Discussions

Hello all,  
 
Just have a few questioning about renting a room in your home. I own the home & live in it as well. I tried finding answers to my questions online, but came up short.  
 
-Do you have to supply rent receipts to renters? I've been told that no you do not, however I want to double check.  
-I've read that when Renting a room in your home that you also live in that the Manitoba tendency act does not apply.  
 
Any input would be greatly appreciated.

Contact Residential Tenancies Board here in Brandon at 204-726-6230 and they should be able to answer any questions you may have.

Why would you not want to issue a receipt? It makes it easier when filing your income tax. (You will be claiming this income, won't you?) Then you can deduct expenses for the rental. (Including the receipt book.)

Unless it's changed, I don't think there's a renter out there who isn't going to want to grab the tax benefit for renters and they're going to need receipts for that for sure. I don't see what leg you'd have to stand on to refuse.

The tax benefit to renters really isn't all that great. When I was renting, we agreed to a lower rent without receipts. I paid less each month vs getting more back in March, and the landlord had no proof of my rent so didn't claim it. Win win (unless they eventually got audited)

For tax purposes, if you deemed them as a "roommate"... no receipts are required and you as a homeowner don't need to claim the rent as income. However, if you do issue receipts... you do expose yourself to the potential of being doubled crossed by the tenant to Revenue Canada, if a situation does occur. Like the tenant claims rent as a deduction, or if you have a big fallout with them and they report you to Rev. Can. on failing to claim extra income. The receipts would be damning evidence.  
 
Many years ago... When I got out of school and bought my first house in Brandon, I had "roommates" instead of tenants or boarders. I made it clear right from the beginning what they were and there was to be no receipts. But, by doing this, trust and faith is in order because you are not protected by the Tenancies Branch. That means if the tenant fails to pay, leave without notice or steal/damage/destroy property... You are left with the only option to file a police report (which nothing usually happens in regards to the complaint) and proceed with a shaky civil lawsuit (which takes away your time, money, and hope for justice) to claim some restitution. The results from my adventure with roommates was mixed. The money was fine, but their living habits and disregard to my property and budget drove me nuts. I ended up throwing them out, separating off the basement and putting in a legal "Granny suite" and charging more to cover the additional expenses. ....Worked way better. I got my sanity back and in a short time, the additional investment quickly paid off. I was lucky with the type of house I had and got help from friends and family, so the conversion was quick and easy.  
 
My advise... Unless you are bringing in trusted friends or family into your home, acquaintances and strangers will bring nothing but grief to you. It's not worth the risk.  
 
Just my opinion, I could be wrong.  
 
Edited by snowman5, 2015-12-23 11:28:07

Mela said "Unless it's changed, I don't think there's a renter out there who isn't going to want to grab the tax benefit for renters and they're going to need receipts for that for sure. I don't see what leg you'd have to stand on to refuse. "

Except I think only one person per residence can claim the benefit. So if the homeowner claims it, I don't think a tenant can claim it if it's the same unit.

Even if you do claim the rental income it ends up being little or no income once you deduct all the allowable deductions. Find out what the allowable deductions and save all the receipts. You can claim all kinds of stuff.

You might also want to check with your insurance broker to ensure you are covered or need to change your policy.