Your Home During Your Foreign Posting

The National Joint Council’s Foreign Service Directives (FSD) provide allowances and reimbursements for Canadian government employees posted abroad. FSD 16 specifically addresses the disposition of principal residence and associated costs.

What may be covered (subject to your department’s interpretation and your posting terms):

• Property management fees: Some departments reimburse reasonable PM fees as part of your posting allowances. Keep all invoices formatted for reimbursement claims.
• Storage costs: Personal effects stored while the property is rented.
• Lease preparation costs: Legal review and lease preparation for renting your home.
• Insurance differential: The cost difference between your homeowner policy and the required landlord policy may be claimable.

What is NOT covered: Maintenance costs, tenant damage repairs, vacancy losses, mortgage payments, and property taxes remain the owner’s responsibility regardless of FSD provisions.

See our full list of services to understand what Bolden handles that falls outside FSD reimbursement.

When you rent your principal residence, CRA considers the rental income taxable. You must file a T776 (Statement of Real Estate Rentals) with your annual return.

Deductible expenses (reduce your taxable rental income):

Our annual tax summary (delivered each January) categorizes all expenses per CRA guidelines and provides a T776-ready document your accountant can use directly. Check our pricing plans to see what’s included.

Your homeowner’s insurance policy almost certainly does not cover tenant occupancy. You must switch to a landlord policy before any tenant moves in. Failure to do so could void your coverage entirely.

What needs to happen:

1. Notify your insurer that the property will be tenant-occupied. They’ll either convert your policy or cancel it.
2. Obtain a landlord policy covering: property damage, liability, loss of rental income, and tenant-caused damage.
3. Require tenant insurance: Your lease should require tenants to carry their own renter’s insurance ($1M liability minimum is standard).
4. Name your PM company as interested party on the policy so we’re notified of any changes or cancellations.

Typical cost difference: Landlord policies run $200-500/year more than standard homeowner policies. This premium is a deductible rental expense on your T776.

Ottawa-Gatineau straddles two provinces with different tenancy laws. The property’s location determines which rules apply.

An unmanaged property deteriorates. Ottawa’s climate is particularly unforgiving: freeze-thaw cycles, ice dams, furnace demands, and pest pressure all require active attention.

Minimum maintenance obligations (whether you’re here or not):

• Heating: Must be maintained at habitable temperature (min 20°C in Ontario). Furnace failure in January is an emergency, not a maintenance ticket.
• Plumbing: Frozen pipe prevention (insulation, heat tape, faucet drip protocols). Burst pipe = tens of thousands in damage.
• Seasonal: Eavestrough cleaning (spring/fall), HVAC servicing (spring/fall), furnace filter changes (quarterly), smoke/CO detector batteries (annually), water heater flush (annually).
• Exterior: Snow removal (liability if someone slips), lawn care (bylaw violations), deck/fence maintenance.
• Safety: Working smoke detectors on every level and outside sleeping areas (Ontario Fire Code). CO detectors where fuel-burning appliances exist.

Professional property management doesn’t just handle problems. It prevents them. Here’s what changes when your property is actively managed:

• Scheduled maintenance calendar: Every property gets a maintenance profile based on its systems, age, and condition. Tasks trigger automatically by season.
• Quarterly inspections: Room-by-room walkthrough with photos, compared against your baseline. Issues caught early, before they’re expensive.
• Tenant screening: Credit, income, and reference verification. The right tenant reduces maintenance costs and improves property care.
• Financial transparency: Monthly statements, all expenses itemized, annual tax summary. You know exactly where every dollar went.
• Emergency response: Pipe burst at 2 AM? A licensed contractor responds immediately. Not an answering service relaying a message.
• Legal compliance: Correct province, correct forms, correct notice periods, correct rent increase calculations. No accidental violations.