Renting Out a Basement
By MicK101
@MicK101 (22)
Canada
October 26, 2010 3:35pm CST
I am a first time homeowner who've decided to rent out my basement due to financial difficulties my family is facing since my wife had lost her job.
A few weeks after we let the tenant in into ourlives, our hellish life began. She has called the fire department and the city to complain about the basement being illegal - tenant was aware it was illegal when she entered tenancy with us.
Even if the basement is illegal, the unit does have a separate entrance, kitchen, bathroom, windows (2) and a separate door for exit, separate unit, working fire alarms (2), carbon monoxide alarm and fire extinguisher (not required).
The problem with the basement is the height restriction (only 5'9") and the necessary permit. The fire department inspected the unit and advised that nothing major work is needed to be done beside putting up drywalls in the furnace room.
That being said, renting out an illegal basement is an offense punishable with a 12 months conviction and a fine up to $50,000.With that I am very concern for what the future hold for me and my family.
Don't pass judgment on me, I am not the first homeowner who've rented out a basement...I did learn my lesson but I ask if anyone out there who have been in a similar situation to offer some insight or advice in this regards. I want to know how I should conduct myself when the City knocks on my door? I did hear that I can refuse them entry, should I? Any sort of information is welcome. I did my research but I still want to learn more from those who've been in such situation.
Thanks!
2 people like this
6 responses
@maezee (41988)
• United States
27 Oct 10
Can the city just come by and knock on your door to check things out? That seems a little fishy, if not illegal to me..But I guess you need to weigh the risks out. My mom actually does a similar thing, she's renting out HER basement without her landlords' knowledge or permission to her sister - to help her sister/my aunt out who can't afford rent on her own. It's been about 6 months, and while it's a pain and nobody has any real privacy, it WORKS. Laws are different all over though.
1 person likes this
@kris182_2000 (5453)
• Canada
27 Oct 10
I didn't realize you were in Ontario too.
But the city building inspectors will come by at some point and investigate.
You remember when the garbage strike was on in Toronto 2 summers ago? That was when I was living in that apartment. The strike affected most of the city, including the building inspectors, which was why I didn't follow up with my complaint after I'd moved.
But as I said in my previous comment, you will be advised to dig your basement, or if you can, raise the ceiling in the basement. Probably wont be an option since your furnace ductwork is probably in the way. So digging down at least 6" to a foot will be required.
The landlord/tenant board can be brought in on this case if needed, and it could work against you in this situation. If they side for the tenant, then you may have to pay compensation to her, should she take it to the tribunal.
This will not be an easy fight for you, but if you promise the city to get the work done, you should be ok. I think they will give you about 3 months to get the work done before they come back to inspect the apartment. If it's not up to code, then they will fine you.
Good luck.
1 person likes this
@MicK101 (22)
• Canada
27 Oct 10
The City don't keep track or investigate houses on their own. They must first receive a complain (normally from a neighbour - in my case, the tenant herself) to start their investigation.
Right now, I am waiting for the City to knock on my door since my tenant told me last week that she already called the City and that they will be dropping by. This law governs Ontario, Canada. I don't know how it works somewhere else but I know this much - Canada, Australia, US and England uses Common Law system so that make these countries somewhat similar.
1 person likes this
@joey_matthews (8354)
•
26 Oct 10
I have not been in the same situation as i do not have a basement, but i'm not going to pass judgement on you. Is it possible for you to do the required work to the basement so its upto legal standard to rent it out? Does the tenant you let rent the basement have any documents signed by you stating anything about renting out the basement? because if they don't, they have no proof and then can't really do anything about you letting them stay there.
1 person likes this
@MicK101 (22)
• Canada
27 Oct 10
I would assume that the fire department to give me time to put up drywalls as recommended. However, I don't know what the City will have to say about my basement. I hope it's the same as the fire department's recommendation and that the City won't take legal action against me and/or fine me.
Right now, I only see two options I can do while waiting for the City. One, meet with a lawyer, which I already have an appointment tomorrow; and two, put up the drywalls. After that, I guess I'll just have to wait and see what the City is gonna say.
We actually signed a lease agreement, which has its advantage and disadvantage in this situation.
1 person likes this
@shaggin (72144)
• United States
27 Oct 10
Thats really sad that you opened your home to her and gave her a place to live and she goes and turns you in. Why would she choose to live there to begin with if she wasent happy with how short the ceilings are. 5'9" would be very short for a ceiling. I would feel claustraphobic. I hope the city doesnt give you to hard a time. I hope they just dont allow you to rent it out any longer but dont give you a fine. It would be different if they told you not to rent it out and then you did anyway then I could see you getting a fine. But the first time around hopefully they will just give you a warning.
@snowy22315 (180870)
• United States
26 Oct 10
Wow, that really sucks. I think you should consult a property attorney with experience in landlord, tenant relations. I really feel for you. I don't think you need to be terribly worried about it. I would simply call an attorney post haste.and explain the situation. She took the room and now wants to turn you in for some reason. I have a tenant also, but he is very nice, and we have had no real problems.
Good Luck with this. Like you really needed this to worry about!
1 person likes this
@TeamCholent (2832)
• United States
26 Oct 10
Im sorry to hear this and I find it pathetic how this user was fully aware of what you were offering and then accepted only to turn against you. I would firstly not panic about anything as I am sure this happens often. Get hold of a property lawyer who can advise you about this and the course of action to be taken.
I am sure something can be sorted out as nobody wants legal action to take place(you or the city) as it drags out and is a waste of resources and funds. I am pretty certain that if you approach them and take the right action(renovate whatever needs to be for it to be legal) they will allow you a grace period to do this. I hope you are not renting out the basement at the moment while you are sorting things out.
On a side note, hope you stay and enjoy yourself here at MyLot as its a great site and the pay isn't a bad thing either 
best of luck with everything. 
[em]niceday[/em
best of luck with everything. [em]niceday[/em1 person likes this
@MicK101 (22)
• Canada
27 Oct 10
You really have a good point there TeamCholent....don't think that the City would take legal action against me without giving me a chance to repair or renovate what is needed to be done first.
Unfortunately, the same tenant is still living in my basement and she is hesitant to move out. But right now, I couldn't really focus on that yet....gotta deal with the City and see what they have to say about the situation and hopefully I don't get fine or convicted.
Thanks a lot!
1 person likes this
