Renting out space can help you pay your mortgage but exercise caution and follow these 8 tips - Investigate thouroughly, knowing if, when and where your tenant(s) are employed and for how long
- Check references
- A credit check is critical – a history of late payments signals future problems with collecting rent. Reluctance to agree to a credit check is another red flag
- If a potential tenant doesn’t come along who fits the bill, your lifestyle and temperament, go without a month rent rather than pick an unsuitable person
- If the rent isn’t paid on the 1st of the month, give some leeway but if it happens a second time, start the eviction process. You can always change your mind later but it is important not to delay or months of rent could be lost
- If you live in the same house as your tenant, maintain a businesslike attitude about things such as rent, shared chores, cleanliness and noise
- Set money aside for repairs. Take 10% of the rent each month to build up a repair / maintenance pot
- Do not spend the damage deposit or the last months rent. Put it in a separate account so you don’t get caught short when a tenant moves out and you have to return it
Alison Griffiths – Toronto Star
Rob LePage, Broker | Jill Stewart, Broker
