I bought my first house in 2022 and now I might need to temporarily relocate for work. I’m thinking about renting out my place while I’m gone. I’ve heard I need to refinance as an investment property with 20% equity and maybe higher interest. Is there any way around this in Canada, like a ‘consent to let’ option? I’ve lived here for 3 years and definitely plan to move back. Any advice would be great!
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As a landlord, I’d strongly advise against renting out your home right now, especially for a temporary period. The current state of the Landlord and Tenant Board (LTB) makes it risky. Here’s why:
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No short-term renting: In Ontario, once a tenant moves in, the lease doesn’t expire regardless of what’s in the agreement.
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Eviction difficulties: If you need to move back in, evicting tenants can take months or even years, especially with the current LTB backlog.
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Financial considerations: While you might not need to refinance immediately, you’d need to disclose the change in property use at mortgage renewal time.
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Property management: You’d need someone local to manage the property while you’re away.
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Legal complexities: Being a landlord comes with many rules and regulations you must follow.
If you absolutely must rent it out, consider only renting to someone you trust completely, like a close friend or family member. Otherwise, you might find yourself unable to move back into your own home when you return.
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But what if I really need the rental income while I’m away? Surely there must be a way to make this work?
I understand the need for rental income, but the risks often outweigh the benefits in these situations. Here are some alternatives to consider:
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Rent out individual rooms instead of the whole house. Keep one room for yourself and rent out as a shared accommodation. This way, you’re not subject to the same tenancy laws.
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Look into short-term rentals like Airbnb if it’s allowed in your area. This gives you more flexibility.
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Consider a house-sitter instead of a tenant. They can keep an eye on your property without establishing tenancy rights.
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If possible, rent out your place to a trusted friend or family member who understands your situation and agrees to move out when you return.
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Explore options to reduce your expenses while you’re away instead of seeking rental income.
Remember, the goal is to ensure you can return to your home when you need to without legal complications.
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As a LL myself, I can tell u that renting out ur place is a nightmare. Just dont do it. Ur better off leaving it empty or getting a house sitter.
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Thanks for all the advice, everyone. It seems like renting out might be more trouble than it’s worth. I’ll look into house-sitting options or maybe just bite the bullet and leave it empty. Better than risking not being able to move back in!
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One more thing to consider: if you do decide to rent out your place, make sure you inform your insurance company. Your regular homeowner’s insurance likely won’t cover rental situations, and you’ll need to switch to a landlord policy. It’s usually more expensive, but it’s crucial for protecting your property when tenants are involved.
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