Being a tenant comes with certain responsibilities, and one such major responsibility is to use the rented property carefully. This means repairing damage from deterioration throughout your tenancy, as well as telling your landlord about that damage right away so it doesn’t get worse. But what happens when your guest causes damage during a visit?
What’s the difference between a guest and an occupant, and how does that make a difference when figuring out who’s responsible for the damage that someone causes? Read on to learn why this affects a tenant’s responsibilities to their landlord, as well as their tenant insurance.
When is a Guest a “Temporary Guest” at a Residence?
While every tenant has the right to invite temporary guests over, things get complicated when a guest stays longer and starts to act more like a long-term occupant of the rental property. Here’s a general breakdown of the differences between a temporary guest and an occupant:
- A temporary guest is someone who stays for a short period in the tenant’s rented property. While there’s no hard limit for how long a temporary guest stays, they typically do not have a permanent presence on the property. For example, they don’t receive mail at the property or move in their pets.
- An occupant is a person who’s staying on the property for an extended period or indefinitely. They usually establish a more permanent presence through acts like moving in their personal belongings and offering to split utility bill payments with the tenant.
If a guest becomes an occupant without the landlord’s consent, this may complicate liability issues when they cause damage to the property. It may also violate your lease terms, which can be used by your landlord as a ground for eviction.
How Does Damage Caused by a Guest Affect Your Tenant Insurance?
Tenant insurance covers accidental damage caused by tenants and their guests to personal property and the rental unit itself. For example, if a guest accidentally spills something that damages the carpet or breaks a window, then tenant insurance can cover the cost of repair and replacements.
Note that coverage only applies to accidental damage. Suppose the damage was caused intentionally or due to a guest’s reckless behaviour. In that case, your Canadian tenant insurance can deny your claim and you’ll be held liable for those damages out of pocket. Check your policy’s terms and conditions to learn more about its specific limits and exclusions for guest-related damage.
Undisclosed Long-Term Guests Can Negatively Affect Your Tenant Insurance
Having an undisclosed long-term guest can result in higher tenant insurance premiums because their presence affects the risk of providing coverage to a tenant. Simply put, when they extend coverage to you, the underwriting process considers factors that increase or decrease the likelihood that you’ll file a claim. This includes factors like your renting history and credit score.
However, your undisclosed guest isn’t part of that underwriting process – they’re essentially an additional risk they weren’t able to factor in. This can result in increased premiums, denial of claims for any damage these long-term guests cause to the rental property, or even the total denial of policy coverage.
Key Advice from MyChoice
- While you have the right to privacy and to invite visitors, landlords can also set reasonable limits to avoid overcrowding the property and violating occupancy limits. Your landlord can even evict you for having an “unreasonable” number of occupants, so it’s best to check with them first about your guests and how long they’ll be staying.
- Lease agreements can’t require your guests to “check in” with your landlord before they can visit and stay in your rental unit. They also can’t charge guest fees or threaten to raise your rent.
- Each province has its own Residential Tenancies Act that outlines the responsibilities and rights of both tenants and landlords. Familiarize yourself with the Act in your province and territory so you know your rights in the event of a dispute.