Are you an investment savvy property owner that’s been contemplating turning the unused lower half of your home into a legal secondary suite? As one of the most highly in-demand features for new homes and basement renovations in general, secondary suites can give you the ability to generate passive income in the long term. If you’ve been debating making the leap to becoming a future landlord, don’t miss our quick rundown of what you need to know before constructing a legal secondary suite. Read on to learn more!
In-Law Suites Vs Legal Secondary Suites
Before we jump into a few of the qualifiers for legal secondary suites, it’s important to spend a moment establishing the difference between a rentable suite and an in-law suite. If you purchased a home with an in-law suite already included in the basement, or have plans to make one for a family member who will be residing with you in the future, it’s crucial to note that this is not the same as a legal secondary suite. While both may have bedrooms and a dedicated living area, an in-law suite cannot legally generate revenue, and is held to much different standards than the extensive safety and building requirements attached to a legal suite. The city has also become much more stringent with the requirements for in-law suites, so it’s important to be aware of the standards in place for both.
With that in mind, if you’re hoping to build a legally secondary suite, you’ll want to further consider the following:
Is Your Property Able to Accommodate a New Suite
As we mentioned above, the City of Edmonton has extensive guidelines and requirements for legal secondary suites that are designed to ensure tenant safety. Even if you may have enough space to facilitate a suite, there’s far more that goes into the build to ensure that your property adheres to all zoning and bylaw standards. If the house as a whole has significant structural components or issues that won’t allow for the key renovations to be made, you may be out of luck, and the reality is…even if your property can accommodate the necessary construction, it will not be a fast turn around. Legal suites are typically a sizeable investment upfront, and if you need to make back your money sooner than later, you may find yourself needing to rethink your timeline.
Landlord Life Isn’t For Everyone
The idea of making passive income from your tenant sounds fantastic, especially when you think of using it to help pay down your mortgage and build for the future. While this is one aspect of being a landlord, the other reality is that you can more than likely expect some bumps in the road when dealing with tenants. Finding trustworthy tenants can be tricky, and even the best intentioned renters are less likely to care for your property as diligently as you would on your own. This means that you’ll need to set aside a portion of your secondary income to cover aggressive wear and tear, fixture replacement, and to deal with any standard repairs that may pop up over time. As a landlord, the care of the property will still ultimately fall to you, and you’ll want to ensure you build a space that can take the extra abuse from an external party living there.
Strict Standards
Secondary suites can be quite the challenge to build, but working with an experienced contractor makes it easy to create a space that meets the current Building Code standard, as well as stylish enough to attract the right renters. Most homes can expect to undergo the following renovations in order to create a dedicated secondary suite:
- Installation of egress windows for emergency exiting
- Separate and private entrance
- Interconnected smoke detectors
- Fire and smoke barriers
- Installation of a secondary heating source
- Secondary or shared laundry
- Separate electrical services
Plan For Success
Secondary suites are a large undertaking, to ensure you get off to the right start, as well as a solid finish, you need to spend some time working with your contractor to identify your long term goals for the property. Regardless of whether you’re hoping to resell in the relatively near future, or are looking to create a longstanding source of revenue, it’s important to have a plan in mind when discussing renovations with your contractor.
Partnering with the right renovation contractor can help you make the leap from owner to property manager confidently. Peak Improvements team of experts offer decades of combined experience, as well as a dedication to excellence. Contact us today to learn how we can make your secondary suite development a breeze!
