way You Rent

Not on liv.rent yet? Experience the ease of digital applications & contracts, verified tenants & landlords, virtual tours and more – all on one platform. Sign up for free or download the app.

Subscribe to receive the latest tenant & landlord tips and get notified about changes in the Canadian rental market.

>> Stay up-to-date on the average rent in Vancouver, Toronto and Montreal: Rent Reports.

The post How a Vancouver landlord rented out their listing in under 24 hours with liv.rent appeared first on liv.rent blog.