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Hi,

I'm looking at buying this house but it needs a little work inside and outside to bring up the value. It's a house with a basement suite. main floor plus including a 60x30 ft giant dome garage heated hot and cold water and electric industrial door all this and tenant only pays $775 a month. I would move in to have the tenant move out so I can fix it up and the outside to attract a rent of at least $1500 to $1700 whether I rent the main floor and garage together or separately. Separately would be better so not to loose the whole rent if tenant in the house leaves.

My question here is would there be a problem after a year if I moved downstairs to have the tenant leave who is only paying $675 for a full 2 bedroom with a huge kitchen living room concept. I would fix it up to rent for at least $875 to $975.

I know I'm allowed to ask a tenant to leave if I'm going to occupy the main floor but am I allowed to move to the basement suite after a year (or do I have to wait a year?) and ask a second tenant to leave as well so I can rent the main floor? I imagine I could have the whole house to myself if I wanted but to be technical, I won't be occupying the upstairs so it's not quite the same thing.

Anyone with that experience?

Thanks.
 

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Kicking out tenants with the sole purpose of renovating and re-renting to someone else at a higher price is prohibited in most provinces.

I believe the general rule of thumb is you need to occupy the unit for at least a year before re-renting. Otherwise, you will have to offer the unit back to the original tenant first.
 

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After 30 years of being a landlord, I've come to the conclusion you can mostly do what you want, regardless of the law.

Having said that, if you run roughshod over your renters, you will end up only renting to people who are either too lazy to research or have their own record blemishes and will rent from anyone.

When people in the facebook landlord group for my area start citing legalese and suggesting getting legal advice, etc., I know they have not been a landlord for long. We are on our own. We need to take care of ourselves because no one else will. A lawyer is likely to recommend against doing something, even if it is legal, just to indemnify themselves. You cannot spend thousands to handle every situation, the way so many people suggest, and survive as a landlord.

A friend of mine has shut off the gas and removed the front door to get rid of tenants. Fortunately, I've never done anything close to this but he saw his house turn into a drug den and it would have cost him thousands to evict legally. He is a rough character so he gave them the boot and it's not the first time.

I've never heard of a crack-head bringing in the authorities to fight a landlord. A good tenant probably won't, either. It's the bad tenants who are on the fringe of society who will go to anyone who will listen. Understand your tenant and make sure you are on solid ground, if it's someone who is likely to bring in the authorities.

Your situation, on the other hand, is motivated by greed so I urge caution. The most I would do, in your situation, is tell the tenants you are thinking of selling the house and won't renew their lease. Give them tons of notice to find a new place. In my province, we can sell a house free of tenancy so it's legit, to a point. It beats paying the sheriff to evict and paying the various fees involved.

It's a small world. If you conduct yourself in a vicious manner, you will earn a reputation as such. That's why I suggest being as nice to the tenant as you can, even if you are bumping them out. Don't forget to offer a good reference, if they have earned it.
 

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If it's in Ontario, "won't renew their lease" isn't something you can do. Leases automatically turn into month-to-month at the end of the lease.
 

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You can claim the whole house at once if you need it. How big a family do you have? Not that it matters. Move in, for a year and a day, and do your renovations. I never heard you had to justify living in your own house. If you need it for yourself or a close relative that is the end of the matter.
 
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