Small rooming house or guest house

Students, shift and seasonal workers, contractors, people in transition, and longer-stay travellers looking for a lower-cost option than a hotel.

Weekly or monthly rent per room, with extra for meals, laundry or parking if you offer them. Steady occupancy matters most, since you pay the head lease whether or not rooms are filled.

• Property upkeep and basic repairs
• Managing people and conflicts fairly
• Budgeting and record keeping

• Many municipalities license or limit rooming houses, so check zoning and licensing before you commit to a property or lease
• Your landlord must agree in writing to rooming use and sub-letting, and a lease can be ended or repriced at renewal
• Fire code, inspections and safety equipment, which may require costly upgrades
• Provincial tenancy rules and human rights rules on screening and eviction, which vary by province
• Landlord or commercial liability insurance suited to multiple occupants
• WCB/WSIB coverage if you hire cleaners or staff, with rules by province
• Empty rooms in slow months and the cost of upkeep through winter

Startup costs are typically around $20,000 to $90,000, depending on the property lease, furnishing and any fire safety upgrades. Treat these as estimates and check lease terms and licensing before committing.

Monthly revenue is typically around $4,000 to $16,000, depending on how many rooms you let and your local rates. Estimates start from about 15 hours a week, and empty rooms in slow months can reduce income.

Check municipal zoning and licensing for rooming houses, your landlord's written agreement to rooming use, fire code and inspections, provincial tenancy and human rights rules, and suitable liability insurance. Also check WCB/WSIB coverage if you hire cleaners or staff.