The Risks and Rewards of Being a Landlord Who Lives in the Same Building
- Abask Marketing
- 2 days ago
- 4 min read
For first-time and seasoned real estate investors alike, owning a multi-unit property and living in one of the units is a growing trend in Ontario’s hot housing market. It’s a way to generate rental income while reducing your own living costs, a smart move for those looking to build long-term wealth.
But being a landlord who lives in the same building as your tenants comes with a unique set of pros and cons. The rewards can be meaningful, but the risks are just as real.
At Regalway Homes, we help clients navigate these decisions every day. If you’re considering this route, here’s what you should know before handing over the keys or moving in.
Why More Canadians Are Becoming Onsite Landlords
Housing affordability has made creative investment strategies more attractive than ever. According to the Canada Mortgage and Housing Corporation (CMHC), Ontario continues to face an affordability crisis, with the average rent for a two-bedroom unit in Toronto rising 7.3 percent in 2023 alone (CMHC, 2024).
One increasingly popular solution is “house hacking”: purchasing a duplex, triplex, or laneway home and living in one unit while renting out the others. This allows landlords to offset their mortgage with rental income while maintaining greater oversight. With the right setup, this can fast-track your path to financial freedom.
The Rewards of Living in the Same Building as Your
Tenants
1. Passive Income with Hands-On Oversight
Perhaps the biggest reward of being a live-in landlord is earning rental income while staying closely connected to your property. Repairs, tenant issues, and maintenance can be addressed quickly without relying on a third party. This can also mean fewer surprises and lower management costs over time.
The Canadian Real Estate Association reports that rental demand remains strong in urban and suburban areas across Ontario, making this setup a reliable way to build wealth through passive income (CREA, 2024).
2. More Affordable Living in High-Cost Areas
Living in a property you partially rent out can help offset your cost of living, especially in high-demand neighbourhoods. It’s an accessible way to live in a desirable area without stretching your budget.
As of early 2024, the average price of a detached home in the Greater Toronto Area exceeds $1.3 million (TRREB, 2024). Shared housing arrangements can make this type of investment more feasible for solo buyers or young families.
3. Building Long-Term Equity
Every mortgage payment you make builds equity in your property. When combined with rental income, this creates a powerful foundation for financial growth. Living in the property allows you to oversee and protect your investment firsthand.
Regalway Homes clients often begin their investment journey this way, using their first income property as a springboard for future acquisitions. It’s a tried-and-true approach that aligns with our mission: helping people invest smartly and grow their portfolio with confidence.
The Risks of Living Where You Landlord
1. Blurred Boundaries
When you live close to your tenants, you may find it hard to separate your personal life from your role as a landlord. Tenants might knock on your door late at night, expecting immediate attention to issues, or treat you more like a roommate than a property owner.
Tip: Set clear communication guidelines from the beginning. Create “office hours” to handle tenant issues and provide written instructions for non-emergencies. Consider a property management app to keep interactions professional and streamlined.
2. Strained Relationships
Living in the same building can make it awkward to address late rent, lease violations, or complaints. Even friendly tenants can become difficult to manage if boundaries aren’t respected. These challenges can take a toll emotionally and financially if not handled correctly.
Tip: Treat tenant relationships as professional from day one. Use formal lease agreements, issue receipts, and document interactions. If tensions rise, don’t hesitate to bring in a third-party mediator or legal guidance from Ontario’s Landlord and Tenant Board.
Source: https://tribunalsontario.ca/ltb/
3. Noise, Privacy, and Lifestyle Clashes
Whether it’s a tenant hosting guests late into the night or using communal areas differently than you’d like, living on-site exposes you to daily lifestyle differences. This can impact your own enjoyment of the home.
Tip: Include clear house rules in your lease agreement and enforce them consistently. Choose tenants who are a good fit not just financially but also culturally and socially. Trust your instincts and screen thoroughly.
Why Regalway Homes Is the Right Partner for Landlords
At Regalway Homes, we’ve helped hundreds of landlords and aspiring investors decide if living in their own rental property is the right path. We help you:
Identify properties in the GTA with strong income potential
Navigate zoning laws and multi-unit property restrictions
Develop lease agreements that protect your rights
Create a strategy to build your portfolio over time
We know what works because we’ve seen it work, and we’re ready to help you take the next step confidently.
Final Thoughts: Is Living in Your Investment Property Right for You?
Becoming a live-in landlord can offer huge rewards: lower living costs, extra income, and long-term equity growth. But it also comes with responsibilities and risks that shouldn’t be overlooked.
If you’re considering this investment path, let Regalway Homes help you weigh the options, find the right property, and start earning smart.
Ready to Learn More?
Your next investment move could be closer than you think. Visit www.regalwayhomes.com or book your consultation today.
Let’s make your real estate investment goals a reality.
Sources Used:
CMHC. (2024). Rental Market Report. https://www.cmhc-schl.gc.ca/en/blog/2024/canada-rental-market-tightest-on-record
CREA. (2024). Monthly Statistics Report. https://www.crea.ca/news/canadian-home-sales-edge-up-in-march/
TRREB. (2024). Market Watch. https://trreb.ca/index.php/market-news/market-watch
Ontario Landlord and Tenant Board. (2024). https://tribunalsontario.ca/ltb/
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