Toronto

The 5 Things Your Home Needs to Have Before You Suite It

You have thought about if a secondary suite is right for you and decided that you want to take the plunge, Congratulations! There are lots of great houses on the market, but not all of them will be great for adding a legal suite. You can of course look to buy a home that already has a suite in it, but most of these are not legal, and if you get reported by neighbours or tenants the city can shut you down. And those that are already legal can have a high price tag.

There are many homes that have the potential to become great income properties, and all it takes is a bit of research and a good eye to see a diamond in the rough. As you look for your perfect investment property or “house hack”, keep the following criteria in mind to make sure you set yourself up for success.

1. Your House is Properly Zoned for a Suite

In each city zoning regulations are a little bit different. Cities like Edmonton have it the simplest, where any residential property can contain a secondary suite. Calgary, Vancouver, and Toronto however need to be zoned in a specific sub-zone (ex; R1, RT-1) that allows for multi-family dwellings. The best thing you can do is search your cities website, or call their number to get the zoning criteria.

Knowing the proper zoning criteria can help you filter your searches for houses that fit within your cities guidelines. Many realtors have programs that will only show you houses with the proper zoning. You can also check websites like mls.ca to look for homes on your own in areas that you know have the right zoning.

If you are currently living in a home that you would like to suite but it is not zoned properly then all is still not lost. You can always apply for an exception through your city council. A lot of times this also involves connecting with your neighbours to get their approval of having a suite.

Some neighbours might not like the idea of having multifamily homes in their neighbourhoods. The Calgary Journal did some research on secondary suites that were appealed, and found that the top two reasons for neighbours appealing had to do with privacy concerns, and benchmark number 2…

2. Have Plenty of Parking

When you are looking to buy a home with a suite, parking is something that you need to take very seriously. We recommend making sure that there is at least parking available for 4 vehicles around or within your property lines. An example of this could be a lane home that has a parking pad on the back of the house that can house 2 cars, and street parking at the front of the house. Or a corner lot with a front facing garage and parking on the side of the house.

Parking is a really big deal, and if you want to keep your tenants and neighbours happy then make sure that the home that you buy has plenty of parking spaces. If the house you are looking at does not seem to have many parking spots then it is not a home worth purchasing, even if it has the proper zoning.

3. Needs a Separate Entrance

When looking for a home to add a suite into, having separate entrances are one of the simplest ways to decide if a house is worth viewing or not. Houses with walkout basement entrances are ideal, or homes that have a door that leads directly to stairs that take you to the basement work too.

That is not to say that having a single entrance never works however. If the entrance to a home can be separated into a common space with an inside door leading to the upstairs and another door leading to the suite downstairs then this could also work for you. However, if the only way to get to the basement is through stairs in the middle of the house then adding a basement suite is usually not worth doing.

You always can core out a door on the side of a house, but the costs of doing so are pretty high, and I would not recommend doing this on your first investment home.

4. Has Big Enough Windows in Basement Bedrooms

This is not just about providing natural light into a home. Safety is the name of the game when looking at windows. The main reason why there are so many regulations to follow is because Cities want to make sure that the places that people live in are safe. If a fire were to break out in the basement and a tenant was trapped in their room how would they get out? The windows of a bedroom have to be large enough for an adult to escape from.

Those regulations vary by small amounts from city to city, but a general rule of thumb is about 4 square feet or larger. If you look at a window and think “I can’t get out of that” then it is probably too small. Making windows larger is also an option, and it costs less than a door, but you may have to add window wells if you need to dig deeper.

5. The Mechanical Room is Accessible

This is actually less of an issue now in some major cities like Calgary, but in quite a few cities through out Canada your mechanical room (or at least the electrical panel) needs to be accessible for both upstairs and downstairs tenants. That means that if your mechanical room is located in an area in your basement that can not be easily turned into a common space then you will have to get it moved to a space that can be. This can be an absolute deal breaker for many homes.

Fortunately these rules seem to be changing. In Calgary, for example, so long as the basement suite tenant, and landlord, can access the mechanical room, all that you need to do is add a clause in your contract saying that you will access the mechanical room within 24 hours if requested by the upstairs tenant. This means that if a power breaker flips, your upstairs tenant needs to contact you or the basement tenant, and it has to be fixed by the next day. Inconvenient for the upstairs tenant, yes. But this change alone has meant that so many more homes have the potential to now be suited. This is amazing news for real estate investors, and a small price to pay in the long run if it means more legal suites in a growing city.

If you are unsure what the rules are for your city, the best thing to do is give the building and development department a call. They normally do not have this information readily available online.

To Sum it Up

Zoning, parking, entrances, windows, and mechanical rooms. This could sound like a big and scary list to remember as you are looking to find the right home to suite. It takes some pre-work to find the perfect home, but if you take the time to make sure your house can meet these requirements then you will have a more enjoyable suiting process.

Stick with Second-Suite to learn even more about suiting your homes, and as always feel free to share your stories in the comments bellow.

Basement Suite Ceiling Regulations for Calgary, Vancouver, and Toronto

Before you build a legal secondary suite you will want to make sure that the space is meeting all of the legal requirements. Ceiling height requirements can be a simple thing to overlook, but are extremely important to get right (especially when you have to deal with ductwork or stairs). Fortunately, regulations have recently changed, meaning that hitting this requirement has become easier than ever. Read below to learn about the ceiling requirements for basement suites in Calgary, Vancouver, and Toronto.

If you want to learn more about adding a legal basement suite to your home check out Legal Basement Suites: Calgary – The First 4 Steps.

Calgary

In Calgary, the regulations have recently changed, allowing basement suites to have a minimum height of 1.95m (6 feet 4¾ inches).

Ceiling heights can be reduced to 1.85m (6 feet 0? inches) where ductwork and beams make drop ceilings necessary.
Doors within the suite may be reduced to 1.89m (6 feet 2? inches) where required.

Just a few years ago regulations said that ceiling heights had to be a minimum of 6 feet 10½ inches. This means that more houses than ever are capable of becoming legal suites.

Vancouver

Vancouver has also stated that they have relaxed their ceiling height requirements recently, although they are still less lax than Calgary is.

A minimum existing ceiling height of 1.98m (6 feet 6 inches) is required over 80% of the suite area and all exit routes.

The wording on their regulations is a little bit different. Vancouver’s minimum requirement is still easily achievable in most basement suites.

The real question here is what about the other 20% of the suite area? Vague wording like this is usually done on purpose, as it allows for more case by case decisions to be made, depending on the property. The 20% of the area is most likely accounting for ceiling height dips due to ductwork or beams as well, but it does not give a specific minimum. You will want to chat with the Development and Building Services Centre (604-873-7611) to get the right information on your unique property.

Finding regulations for legal secondary suite requirements in Toronto has been a bit of a challenge. I have still not been able to find official guidance on the City of Toronto website, but I have been able to find enough sources stating the same number that I feel confident in the answer. You can find the sources here, here, and here.

The minimum ceiling height is 1.95m (6 feet 5 inches).
The main entrance must be at least 32 inches by 78 inches.

That is is. The city does not give any guidelines on what to do about ductwork or beams, so you will want to make sure that you call the city about any questions in this area. Their general inquiries number is 416-397-5330.

Conclusion

In Calgary, Vancouver, and Toronto, ceiling height requirements should not create too many issues for you. Even in Toronto, where the regulations say that the lowest a ceiling height can be is 6’5″ this is more than doable. With proper planning, and careful consideration on secondary heat sources, you should be able to achieve the ceiling height requirements.

If you have any questions or comments please feel free to share them!

The Hidden Costs of Investment Properties

We believe that owning an investment property is a great decision for many people. There are some hidden costs that investors do not consider when looking to get into rental properties, and we will take a look at them today.

Maintenance and Upkeep

This is a big hidden cost of investment properties that many people overlook. According to the US News the average homeowner spends between 1 and 4 percent of their homes value on maintenance and upkeep. The older that your home is the higher some of the costs can be. Our second home was built in 1978, and there are a few updated that we will need to be making in the upcoming years. We need to replace the fence and update the backyard this summer, and will need to re-shingle the roof in the next 5 years. Both of these project will cost between 4-10K dollars each.

Of course, you don’t have to put money into up keeping your property, but doing so will have a negative impact on the amount of rent you can get, and the type of person willing to rent from your hovel. Home upkeep is always worth doing.

And make sure that your keep all of your receipts! The benefit of maintenance and upkeep on a rental property is that it is all tax deductible! This is a business expense!

Property Tax

Even though you may not be living on the property, you do still have to pay property tax. If you want to find out what your yearly property tax will be you can check it our here for Calgary, Vancouver, and Toronto.

You will want to make sure that you incorporate your property tax into your monthly mortgage payment costs so that you can accurately decide on a fair rent.

Income Tax

Yes, the money that you get from your rent is taxable. Some people skirt this by getting paid under-the-table, especially with illegal suites, but please trust us, it is not worth it.

If you are interested in turning your illegal suite into a legal one learn how to get started here.

If you have a spouse, you can split the income between the two of you if you both have ownership in the house. Before you make any decisions in this area however, I would highly recommend that you talk to a chartered accountant on how to best organize your investment properties.

Conclusion

We hope that you feel more prepared for the costs that are involved in rental property ownership. Wit this knowledge you should be able to better judge your properties and make sure that you can make the most amount possible with them.

Happy renting, and tell us your stories in the comments!

Top 3 Entrance Options for Legal Secondary Suites

There are many different ways that you can provide an entrance into your legal secondary suite, but there are also rules that must be followed. Today we will take a look at secondary suite entrance regulations, and what types of entrances we would recommend.

Regulations

Calgary

In Calgary, the city regulations state that;

The main residence and suite must have at least one exit that leads directly outside. This may be a door that leads to an exterior stair or a door to a common set of interior stairs that is separated from both the main residence and suite.

A stairway used in an exit requires a minimum width of 860 mm and must have at least one handrail.
Handrails should be mounted between 800 mm and 965 mm above the stair. The height is measured vertically from the front edge of the stair tread.
At least one light fixture that can be switched both on and off at the top and bottom of the stairs is required.
A landing must be provided at the top and bottom of all stairs. The landing must be at least 860 mm long and at least as wide as the stairs.

Doors serving the exit are required to be a minimum of 810 mm wide and 1.89 m high. Utility rooms, laundry rooms, furnace rooms and all other doors leading to the exit must also be at least 810 mm wide.

Vancouver

In Vancouver, there are not as many regulations on entrance and exits, and there is no section dedicated to it. However there were two related regulations that I was able to find. They are;

A minimum existing ceiling height of 6’6” is required over 80% of the suite area and all exit routes.
Self-closing devices are required on any interconnecting doors between the principal dwelling unit and the secondary suite.

Toronto

Toronto also has only a few regulations on entrances.

Façade: The exterior façade cannot be significantly altered. For example, adding a second and separate front door may not be permitted.
Size: The Second Suite must be a self-contained dwelling, and in some municipalities(e.g., Toronto) it is required to occupy an area smaller than the owner’s unit. The Second Suite must also have a separate entrance and contain proper kitchen and bathroom facilities.

Basically, your suite needs to have a separate entrance, and you can not add a new door to an existing home.

Although Toronto and Vancouver’s regulations are a bit less detailed than Calgary’s I would recommend using the regulations that Calgary has as a guideline for other cities unless specified elsewhere. Following the Calgary guidelines will basically ensure that you are meeting the safety codes that are needed.

Entrance Types

There are three different entrance options that we will be taking a look at, and I will be ranking them from most to least ideal for a legal suite. Your home is ultimately going to be the biggest deciding factor on what kind of entrance you can have. But if you are building a new house, or looking at homes to purchase, take these thoughts into consideration.

1. Separate Out Door Walk Out Entrance

There really is no better entrance to a home than this. Whether it is a Garage Suite, or a Basement Suite, a walk out entrance does a great job separating the properties and making them feel like their own unique spaces.

For this to work in a basement suite your property would need to be sloped so that the basement at the back of the house becomes ground level. I have personally found that the best basement suites have this feature, as they also allow for big windows and lots of natural light.

2. Common Space Entrance

This is an entrance that you may see commonly in some of the older 4-Plex houses. There is one common door to get you into a common space, and then stairs leading upstairs to the top level of the home, and stairs leading downstairs to the bottom level of the home.

There is nothing inherently wrong with an entrance like this, but it does mean that you and your tenants may be seeing each other than you might like, as you leave during the morning commute. If it means that you can add a secondary suite to your property though, then it is worth it.

3. Separate Entrance with Stairs

This is probably the least ideal entrance to a suite that you can have. Many of these entrances are steep and narrow, making it challenging to bring furniture in and out of the suite. It’s also worth remembering where you live. Canada gets cold, and these entrances need extra maintenance to keep the ice off, and they also need proper drainage at the bottom of the stairs to allow the water to escape. These entrances are also almost always made out of concrete, so if there is any aspect of the entrance that is not up to code, the cost to upgrade is pretty high.

If your entrance is up to code, and the rest of the property is great, then don’t let this deter your legal suite aspirations. This kind of entrance will still work, just make sure that you are ready for the extra steps involved.

To Sum It Up

So long as you make sure that you home follows a few simple regulations, you can easily ensure that you can put a legal suite in your home. There are many ways that you can put a separate entrance in your home, and the more separate you can make them the better.

Please let us know your thoughts in the comments below!