These days, it is getting more common for people to rent a part of their home to help pay their mortgage. In fact, many people build suites into their homes or buy homes that have independent suites in them, so they have a renter to help pay the mortgage.
The most common problem with suites is that of the legality of having a suite built into a single-family dwelling. Make sure that you're allowed to have a legal suite in your home, by checking out the local bylaws before you build a suite into your current home. Just because a home has a suite built into it doesn't mean that it's been legally done; check the house's zoning to confirm whether a suite is legal or not.
A home with a suite in it will need proper additional insurance; make sure that you are properly covered when you talk to your insurance provider. You will probably have to inform your mortgage lender that you have a rental suite in your home, too.
Renter's Insurance
In the event of a catastrophe, many renters wrongly assume that you, as the landlord, are responsible for their belongings. Conversely, only the property itself is covered, not their personal items, furniture, electronics, or clothes.
Renter's insurance protects tenants' belongings from these type of events, including theft. This type of insurance can cover them for any liability if someone gets injured in their suite, as well as protect them from all these things.
In fact, you should insist that your renters purchase renters insurance. The landlord's rental agreement sometimes has this as a condition. There are two reasons why you should require your tenants to have this insurance. In case your tenants need to step out while repairs are being made to their home, the insurance company will provide them with money for hotel accommodations. Finally, the insurance will cover the medical bills as well if a tenant is seriously injured while inside his home/condo/apartment.
Once you have your suite in place and you are adequately insured, it's time to look for a renter. You can advertise for renters if you don't know anyone who is looking for a suite to rent. You will need to make sure that you do background checks in this case though; if they're living in your basement, you want to make sure that a renter is going to fit in with your lifestyle.
Finding out the legalities of being a landlord is another important step. Even if your tenant is a family member, you should know your legal rights and responsibilities; when problems happen between a tenant and a landlord, it is often because of a misunderstanding about the legal rules by which both parties have to abide. Otherwise, renting out a a room or a suite in your home can be a very good means of providing some reasonably priced accommodation and helping you make your mortgage payments.
The most common problem with suites is that of the legality of having a suite built into a single-family dwelling. Make sure that you're allowed to have a legal suite in your home, by checking out the local bylaws before you build a suite into your current home. Just because a home has a suite built into it doesn't mean that it's been legally done; check the house's zoning to confirm whether a suite is legal or not.
A home with a suite in it will need proper additional insurance; make sure that you are properly covered when you talk to your insurance provider. You will probably have to inform your mortgage lender that you have a rental suite in your home, too.
Renter's Insurance
In the event of a catastrophe, many renters wrongly assume that you, as the landlord, are responsible for their belongings. Conversely, only the property itself is covered, not their personal items, furniture, electronics, or clothes.
Renter's insurance protects tenants' belongings from these type of events, including theft. This type of insurance can cover them for any liability if someone gets injured in their suite, as well as protect them from all these things.
In fact, you should insist that your renters purchase renters insurance. The landlord's rental agreement sometimes has this as a condition. There are two reasons why you should require your tenants to have this insurance. In case your tenants need to step out while repairs are being made to their home, the insurance company will provide them with money for hotel accommodations. Finally, the insurance will cover the medical bills as well if a tenant is seriously injured while inside his home/condo/apartment.
Once you have your suite in place and you are adequately insured, it's time to look for a renter. You can advertise for renters if you don't know anyone who is looking for a suite to rent. You will need to make sure that you do background checks in this case though; if they're living in your basement, you want to make sure that a renter is going to fit in with your lifestyle.
Finding out the legalities of being a landlord is another important step. Even if your tenant is a family member, you should know your legal rights and responsibilities; when problems happen between a tenant and a landlord, it is often because of a misunderstanding about the legal rules by which both parties have to abide. Otherwise, renting out a a room or a suite in your home can be a very good means of providing some reasonably priced accommodation and helping you make your mortgage payments.
About the Author:
Visit New Westminster real estate to learn more about making a good home purchase. If you wish to get more information, you can check the real estate specialist at www.toddconner.com.
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