So You Want To Be A Landlord & Rent Your Basement To A Student?
(January 05, 2015
)
Our urban and suburban real estate experts at THE BC HOME HUNTER GROUP are experts in every conceivable facet of our industry. Advising home owners with regards to rentals, having a "mortgage helper" and being a landlord is an every day occurence for us. We were once students and renters, a very, very long time ago and understand the issues surrounding being both a landlord and a tenant.
It's the perfect storm that is creating a great opportunity for owners or buyers of homes with basement suites to cash in by renting them out to needy students. But with that comes risk and responsibility.
The Landlords
We are all familiar with the sky high house prices in Metro Vancouver and our real estate team have advised countless home buyers and owners with regards to mortgage costs, financing and how potential rentals in their home or property can either pay a significant part of their mortgage or positive cashflow. The idea that they could have an international student rent your basement and pay them $1,000+ a month is very appealing to many.
"Sprucing up your basement" for a few thousand dollars is a good start if that is all you have to do. The only down side was the lack of privacy. Our advice for anyone considering renting out part of their home is to do your homework and be prepared to do the work and deal with the potential hassles that comes with being a landlord.
We have had many real estate clients that have financed their mortgages with homestay or local university students for the entire duration of their education. Beware, B.C. has some of the most horrific anti landlord laws in Canada and tenants have more rights than you are probably aware. Once again, do not hesitate to call or email our real estate team with your questions or concerns.
The Student
We are all aware of the many international students who flock to B.C. for their ESL and/or education and require a safe homestay for the duration of their stay.
For home owners who could use a little mortgage helper, renting a basement suite to a student can be the solution. But if you haven't done your homework, there can be tough lessons to learn. Here are some of our
There is always a major shortage of "affordable" housing facing many students in the Lower Mainland. Meantime, home owners or buyers are looking at potentially huge mortgage payments in Metro Vancouver's hot real estate market, and the need for "mortgage helpers" has never been higher.
It's the perfect storm that is creating a great opportunity for owners or buyers of homes with basement suites to cash in by renting them out to needy students. But with that comes risk and responsibility.
The Landlords
We are all familiar with the sky high house prices in Metro Vancouver and our real estate team have advised countless home buyers and owners with regards to mortgage costs, financing and how potential rentals in their home or property can either pay a significant part of their mortgage or positive cashflow. The idea that they could have an international student rent your basement and pay them $1,000+ a month is very appealing to many.
"Sprucing up your basement" for a few thousand dollars is a good start if that is all you have to do. The only down side was the lack of privacy. Our advice for anyone considering renting out part of their home is to do your homework and be prepared to do the work and deal with the potential hassles that comes with being a landlord.
We have had many real estate clients that have financed their mortgages with homestay or local university students for the entire duration of their education. Beware, B.C. has some of the most horrific anti landlord laws in Canada and tenants have more rights than you are probably aware. Once again, do not hesitate to call or email our real estate team with your questions or concerns.
The Student
We are all aware of the many international students who flock to B.C. for their ESL and/or education and require a safe homestay for the duration of their stay.
For home owners who could use a little mortgage helper, renting a basement suite to a student can be the solution. But if you haven't done your homework, there can be tough lessons to learn. Here are some of our
BC HOME HUNTER TIPS.
Renovations Required
To rent your basement suite will require more than a fresh coat of paint. Your basement might need additional insulation, carpeting, wiring, furniture and a bathroom. Check with a home renovator before you begin to find out what your costs will be. Our in house contracting company can provide you with a very competitive estimate.
Where to Advertise
University or college housing notice boards at student union buildings print out flyers or register with the housing office.
Graduate student societies.
Newspaper classified ads in both dailies and community newspapers, Craigslist, Rent BC, Places 4 Students, ESLRENT.com, My Ideal Home rentals, rentseeker.com, www.kijiji.ca
What Students Are Looking For
Location:Students want to live close to their campus. In addition, they want to be within walking distance to a bus route or SkyTrain station.
Renovations Required
To rent your basement suite will require more than a fresh coat of paint. Your basement might need additional insulation, carpeting, wiring, furniture and a bathroom. Check with a home renovator before you begin to find out what your costs will be. Our in house contracting company can provide you with a very competitive estimate.
Where to Advertise
University or college housing notice boards at student union buildings print out flyers or register with the housing office.
Graduate student societies.
Newspaper classified ads in both dailies and community newspapers, Craigslist, Rent BC, Places 4 Students, ESLRENT.com, My Ideal Home rentals, rentseeker.com, www.kijiji.ca
What Students Are Looking For
Location:Students want to live close to their campus. In addition, they want to be within walking distance to a bus route or SkyTrain station.
Amenities:They want a suite that is bright, in good shape and offers amenities such as access to wireless internet, cable television, laundry facilities, parking and furnishings.
Hot Local Areas for Student Rentals
Any area where there is a nearby university or college.
UBC Point Grey Campus students want to be on the Broadway corridor or anywhere in Kits or Point Grey.
SFU students favour locations on or near bus routes #143 Como Lake, #144 along East Burnaby Mountain and #145 along East Hastings route.
SFU Surrey students are hoping to stick near Surrey City Centre and close to the SkyTrain.
Kwantlen Richmond students are looking near the Lansdowne SkyTrain station route and along Minoru Boulevard between Westminster Highway and Granville to Blundell Road.
North Vancouver home owners can target Capilano University students.
Hot Local Areas for Student Rentals
Any area where there is a nearby university or college.
UBC Point Grey Campus students want to be on the Broadway corridor or anywhere in Kits or Point Grey.
SFU students favour locations on or near bus routes #143 Como Lake, #144 along East Burnaby Mountain and #145 along East Hastings route.
SFU Surrey students are hoping to stick near Surrey City Centre and close to the SkyTrain.
Kwantlen Richmond students are looking near the Lansdowne SkyTrain station route and along Minoru Boulevard between Westminster Highway and Granville to Blundell Road.
North Vancouver home owners can target Capilano University students.
Do Your Research
It's a good idea to become an expert on landlord-tenant legislation rules that apply where you live and make sure your suite is legal. In addition, make sure to research your local municipal bylaws, which include things like guidelines and standards for fire and building safety. Municipal bylaws also cover issues such as zoning and permits. The Canada Housing Mortgage and Housing Corp. has a useful website with many good links and you can always call our real estate team at THE BC HOME HUNTER GROUP and we would be more than happy to email or drop off a complete package for landlords in the lower mainland and B.C.
Risks and Solutions
Breach of insurance:If anything were to happen, for instance if a fire starts in the rental suite, the insurance company could say they were not informed of the tenant and that the policy is voided. So when you rent out a room or basement in your home, you must inform your home insurance company something that the vast majority of people fail to do.
It's a good idea to become an expert on landlord-tenant legislation rules that apply where you live and make sure your suite is legal. In addition, make sure to research your local municipal bylaws, which include things like guidelines and standards for fire and building safety. Municipal bylaws also cover issues such as zoning and permits. The Canada Housing Mortgage and Housing Corp. has a useful website with many good links and you can always call our real estate team at THE BC HOME HUNTER GROUP and we would be more than happy to email or drop off a complete package for landlords in the lower mainland and B.C.
Risks and Solutions
Breach of insurance:If anything were to happen, for instance if a fire starts in the rental suite, the insurance company could say they were not informed of the tenant and that the policy is voided. So when you rent out a room or basement in your home, you must inform your home insurance company something that the vast majority of people fail to do.
Income tax increase:Once you have a rental suite in your home, you have to claim that rental income on your tax return. In addition, once you start using the property for revenue, a portion of the capital gain when selling the property could be deemed taxable.
A troublesome tenant:There's always the fear that a student will attract parties, drinking, drugs or simply play music loud and late. Make sure you get references from your tenant and draw up a list of rules and regulations, following landlord-renter legislation, as with any rental agreement. For extra peace of mind, you can aquire a student through a recognized program like Canada Home Stay International, so there is an organization that you can go to if there are any problems. We hope these basic pointers have been of some assistance.
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