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800, 10050 112 st Edmonton, AB T5K 2J1 Phone: 780.451.8764 Fax: 780.451.2341 www.cplea.ca [email protected] If you are a homeowner and are thinking about renting out a spare room in your home, you should become familiar with the laws that relate to this living arrangement. While the idea of saving money by renting out a room in your house may be appealing, there are some risks associated with being a landlord. This booklet will help you understand the laws that relate to this living situation. Seniors’ Housing Series Renting Out a Room in Your Home You should not rely on this booklet for legal advice. It provides general information on Alberta law only. Centre for Public Legal Education Alberta

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800, 10050 112 stEdmonton, AB T5K 2J1Phone: 780.451.8764Fax: 780.451.2341 [email protected]

If you are a homeowner and are thinking about

renting out a spare room in your home, you

should become familiar with the laws that

relate to this living arrangement. While the idea

of saving money by renting out a room in your

house may be appealing, there are some risks

associated with being a landlord. This booklet

will help you understand the laws that relate to

this living situation.

Seniors’ Housing Series

Renting Out a Room in Your Home

You should not rely on this booklet for legal advice. It provides general information on Alberta law only.

Centre for Public Legal Education Alberta

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What laws in Alberta relate to renting out a room in my house?

Depending on your situation, there are various laws that may apply to you and your renter. These laws cover issues such as public health, human rights, contract law, and local municipal bylaws. For more information on these laws see the ‘Relevant Alberta Laws’ section at the end of this booklet.

If I rent out a room in my house, am I protected by the Residential Tenancies Act (RTA)?

No. If you are going to rent out a room in your house to someone and still share some living space (such as a kitchen and/or a bathroom,) you are NOT covered by the Residential Tenancies Act (RTA). This means that the rental agreement made between you and your tenant will be the only thing governing any rights or obligations during the tenancy.

In other words, neither you nor your tenant is protected by what is set out in the RTA. However, the RTA is a very important law to review before you agree to have a tenant. First, it identifies most of the issues, obligations, and remedies that landlords and tenants commonly face. Second, many tenants will be familiar with it and have expectations about the terms to be included in the agreement.

What do I need to know about the RTA?

In Alberta, the RTA is the main law that outlines the rights and responsibilities of landlords and tenants.

Because the RTA is designed specifically for landlords and tenants in Alberta, it can provide helpful guidelines for the terms of your rental agreement.

Some of the issues that the RTA covers include:• security deposits; • types of tenancy agreements;• notice periods to terminate a tenancy;• inspections;• landlord and tenant obligations; and• minimum standards of conduct for landlords and tenants.

What are some advantages and disadvantages of renting out a room in my home?

ADVANTAGES DISADVANTAGESYou can use the rent money to offset expenses such as your mortgage payments and utility bills.

You may need to adapt your lifestyle to accommodate your tenant.

If you currently live by yourself, having someone around may help you feel less alone or isolated.

There is a risk you may not get along with your new tenant, even if you were friends before your living agreement.

A tenant can help with difficult household duties (if you add this to your lease and your tenant agrees).

A tenant may affect your home insurance premiums.

Having someone around may help you feel more safe and secure, and if you leave your home to go on holidays someone will be around to help avoid things like potential break-ins, water leaks, and other problems.

Rental income could impact your eligibility for federal and provincial social assistance.

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Should I have a written rental agreement?

Yes. While a verbal agreement is legal, a written contract will provide a record of the terms the parties agree to. In cases of disagreements, the agreements made in an oral contract are much harder to prove.

Can I write my own rental agreement?

Yes you can, but there are many things to consider before you proceed. A rental agreement (often referred to as a ‘lease’) is one of the most important documents a landlord uses. To help avoid legal problems, it is a good idea to start by getting a copy of a standard rental agreement from your local landlord and tenant advisory board or apartment association.

Standard rental agreements DO NOT cover many of the issues that you will need to consider if you rent a room in your home. • Are there time constraints on when the tenant can use

other parts of the house? • When can your tenant have guests over?• Will your tenant pay for their own groceries?• Will your tenant use your telephone?• Will the tenant use your computer or Internet?• How will cleaning duties for the shared spaces in the

house be handled? • Are there any areas in your home that your tenant cannot

enter?• Does the rent include use of the yard, laundry facilities,

or garage?Once you have considered all of the issues and have worked them into the rental agreement that you plan to use, have it reviewed and approved by a qualified lawyer. While this may cost you more money in the short term, a detailed and legal rental agreement may help save you time and money in the future.

What are some things that should be included in the rental agreement?

In addition to issues covered in the previous question, your rental agreement should include all of the following points: • the names of both you and your tenant and their contact

information; • the address of your home; • the amount of the rent; • the date the tenancy is to start and when it will end;• when the rent is due, how it’s paid, and to whom it’s paid;• the amount of the security deposit;• any additional fees (late fees, pet fees, key fees, etc); • if the tenant is responsible for paying a portion of the

utilities (gas, electric, water, cable, internet, and trash collection);

• who is responsible for any additional maintenance (cutting grass, shoveling snow);

• other conditions that apply to use of the property (such as smoking or non-smoking, or rules for common areas);

• what a security deposit covers (for example: keys only, keys and damage, damage only, damage by pets only);

• details of how the tenancy may be ended including notice periods; and

• what is included in the property that is rented? (for example, does the rent include a parking stall or storage in your house?).

The written rental agreement or lease should contain all of the promises that you and your tenant have made each other, and should not contain anything that contradicts what you have both agreed to and discussed.

Where can I get a standard rental agreement or other forms?

Both the Edmonton Apartment Association and the Calgary Residential Rental Association sell landlord forms. Some of these forms include: • application to rent; • rental agreements (leases); • move in and out inspections; and• notices and statement of accounts In addition, your local Landlord and Tenant Advisory Board may have forms. For more information on Landlord and Tenant Advisory Boards, see the ‘Glossary’ at the end of this

booklet.

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I want to be sure that my tenant can afford the rent. What personal information can I request from a potential tenant?

In Alberta, the Personal Information Protection Act (PIPA) outlines what you can and cannot reasonably ask your potential tenant.

According to the Office of the Information and Privacy Commissioner of Alberta*:

• “A landlord may request only the information necessary to make a decision about whether or not to rent property to the tenancy applicant...Sometimes this includes reasonable proof that a tenant is capable of paying rent, or references from another landlord. A landlord would also need information in order to contact the tenant to give his or her decision about the application.”

• “A landlord can request more detailed information beyond this, but the tenant may refuse if it is not reasonable for the rental transaction. The landlord must also be prepared to provide an explanation as to why the information is required”.

• “PIPA governs how landlords collect, use and disclose personal information of their tenants and prospective tenants. Generally, this means obtaining a tenant’s consent and having a reasonable purpose for the collection, use and disclosure of personal information...Landlords must notify tenants of their purpose for the collection...[The landlord is also] obligated to protect tenant information in his or her custody by adopting safeguards to prevent unauthorized access, loss, destruction, copying or modification”.

For more information on PIPA, see the ‘Relevant Alberta Laws’ at the end of this booklet.

* this information is adapted from the Office of the Information and Privacy Commissioner of Alberta’s Publication: “Privacy & Landlord - Tenant Matters Frequently Asked Questions” www.oipc.ab.ca/Content_Files/Files/Publications/Landlord_Tenant_FAQs_Mar2007.pdf.

What do I do if I run into problems or have a disagreement with my tenant?

Because the RTA does not cover landlords and tenants that share a living space, you are not able to access the same services as a landlord in a traditional renting situation would.

Before you seek outside assistance, you should first discuss the problem with your tenant and try to find a solution. If you cannot agree on a solution, try to make sure you clearly understand each other.

If you have a situation that cannot be dealt with on your own, you may need to go to Provincial Court, Civil Division, to apply for a remedy.

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I’ve heard that there is a service called the Residential Tenancy Dispute Resolution Service (RTDRS). Can I use this service as an alternative to going to court?

No. The RTDRS only deals with rental situations that are covered under the RTA.

How much notice must I give my tenant before proceeding with an eviction?

The notice required depends on the reason for the eviction and on the terms in your rental agreement. If you feel threatened or unsafe, immediately contact your local police department.

Glossary

Landlord and Tenant Advisory Boards

The function of a Landlord and Tenant Advisory Board is to advise landlords and tenants in matters relating to a tenancy; receive complaints and to try to mediate disputes between landlords and tenants; and make information available for educating and advising landlords and tenants about rental practices, their rights, and available remedies.

In Alberta, there are two landlord and tenant advisory boards, one in Edmonton and one in Fort McMurray. The extent of services that a Board offers will depend upon its resources. Information can generally be obtained in person or by phone. Information packages, including forms, are often available for purchase.

Lease See Rental Agreement.

Rental Agreement

A legally binding agreement to rent a premises between a landlord and tenant. Rental agreements can be written or oral. However, a written agreement will make it easier to see what has been agreed to and will also provide a record of the agreement. Also called a lease.

Security Deposit Payment a tenant gives to a landlord at the start of a tenancy on the understanding that it will be returned if the tenant obeys certain conditions. The conditions will depend upon the reason that you ask for a security deposit.

Can I take classes, attend workshops, or take a course to learn more?

Yes. The Calgary Residential Rental Association, Edmonton Apartment Association, and the Edmonton Landlord and Tenant Advisory Board offer courses, workshops and educational opportunities to landlords in Alberta. Before you register for a course, make sure that the course will apply to situations where landlords and tenants share living space.

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Alberta Human Rights Act This Act protects individuals from discrimination and

ensures that people are offered an equal opportunity to

find a place to live and enjoy services available to the public

without discrimination.

This means a landlord and tenant cannot discriminate against

each other on the basis of:

• race;

• physical disability;

• source of income;

• gender (including pregnancy, sexual harassment and

gender identity);

• ancestry;

• mental disability;

• sexual orientation;

• place of origin;

• marital status;

• religious beliefs; or

• family status.

Minimum Housing and Health Standards (Part of the Public Health Act)The goal of the Minimum Housing and Health Standards is to

set minimum conditions which are essential to good health

and which make housing premises safe, sanitary and fit for

human habitation. The Standards cover such topics as mice

and insect infestations, acceptable ventilation and plumbing,

minimum temperature your house can be in the winter, and

so forth.

If you have concerns regarding the quality of your living

conditions, you can contact Alberta Health Services

Environmental Public Health for more information.

www.albertahealthservices.ca/eph.asp

Municipal BylawsPublic laws that apply in a certain jurisdiction that are

passed by the local municipal government (for example,

noise enforcement and parking). To learn about bylaws in

your area, contact your local city hall or county office.

Relevant Alberta Laws

To view any provincial laws, visit the Queen’s Printer at www.qp.alberta.ca/Laws_Online.cfm

Personal Information Protection Act (PIPA)This Act protects individual privacy by requiring private-

sector organizations (this includes you as a landlord) to

obtain consent for the collecting, using, and sharing of your

personal information.

If you want to make a complaint or have questions about the

handling of personal information, contact the Office of the

Information and Privacy Commissioner toll-free in Alberta

at 1-888-878-4044.

Residential Tenancies Act (RTA) The Residential Tenancies Act, (RTA) is the main law that

outlines the rights and responsibilities of the majority of

landlords and tenants that live in Alberta. In Alberta, the

RTA is regulated by Service Alberta, which is one of the

Ministries of the Alberta Government.

Safety Codes Act This law outlines the many different codes that relate to

buildings. Some of these codes include: building, fire,

electrical, gas, and plumbing. The Safety Codes Council

is responsible for administering the laws and regulations

related to many aspects of safety codes. Safety Codes

Officers carry out inspections under the Act. Federal laws

may also have an impact on any work that you intend to do

on your building.

RTA HandbookThis aid to interpreting the Residential Tenancies Act is

published by the Alberta government. It also provides

options for dealing with matters the RTA does not cover.

The RTA Handbook is available on the Service Alberta

website at www.servicealberta.ca/621.cfm

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Alberta Human Rights Commission An independent commission of the Government of Alberta

responsible to the Minister of Justice. The Commission

protects human rights in Alberta by resolving and settling

complaints made under the Alberta Human Rights Act.

Due to confidentiality concerns, the Alberta Human Rights

Commission cannot accept or reply to complaints of

discrimination via e-mail.

Complaints may be made by calling the Confidential

Inquiry Line.

North Regional Office 780-427-7661

South Regional Office 403-297-6571

Toll-free access by dialing 310-0000

Website: www.albertahumanrights.ab.ca

Calgary Residential Rental AssociationProvides forms, workshops and information for landlords in

rental situations under the RTA.

Phone: 403-265-6055

Website: www.calapt.org

Edmonton Apartment AssociationProvides forms, workshops and information for landlords in

rental situations under the RTA.

Phone: 780-413-9773

Website: www.eaa.ab.ca

Edmonton Landlord and Tenant Advisory Board (Edmonton LTAB)Provides landlord and tenant legal information that relates

to living situations only covered by the RTA for City of

Edmonton residents. Edmonton LTAB is a useful resource

for general information, and for obtaining forms such as

rental agreements that you can use as a starting point for

adapting to your situation.

Phone: 780-496-5959

Website: www.edmonton.ca/for_residents/programs/landlord-and-tenant-advisory-board.aspx

Law Society of Alberta Lawyer Referral ServiceOperated by the Law Society of Alberta to assist people

in finding a lawyer who will provide them with the legal

services they require.

Phone Toll Free: 1-800-661-1095

Phone: 403-228-1722 (in Calgary)

Website: www.lawsocietyalberta.com/public/lawyer_referral.aspx

Office of the Information and Privacy Commissioner of AlbertaProvides information about the Personal Information

Protection Act (PIPA).

Phone Toll Free: 1-888-878-4044

Website: www.oipc.ab.ca

Service Alberta’s Consumer Contact Centre Provides landlord and tenant information that relates

to living situations covered by the RTA, and is a useful

resource for more general information and referrals relating

to landlord and tenant matters.

Phone: 780-427-4088

Toll Free: 1-877-427-4088

Website: www.servicealberta.ca/Consumer_Info.cfm

Wood Buffalo Landlord and Tenant Advisory Board (LTAB)Similar to Edmonton LTAB, Wood Buffalo LTAB provides

landlord and tenant legal information that relates to living

situations covered by the RTA for individuals living in Fort

McMurray and the surrounding area. The Wood Buffalo

LTAB is a useful resource for general information and for

obtaining forms such as rental agreements that you can use

as a starting point for adapting to your situation.

Phone: 780-743-7888

Website: www.woodbuffalo.ab.ca/page1342.aspx

Contacts: Information, Advice and Assistance

800, 10050 112 Street

Edmonton, AB T5K 2J1

Phone: 780.451.8764

Fax: 780.451.2341

[email protected]

You should not rely on this booklet for legal advice. It provides

general information on Alberta law only.

This booklet is part of a series on seniors’ housing.

The series includes:

• Life Leases

• Renting a Condominium

• Renting out a Room in Your Home

• Reverse Mortgages

Centre for Public Legal Education Alberta

CPLEA is a non-profit organization whose purpose is to provide Albertans with reliable information about their rights and responsibilities.

December 2013

CPLEA gratefully acknowledges the support of

Alberta Real Estate Foundation

Alberta Law Foundation

Service Alberta

Justice Canada

Centre forPublic Legal EducationAlberta

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Notes