Let’s assume that you are a residential Landlord and you own a single family home.
The best move would be to rent out some, but not all of the property.
So, you have 123 Main Street. It includes a front yard, parking for 4 vehicles on the driveway and a two car garage, backyard, and basement.
So, what do you rent out? 99.9% of Landlords rent it ALL out!
Maybe, you would increase your bargaining position if you rented it out in parts, or retained parts for yourself.
So, rent the house, meaning the main floor and the upstairs. Retain the rest. You could rent out the parking on the driveway to a neighbour. That would prevent your Tenant from using the driveway, or alternatively renting it out to someone else.
They don’t actually need the basement. Then, you keep it. This provides you with continual access to the property, should there be any concerns.
Control your own property!
Specifically, you need to define what is included in the “leased premises”. If you say nothing, that means all of 123 Main Street, so divide it up.
Brian Madigan LL.B., Broker