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Every fall, thousands of students from around the world head to learning institutions in Ontario. They have many housing options, but some of them prefer to rent rooms in people's houses, an arrangement that enables them to keep expenses down.

For homeowners, the extra income can help with the mortgage or bills, but as St. Catharines resident Sheryl Cobban has found out, there can be other payoffs as well.

Ms. Cobban has been renting out rooms in her modest two-storey, three-bedroom house for 10 years. She provides students with a double or queen-sized bed, a desk, lighting, Internet access and cable TV.

The rental fee goes toward her gas, hydro and other household bills. But beyond that, Ms. Cobban, who is divorced, simply enjoys having the students around.

Toronto real estate agent Marlene Auspitz of Royal LePage Real Estate Services Ltd. says many of her clients rent out space to students once they've settled into a new home. In fact, some factor in rental income and the space required when they are planning their purchases.

Rental rates in the Southern Ontario area vary, but generally run about $400 a month for a room only, and $700 to $750 for a room and meals.

It's not only money that attracts owners to the practice, however. "Many people like the idea of having someone else in their home for company," Ms. Auspitz says.

Her experience has shown that the largest percentage of clients who go this route are women — often divorced, single or single mothers — buying a house on their own.

Ms. Cobban, who started in 1998 after she and her husband divorced, stresses that she does it for the enjoyment she gets out of the experience. A special challenge, she says, is making guests from foreign countries feel at home. She has done everything from teaching the art of pumpkin carving to taking a young woman to a wedding to show her how North Americans can pull out all the stops to celebrate a marriage.

"I have always had foreign students, mainly girls and mainly from Asia," she explains. "I got the idea to have students come here when one of my daughter Heather's friends was doing a co-op program and stayed here. I put an ad in the newspaper, but after that I always had young people coming and wanting to stay here."

So what about the horror stories? The partying. The noise. The legendary messes. The back talk. Surprisingly, nobody seems to have encountered any Animal House behaviour.

"I interview the students and I don't have a lease," Ms. Cobban explains. "If they don't want to be here, then they shouldn't. They cook for themselves and clean up, and they use my kitchen. Sometimes we eat together and I get to try some unusual things to eat.

"I let them have their friends over and have parties, and even though they have TV in their rooms, they sometimes come and watch with me.

"The students I have had have tremendous respect for others and are very gracious and generous."

Student tenants offer some unique advantages to homeowners. They are generally transient renters: if a situation does not work out, the student will finish the course and move on. And given the length of some courses, rental terms can be as short as a few weeks.

And when a homeowner is simply renting out a room to a student, the provisions of Ontario's Tenant Protection Act do not apply. Translation: If a student is really unbearable, it's easier to change the situation since there is less red tape involved.

There are legal restrictions a homeowner has to be aware of, however. They involve such issues as the number of unrelated people who can live in a home without the owner having a licence, and whether a basement bedroom is legal. It's important to check with your municipality about these regulations.

Ms. Cobban also recommends expanding home insurance coverage. "My company told me that my family probably wouldn't sue me if they fell on the ice, but someone not related might. The extra insurance probably costs about $25 a year."

Her startup costs were minimal. "Most of the furniture I bought was used, from people downsizing or moving two homes into one. I have bought some linens but not that much — a set of sheets, maybe, for each bed," Ms. Cobban says.

A further point to consider: Ontario renters get a tax credit, so if a landlord doesn't declare the income and a particular credit is checked out, there could be problems.

"There are organizations attached to all the universities … that are geared to student housing," Ms. Auspitz points out. "Provided the accommodation is within a certain price range, homeowners can advertise free on [their] websites. I think it is a very good idea to use this kind of help when buying a house."

Although the money is a great help with mortgages and bills, the practice is not for everyone. "It is an intrusion on your privacy," Ms. Auspitz cautions. "You can't run around in the nude or bicker with your husband. I would say it is not something to do only because of dire financial need. You have to be ready and able to enjoy the company and the process."

A quick rental guide

Thinking of renting space to students? Establish your goals.

If having company around the house and making some extra cash is appealing, this could be for you.

Analyze your space. Do you have a spare bedroom? How about a bed, desk and proper lighting? Giving Internet access and a TV will be good as well.

Check out the local schools, colleges and universities. Most have websites and a department that is in charge of student accommodation. For an in-depth experience, consider schools that are teaching English. Your student will be learning, and chances are you will learn about another culture, too.

Decide on some rules. Will you allow smoking or overnight guests? Parties?

Special to The Globe and Mail