Rent your house by the room without leaving your shirt there

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SOMETIMES … YOUR FINANCES. Many people are looking for extra income, especially considering the marked increase in the cost of living in recent months. Some take advantage of this to make the rooms, equipment or space in their residence profitable, when it is not the entire property, thanks to sharing economic applications. Before diving first, however, it’s best to learn about the risks and responsibilities so as not to lose your shirt.

It is possible to rent almost all of your property, in its entirety (Airbnb, Vrbo) and even in pieces: your swimming pool (Swimply) or your parking lot (ParkingForMe, CityParking or Prkair) or even your sofa (Couchsurfing) ).

Some find it difficult to invest a little because they see the potential in it.

“I have clients who rent their pool every hour and they don’t want people coming into the house to go to the bathroom,” explains Jimmy Lacoursière, tax specialist at Desjardins Wealth Management. So they have an outdoor toilet built in with a changing room. If the income is significant enough, it makes sense.

Personal income or incorporation

Accepting a foreign swimmer is more complicated than simply registering an application and receiving money.

The question all of Jimmy Lacoursière’s clients ask is whether it is better to include a company or add this additional income to his personal income.

Two key elements will dictate the need to create a company, Jimmy Lacoursière’s promotion. The first is the number of rental income. He reminds us that a person who receives more than $ 30,000 in taxable commercial activities (sales, rentals, exchanges, etc.) in the last four quarters must register for GST and QST and must also collect the taxes on services provided.

“However, the government obliges some hosting platforms to charge taxes even if the person does not reach $ 30,000, however, Jimmy Lacoursière pointed out. It is interesting, in this case, to register to get some credits.


The second element is the risk inherent in the rental. For example, a swimming pool poses a risk of drowning. It can also damage your property or the property of people who use it.

Of course, regular home insurance won’t cover you against lawsuits or injuries, recalls the head of public affairs at the Insurance Bureau of Canada Anne Morin.

“Home insurance contracts are designed to cover the private life activities of an insured,” he pointed out. Once a home is used to earn income, it is important to let your insurer know. This is the most important advice we can give consumers. ”

The risk for the insurer may increase depending on the type and frequency of activities, Anne Morin added. It is therefore very important to provide him with information that allows him to assess the risk and, if necessary, to modify the contract accordingly. Failure to do so could jeopardize the insured person’s compensation if a claim occurs while using their home to earn a living.

Degree of use

It is possible for the owner to deduct certain costs associated with renting and using his property, very similar to the home office for self-employed workers.

“Costs should be related to rent, Jimmy Lacoursière maintains. Advertising is 100% deductible. As for the surface of the residential area, if the rented room is equal to 10% of the house, all costs are reduced to 10%, in proportion to the number of months of use.We come to the costs associated with a swimming pool or a rented garden.

“The main rule is one of rationality, and you have to keep a record of how you got to use it,” Jimmy Lacoursière explains.

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