As interest rates continue to rise, Canadian homeowners are finding themselves facing higher mortgage payments and an increased cost of living. To offset these challenges and generate supplemental income, a growing number of homeowners are turning to homesharing – a practice that involves inviting a housemate to live in their home in exchange for rent.
Homesharing not only provides regular monthly passive income but also offers a range of benefits for both homeowners and tenants. We will explore how Canadian homeowners can combat rising interest rates by leveraging their homes through homesharing and how renters can benefit too.
1. Supplemental Income to Offset Rising Costs:
One of the primary advantages of homesharing is the ability to generate regular monthly passive income. Homeowners, particularly those in single-income households, can alleviate the financial burden of rising interest rates by charging rent to a housemate. By doing so, they can effectively reduce the strain on their budget, cover mortgage payments, and even put away some savings. Homeowners can expect to generate a monthly supplemental income anywhere between $800 - $1400 by sharing their home.
2. A Mutual Benefit for Homeowners and Renters:
Homesharing not only helps reduce the financial strain on the homeowner and allows for better financial stability, it also provides a practical housing option for renters. As rents continue to rise, it has become increasingly difficult for renters to find options that will allow for better financial stability for them as well. This arrangement reduces the financial strain for renters and can provide room for savings. Homesharing can significantly reduce rent expenses and in some cases, by 50%.
3. Social Connection and Support:
Apart from financial benefits, homesharing fosters social connection and support for both homeowners and renters. Many homeowners, especially those living alone, find comfort in having a housemate to share their home with. This can alleviate feelings of loneliness and provide a sense of security.
4. Screening and Compatibility:
Before inviting a housemate, it is crucial for homeowners to establish clear expectations and conduct a thorough screening process. Homeowners should consider factors such as lifestyle preferences, screening, and compatibility. Services like HomeShare Alliance, or local community groups can help homeowners find suitable and reliable housemates. Conducting background checks and requesting references are essential steps to ensure a safe and comfortable living environment.
5. Legal Considerations:
Canadian homeowners must also be aware of the legal aspects of homesharing. Familiarize yourself with local regulations, tenancy laws, and zoning bylaws that may impact your ability to rent out a portion of your home. Consult with the HomeShare Alliance team to help draft a Homeshare Agreement or enlist a legal expert who can provide valuable guidance in navigating these legal considerations.
As rising interest rates continue to impact Canadian homeowners, leveraging homesharing offers a viable solution to combat the financial strain. By inviting a housemate to share their home, homeowners can generate regular monthly passive income and offset the rising cost of living. Alongside financial benefits, homesharing promotes social connection, offers shared expenses, and provides mutual support. However, homeowners must carefully screen potential housemates and be aware of legal considerations. With proper planning and due diligence, homesharing can be a win-win situation for both homeowners and tenants in the face of rising interest rates.
Still wondering what steps to consider when starting your own homeshare? We're happy to help, and we encourage you to reach out to our experienced team at HomeShare Alliance. We can help you on your search for the ideal housemate to suit your lifestyle.