💬 Thinking of Renting Out a Room?

With housing costs and interest rates on the rise, more homeowners in Markham are finding creative ways to make their homes work for them.
One of the simplest? Renting out a spare room.

Whether it’s a student from nearby Seneca College Markham Campus, a young professional commuting to Toronto, or a newcomer to Canada, room rentals can generate steady income and make homeownership more affordable.

But before you welcome a tenant into your home, it’s important to understand that renting, even just one room, comes with legal, financial, and lifestyle considerations.

Here’s a complete guide to help you make the right decision.

🧾 1. Check Local Zoning and Bylaws

Before advertising your room, confirm that your home is zoned for rental use.
In Markham, properties fall under specific zoning categories that may or may not permit secondary suites or shared accommodations.

Some key things to look into:

• Occupancy limits – how many unrelated tenants can live in a single home

• Parking requirements – most rental setups must provide an on-site space

• Fire and building codes – smoke detectors, fire separation walls, and proper exits may be mandatory

• Business licensing – some landlords must register the unit or obtain a rental license

👉 Tip: Visit markham.ca or call the City of Markham Zoning Department for up-to-date requirements before listing your room.

🏠 2. Understand Landlord Responsibilities

Once someone starts paying rent, you become a landlord under Ontario law,  even if they live in your house.

That means the Residential Tenancies Act (RTA) applies, and you’ll have certain obligations, such as:

• Providing written notice before entering the tenant’s space

• Handling repairs and maintenance

• Following legal procedures for rent increases or evictions

• Respecting the tenant’s right to privacy and quiet enjoyment

The Landlord and Tenant Board (LTB) offers free resources, FAQs, and forms to help you understand your rights and responsibilities.

👉 Important: If your tenant shares the kitchen or bathroom with you, the arrangement may fall under a “license to occupy” rather than a tenancy agreement,  which changes how the law applies. It’s wise to confirm this with a legal or real estate professional before you begin.

🧹 3. Prepare the Space Professionally

Even if it’s just one room, think of it as a mini rental unit. A clean, safe, and comfortable environment will attract better tenants and reduce turnover.

Consider:

• Repainting and deep cleaning

• Installing a secure lock on the tenant’s bedroom door

• Ensuring smoke and CO₂ detectors are up to date

• Providing basic furnishings (desk, bed, closet, curtains)

• Labeling cabinet or fridge space if the kitchen is shared

Creating a welcoming, hotel-like setup can help you charge higher rent and build a positive landlord–tenant relationship.

💰 4. Set a Fair and Competitive Rent

Research the local market before setting a price.
In Markham, a private room in a detached home or basement suite can range from $900 to $1,500 per month, depending on:

• Location and proximity to transit or schools

• Size and amenities (private bathroom, parking, furnished, etc.)

• Whether utilities, internet, and laundry are included

Be transparent about what’s covered, and remember, Ontario has rent increase guidelines that limit how much you can raise rent each year.

👉 Use platforms like Rentals.ca or Facebook Marketplace to compare listings nearby.

🧑‍⚖️ 5. Create a Written Agreement

Even if you’re renting to a friend or family member, a written agreement is a must.
It should clearly outline:

• Rent amount and payment due date

• What’s included (utilities, parking, internet, etc.)

• Shared space rules (noise, cleaning, guests, etc.)

• Move-in and notice requirements

• Conditions for ending the arrangement

A simple document protects both parties and helps avoid misunderstandings later.

👉 Ontario’s Standard Lease Agreement is a great starting point and can be downloaded from the provincial website.

🛡️ 6. Review Insurance and Tax Implications

Before you rent, contact your home insurance provider.
Some policies exclude rental activity or require you to add a landlord endorsement. Without the right coverage, you could lose protection if damage occurs.

Also, remember:

• Rental income must be reported to the CRA

• You can deduct certain expenses (utilities, repairs, a portion of property tax, etc.)

• Keep clear records of rent received and costs related to the rental space

It’s worth consulting an accountant or tax advisor to ensure you stay compliant while maximizing deductions.

🕵️ 7. Screen Tenants Carefully

It’s tempting to accept the first applicant, especially if you’re eager to fill the room, but screening is essential when you’ll be living under the same roof.

Ask for:

• Employment or income verification

• References from past landlords

• Credit checks or background screening (with consent)

When meeting potential tenants, trust your instincts. Compatibility matters, this person will share your kitchen, bathroom, and common spaces, so mutual respect is key.

💬 8. Plan for Lifestyle Adjustments

Renting out part of your home means adjusting your routines.
You’ll have to share space, coordinate chores, and establish boundaries.

Ask yourself:

• Am I comfortable sharing my kitchen or laundry area?

• How will I handle guests or overnight visitors?

• Do I have clear house rules to avoid tension?

Good communication upfront prevents awkward situations later.

💡 9. Consider Long-Term Goals

If you enjoy hosting tenants and managing rentals, this could be your first step toward real estate investing.
Many homeowners in Markham eventually convert basement spaces into legal secondary suites or purchase income-generating properties after positive experiences renting out a room.

If that’s your goal, your REALTOR® can help identify zoned properties with rental potential and connect you with professionals for design, permits, and ROI analysis.

🏁 Final Thoughts

Renting out a room can be a smart financial move, helping you pay off your mortgage faster, reduce monthly expenses, or simply use your home more efficiently.

But it’s important to approach it like a business, with proper planning, documentation, and due diligence.
Understanding local laws, insurance requirements, and tenant screening will protect your investment and ensure a smooth experience for everyone involved.

👋 Let’s Chat

Renting out a room in your home can be a smart and rewarding decision, especially in a high-demand market like Markham. Whether you’re looking to ease mortgage payments, test the waters of real estate investing, or simply make better use of your space, the key is to do it strategically and legally.

Whether you’re just exploring your options or ready to rent out your space, we’re here to help you turn your home into a source of income, the right way.

💬 Let’s start the conversation today:
📧 [email protected]
📞 (647) 370-8656