newb landlord living with the tenants, what do i need to know?

TomC

TomC

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Hey,

I'm about to rent out a room or two to some random ppl. I'll be living under the same household as them. I have experience living with others in frat houses, university residence...I don't particularly like it, but I can handle it.

I would appreciate some input on the following as I'm sure there are many veteran landlords out there:

1) What kind of paperwork do i need to cover my ***?
- I have a copy of a makeshift lease agreement ...
- I have another copy of a lease agreement and application form from OREA, though I don't think I can use this as I'm not a part of the organization...

2) How should I screen them
- I've done face-to-face viewings with a few of them so far
- Requested pay-stubs and proof of employment
- Character references?...i suppose this is difficult because it may be easy to fabricate
- How necessary is a criminal background check?

3) Any other additional tips?

Fanks in advance.
 
I have been a landlord for the past 4 years, both had tenants within my residence, and now have a complete house rented out.

I always have a lease to try and stipulate as much as possible in terms of rules, however with that being said the tightest leases are unfortunate simply because the landlord and tenant act really serves to protect the tenants not the landlords. IT can be very difficult once you get a problem tenant.

As for screening, some take credit checks, however some of my best tenants I did not even know until after move out that they had a consumer proposal, but they paid their rent month to month more on time then any tenants I have ever had. Personal reference checks are pointless in my opinion or landlord references as most times these can be fabricated by having an acting friend step in place. I like to make sure I have job references, pay stubs and the other thing you can do is ask for an account print off from there bank, it wont show extremely personal financial detail, but can show you if they have had a number of bounced cheques etc. I also find that gut feeling has played a massive role in selection of tenants. If something seems off trust your gut.

Lastly check with the landlord and tenant act I do believe that the tenant act does not cover roomates, its quite different in terms of the fact that notice may not be required to evict tenants etc, as I believe the act does not govern this type of living situation.

If you need any further help, let me know I can try and help as best as possible.

Jenn
 
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I have a copy of a fairly standard lease specifically designed for renting rooms as I have a rental property in Guelph. If you want a copy f it I can email it to you Tom. Just PM me an email address. You can add or subtract clauses as you wish and put in your own room rental rate. I also have an application form that you can get people to fill in prior to meeting them.

Advice wise I would say that if you're taking on a student then try to get the parents to underwrite their contract so you get paid. Try to get 12 months of post dated cheques. Also draw up a list of basic rules and post them in the house. A basic cleaning rota, silly things like reminding people to clean up behind themseles in communal areas, a communal cash kitty for buying household items like cleaning supplies, toilet roll etc, unless you decide to supply everything yourself.
 
One clause you might want to put in that we put in our rental agreement was that it required the rentor to get renter's insurance. That way if there is claim it goes under their name and not ours. It won't **** over your house insurance in the future lol

My finance prof also recommended this.
 
Assuming you will have a common laundry area...set up some rules regarding the use of and time of use of the facilities. We have a house in Oshawa and we are renting out the bottom half until we move back in.
The water/ electric bill is 4...let me repeat that ..FOUR times the amount in that house than in the one we live in. The washing machine and dryer and going constantly with little regard for time of use.
 
arent_we_sarcastic said:
Assuming you will have a common laundry area...set up some rules regarding the use of and time of use of the facilities. We have a house in Oshawa and we are renting out the bottom half until we move back in.
The water/ electric bill is 4...let me repeat that ..FOUR times the amount in that house than in the one we live in. The washing machine and dryer and going constantly with little regard for time of use.
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Yes, ppl have no regard for your utilities. I've had ppl rent my basement and they use double what I use. I know this cuz when they moved out, the utilities just drop
 
arent_we_sarcastic said:
Assuming you will have a common laundry area...set up some rules regarding the use of and time of use of the facilities. We have a house in Oshawa and we are renting out the bottom half until we move back in.
The water/ electric bill is 4...let me repeat that ..FOUR times the amount in that house than in the one we live in. The washing machine and dryer and going constantly with little regard for time of use.
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thanks, will do
 
LiNK666 said:
One clause you might want to put in that we put in our rental agreement was that it required the rentor to get renter's insurance. That way if there is claim it goes under their name and not ours. It won't **** over your house insurance in the future lol

My finance prof also recommended this.
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i've heard its generally the land lord that needs to provide rental insurance, plus my insurance company had warned me int he past that if i were to rent out the property, i need to change my own policy to accommodate renters...to cover my ***. Can anyone confirm or elaborate a bit more on this?
 
I'd suggest that if you're going to have rules (such as laundry times) that you follow them yourself too.

I lived with someone in a similar situation, and she had ALL kinds of rules. I'm fine with rules....I just wish she would've followed them too.

So if you say they can't do their laundry until after 7pm. That means YOU can't do your laundry after 7pm too.
 
CrazyKell said:
I'd suggest that if you're going to have rules (such as laundry times) that you follow them yourself too.

I lived with someone in a similar situation, and she had ALL kinds of rules. I'm fine with rules....I just wish she would've followed them too.

So if you say they can't do their laundry until after 7pm. That means YOU can't do your laundry after 7pm too.
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This thinking drives me nuts the person who owns the house can do what they want they are paying the bills.
 
Scuba Steve said:
This thinking drives me nuts the person who owns the house can do what they want they are paying the bills.
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Except, if you piss the roommates off they can do all sorts of things that'll screw you over.

And when you pay rent, you are "paying the bills" too. Just because you're paying rent doesn't mean you need to be subservient to the other person.

Oh and I've always carried renters insurance even when I lived with someone. Not sure if you need to adjust your coverage (as a landlord) but I would never want to make a claim under someone else's insurance like that.
 
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You need to protect the walls in your house, I pay a small extra premium because of the "risk" of having people in the home, but my lease states renters must cover contents insurance, (NOT YOU)...this covers all of their personal belongings in the event of a fire....but your walls are protected if they cause the fire...since I rent my whole house now (used to rent only part) I also have insurance that would pay me my rent earnings during the period of a house rebuild from fire.

Jenn


TomC said:
i've heard its generally the land lord that needs to provide rental insurance, plus my insurance company had warned me int he past that if i were to rent out the property, i need to change my own policy to accommodate renters...to cover my ***. Can anyone confirm or elaborate a bit more on this?
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I dont know why you guys are complaining about hydro/water use. If the unit you are renting does not have seperate hydro meter, then its an illegal suite and if the tenants ever take you to the housing tribunal, you have much larger issues to worry about then just hydro/water use. Same thing if a fire ever happens and insurance company finds out you were renting out an illegal suite.
 
twinn said:
I dont know why you guys are complaining about hydro/water use. If the unit you are renting does not have seperate hydro meter, then its an illegal suite and if the tenants ever take you to the housing tribunal, you have much larger issues to worry about then just hydro/water use. Same thing if a fire ever happens and insurance company finds out you were renting out an illegal suite.
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If they are living with you as a tenant (ie. just renting a room) it is not an illegal suite.

If they are renting the entire house, it is not an illegal suite.
 
I've done it before. Once it worked out wonderfully, and once it didn't...

In both cases, I adjusted my home insurance policy to cover the renter. I believe the extent of the change was to acknowledge that someone else would be entering the property, and using the facilities of the property. The price difference was very nominal, something like $2/mo. Of course, it wouldn't cover their ____ in the event of a break-in, or if the house burnt down.

CrazyKell is onto something - spelling things out in advance is a good policy. I wish I'd done this with my first roommate, where things went horribly.

If I recall, there is a different rights classification between tenants and boarders. In the case of a boarder (someone living with you), there is far more freedom to throw them out if things aren't working. You may want to check on the exact distinction.
 
KawasakiGal said:
You need to protect the walls in your house, I pay a small extra premium because of the "risk" of having people in the home, but my lease states renters must cover contents insurance, (NOT YOU)...this covers all of their personal belongings in the event of a fire....but your walls are protected if they cause the fire...since I rent my whole house now (used to rent only part) I also have insurance that would pay me my rent earnings during the period of a house rebuild from fire.

Jenn
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Do this. I think this is what we did in our rental property
 
Same rules do not apply for room renters....separate units and living within unit are 2 very different things. Insurance often doesnt care if its illegal my insurance was well aware and did not care as long as the risk was covered...it became too much hassle which is why the house is now rented as a single unit.....


twinn said:
I dont know why you guys are complaining about hydro/water use. If the unit you are renting does not have seperate hydro meter, then its an illegal suite and if the tenants ever take you to the housing tribunal, you have much larger issues to worry about then just hydro/water use. Same thing if a fire ever happens and insurance company finds out you were renting out an illegal suite.
Click to expand...
 
If I recall, there is a different rights classification between tenants and boarders. In the case of a boarder (someone living with you), there is far more freedom to throw them out if things aren't working. You may want to check on the exact distinction.[/QUOTE]

THis is true!
 
After seeing my mother go thru a tenant from hell. Work it in your lease that you have a way to kick them out with need be. My mom has it that she can kick them out when they've become a nusence and after the tenant taking her to arbutration 5 times(tenant loses), damaging the house, harrasing her with phone calls (live in the same house), she still doesnt have enough to warrant kicking her out according to the landlord and tenant board. Your lease is your safety net. Work it up and take it to a couple fellow landlords and see what they say about it.
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