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Renting property out in Toronto can be a lucrative undertaking. With housing prices skyrocketing and many buyers being priced out of the market, growing numbers of people don’t ever foresee buying a place of their own. However, while rental income can definitely boost your bottom line – it can also set it back when it comes to tax time. In order to play your cards right, it is best to be unformed when it comes to the tax implications of becoming a landlord.
 
Claiming the income
The first thing to remember is that you must claim any and all rental income that you get. Whether you are simply renting out the spare bedroom in your basement or luxury apartments, any rental income will be counted towards your total net income for the year. However, the amount that you declare will depend entirely on how much of the property you own. If you own 100% of the building, then you will have to declare all of it. If you co-own the property, then you and the other owner can potentially split the income with your co-owner.
 
Claiming expenses
Naturally if you own property, then you are allowed to claim expenses against the maintenance and upkeep of the property. There are two kinds of expenses that are allowed. The first is current expenses, which pertains to regular maintenance. The second is capital expenses, which pertains to any lasting improvement to the property – for instance fixing the roof.
If your expenses are greater than the rental income of your property, then you will end up with a loss. Any losses can be deducted from your rental and regular income (if you have a day job).
 
Keeping track
Having a good accountant or keeping meticulous track of all your income and expenses with your rental units will go a long way towards ensuring that you don’t run into trouble when it comes to tax time.
 
Incorporating
If you own more than one rental property, then it might be a good idea to incorporate yourself as a business in order to lower your tax burden as corporations are taxed at a lower rate than individuals. Keep in mind that if you choose to go this route you will have to hire an accountant to help you with the intricacies involved with such a business.
Regardless of what you choose, the one thing you must to is to find out about the property tax code so that you don’t have any surprises. The CRA website is a treasure trove of information on that account and you can find it at //www.cra-arc.gc.ca/rental/.

Renting out your property can be a little intimidating for a first time landlord. Attracting the right renters is crucial to a smooth and successful rental experience. The best way to get the kind of renters you want is to create the right kind of ad. Since most people won’t take the time to call unless they are really interested in your property, it is imperative to put all of the relevant details that they would need into your ad. However, remember that catching someone’s eye is crucial and for that you must keep it short and snappy.
 
In today’s world of soundbites and 30-second news clips, no one want to read a dense paragraph describing your rental unit. Instead keep your listing as short and succinct as possible using bullet points and different fonts to draw attention.
 
Be sure to include such details as:
– Security deposit
– Number of bedrooms
– Number of bathrooms
– Whether it is upper or lower floor
– Location
– What’s nearby such as shopping, transportation, etc…
– Cost
– Whether you accept pets or not
 
Once you have your list put together, you are ready to write your ad. Include good pictures where possible so that they have a good idea of what they will be getting.
 
Next, post to as many websites as possible including Craigslist and Kijiji. If you are worried about vetting the potential renters by yourself, you can also enlist the aid of a knowledge real estate agent who can help you find tenants. Usually such a request will cost you the first month’s rent, but it is worth it for those who would rather forego the trouble of finding tenants themselves.
 
As long as you find the right tenants, you will have a smooth time with your rental unit.

Listing your home on Airbnb or any other sharing website is a great way of making some extra money on the side. However, before jumping into such a situation, make sure that you are prepared for the work that it will entail and the risk that you will assume.
 
Firstly, check with the laws in your province to make sure that you are allowed to rent your home out as a short term holiday rental – in some places Airbnb has been banned.
 
Secondly, be sure that you organize yourself properly. Take good pictures of  your place. Good pictures will sell your rental quicker than mediocre ones. Make sure that your home is clean and looks attractive.
 
Next, sell your neighbourhood and the attractions of your city and your location. A good write up in a friendly, approachable manner will go a long way toward bringing renters calling.
 
It is a good idea to also invest in extra amenities including towels, pillows, blankets, linens, utensils, etc… it will save you the hassle of having to rush to clean everything before the next renters come in. Having extras on hand will mean that you can swap out the used items for clean stuff while you clean up.
 
Put together a little book containing a list of your house rules, how to use the local transportation and anything else that someone new to our city would need to know.
 
Another good idea is to include a small fee for laundry and cleaning as this will cover the extra costs you will incur for such items.
 
Lastly, remember that it is good to be friendly to the renters, but you don’t have to be their best friend. Let them know that if they need you, they can reach you, but otherwise let them explore and have fun on their own.

Yes, it is true – anyone can be a landlord. As long as you have the cash to spare, the tenacity to deal with constant challenges and an optimistic attitude, you have what it takes to succeed. However, there are also some more practical tricks you need up your sleeve in order to make being a landlord work for you. In this short blog, we’ll cover some of the basics of renting that will help you succeed.
 
1. Screen all applicants. Do not skip this step – it is necessary to know who is going to be living on your property. You want to know if they have good credit, a steady job and an upstanding character.
2. List all house rules. Present each prospective tenant with a list of house rules that you then attach to the lease upon signing – in that way, no one can claim ignorance after the fact.
3. Be sure to collect on the first of each month. Don’t let a tenant get away with not paying on time, lest it become a habit.
4. Include late fees on lease. Determine an amount for late payments and stick to it!
5. Be organized. Regardless of whether you have one or one hundred rental units, keep a detailed file of all repairs done to the place, the names of all contractors and an account of all payments received.
6. Know when renewals are coming up and make sure that you are on top of them!
 
Bookmark the Landlord and Tenant Board’s website: www.sjto.gov.on.ca/ltb and have their phone number on speed dial!

Can you be a landlord? The simple answer is “yes,” the true answer is a lot more complicated. However, the path to profit can certainly be achieved if you play your cards right and make a sound rental investment.
 
Being a landlord is one of the surest ways to build equity for yourself and your future. After all, real estate will always appreciate over the long term – even if there are downturns within your time-frame, historically, over a ten year time period property values tend to double. However, being a landlord is not for the faint of heart or for those who want a passive investment.
 
The truth is that being a landlord is an active investment. Whether you have only one rental unit or ten units to oversee, you have to be prepared that when the phone rings, at the other end will be a tenant complaining of a problem that needs fixing. Some people realize quickly that being a landlord is more work than they anticipated and so cut-short their realty dreams. However, proper planning and a realistic view of what is entailed will help you succeed. If you know that you are not handy with a hammer, enlist the aid of someone who is. Get yourself a shortlist of affordable and reliable contractors whom you can call to help you on short notice. Or, you can always hire a property manager to oversee your property and to report any real issues to you. Hiring a property manager only really makes sense if you have enough rental units and profit to make the expense worth your while.
 
The next thing to remember is that the numbers have to work in your favor. If the rent you charge doesn’t cover your carrying costs, your maintenance costs and provide you with a small profit at the end, then the investment is not sound. Whatever rental you buy make sure that the rent will cover your mortgage, insurance, taxes, maintenance and leave you with a little bit to save at the end of the month. If you don’t have that savings margin then any unforeseen circumstances will result in a loss for you that month.
 
So, to recap this quick overview, yes, you can be a landlord! Just remember to following these very simple guildelines:
 
– Crunch the numbers! Make sure the rent you receive every month more than offsets the costs of running your rental property.
– Prepare mentally for an active investment.
– Make a shortlist of go-to contractors who can help with fixes/renovations as needed.
– Know the property laws in your province or state.
– Know your tax laws!

It’s summer in the city – and the heat waves have everyone moving at a slower pace and dreaming of cool, breezy drinks after work. If you aren’t so lucky as to have air conditioning in your Toronto home, there are still other ways of keeping cool during the peak of summer heat.
 
Draw the shades
Before leaving for work in the morning, be sure that all of the curtains, shades and blinds in your home are drawn tight against the sun. Although this may seem counterintuitive when we all long to see sunlight streaming through our windows, this beautiful light will also heat up your home very quickly. The best way to prevent this is to keep the sunshine out.
 
Keep cool air in and hot air out
The next smart move to keeping your home cool is help hot air escape by creating a cross breeze. To create such a breeze you first need to create a vacuum that will help push the hot air out. To do this you have to open the windows on the cool side of your home along with the windows directly opposite those on the other side of your home. If you don’t have windows perfectly across from each other, no worries – as long as you have a path for the air to flow through. Just remember that air flow doesn’t work with angles, so there needs to be a path for the breeze to be created. The most efficient current is created by opening windows on a lower level that let in the cool air and cross windows on an upper level to let the air out.
 
Fans
Fans are always very handy at helping to create a breeze or to increase air flow in a hot, sticky room. Whether hung from a ceiling, standing on a pedestal or one of those new-fangled bladeless options, fans are terrific at moving air on days when nothing seems to move. However, be sure to turn them off when heading to work, because while they do move air around, they also tend to heat the air up as well. So, keeping them off during the day is the best way to keep a room cool for your return.
 
Clothing
Most of us assume that in the heat we have to shed our protective layers – this is actually the opposite of what we should be doing. Instead of protection from the cold, in the summer we need long sleeves and pants in order to protective our skin from the sun’s heat. The clothing should be made of natural fibres, light and light-coloured to maximize their cooling effect – it is the reason why people is hot countries tend to cover up.
 
Ice
Placing a bowl of ice in front of a fan will help to cool the air naturally. As the ice melts, the cool vapor will be picked up by the fan and blown into the air. Holding ice in a cup is also a very effective way of cooling down. Holding the icy cup near your temples will lower your body temperature while breathing out into the cup will help melt the ice, which in turn will release cool mist into the air.