Renting part of your Lower Mainland residence

By:  Shane Toews

In today’s rising real estate expenses it’s not uncommon for people in the Fraser Valley area to rent out part of their principal residence as an income source.  A mortgage helper often times is useful when buying a home in Vancouver, Richmond, Burnaby, Surrey, Coquitlam, New West, Maple Ridge and Abbotsford properties.  These “mortgage Helper’s.” is often referred to as “illegal suites.”  This refers to the fact that the suite or room rented to someone who is not a relative  may contrast some municipal zoning bylaws in the community.  The zoning might be “single Family”, renting to a tenant would be arbitrarily converting your home from single to multi family.  Keep in mind that the federal government does not care whether your rental space is in contrast to municipal zoning bylaws or not.  See, Municipal bylaws and Revenue Canada tax regulations relate to two separate levels of government.  All revenue Canada cares about is whether you are reporting the income or not in your tax returns.  In practical terms, the manipulates do not enforce the bylaw regulations with “illegal suites”.  Unless the neighbor complains.  And in most cases you have a right to appeal if your municipality requests that the tenant vacate your premises.  Each situation can vary in the Greater Vancouver and Fraser Valley area’s, contact your lawyer for advice. 

However, if you do not rent out part of your home, you can deduct may types of expenses form your income.  See, the net effect might be that your expenses exceed or equal the income.  Meaning that you have to pay no tax to Revenue Canada.  The normal expenses would be for things like interest on your mortgage and property taxes.  Expenses specify related to the renter part of building may be claimed in full.  See your local accountant in the lower mainland or Fraser Valley area for more details on your rental obligations and tax advantages.