ROI Advantages of Secondary Suites or Basement Suites for Canadian Real Estate Investors - Including UniverCity SFU Burnaby Approves Lock-Off Suites

Building ROI Through Secondary Suites: From the Basement Up

Through good times and bad, through economic booms and busts, there is one form of Canadian real estate investing that truly bucks the trend in terms of providing positive cash flow and building return on investment both short and long term. Whether you call Secondary Suites in law suites, accessory apartments or granny flats or even student housing, these forms of Canadian housing form an important role in providing secondary income to property owners and investors. There are many things that need to be considered when renting out a Canadian secondary suite including whether or not city bylaws allow for them, if they meet property regulations and how to get the best rent, but in any case, building ROI through Canada secondary suites is a great way for property real estate investors to build equity and positive cash flow. According to CMHC, secondary suites, which are also known as accessory apartments and basement suites, are a common feature of older homes. In existence for many decaies already, these Canadian secondary suites apartments became illegal in some jurisdictions when zoning bylaws set stringent requirements for the type of Canadian housing that could be accommodated in low density areas. Since the 1980s, secondary suites in Canada real estate markets have been recognized by policy makers as one of the most cost effective ways providing affordable rental housing in all major cities and towns in Canada. In addition, these secondary suites, basement suites and accessory apartments also provide great homes for younger singles and couples whom the extra income from a rental unit makes housing affordable in high cost areas. This also allows the younger generation to save more money and save it quicker in order to purchase their own piece of Canadian real estate. Many municipalities across Canada real estate are reviewing their bylaws and standards governing secondary suites in Canada to access whether they can be relaxed. Some cities and towns permit Canada secondary suites as ‘of right’ in all single family homes, while others permit them only in designated zones. In even other cases, municipalities permit Canada secondary suites through site specific zoning. Secondary suites in Canada are governed by provincial or territorial building codes that deal with health, safety and fire protection. Secondary suites in Canadian real estate rental markets make up close to one fifth of rental inventory in Toronto and Vancouver. They are also an important source of rental housing in Canada in small towns and in rural areas where there is little conventional rental housing. Secondary suites in Canada real estate can reduce carrying costs to first time homebuyers by up to 25%. For more information on bylaws government Canadian secondary apartments in your specific town or city, consult your local municipality.

More details about City of Vancouver laneway housing permits and applications is located here. If you are looking for more info regarding Downtown Vancouver Secondary Suites and basement suites in the sky or lock-off suites, click here.

Renting Out a Basement Suite? Here Are Some Things to Consider

If you own a home in a municipality that allows for basement suite apartment rentals, here are some things to think about before putting your secondary suite onto the rental market according to Garrett Construction. Make sure you know the local bylaws as if you’re counting on extra income and the city or town does not approve your rental unit or secondary suite rental, you may not be able to afford the home in the short or long term. In addition, there may be miscellaneous rules such as satellite dishes, additional cable or even barbecues that you may consider adding to your rental. If these allowances are not spelled out first, you could end up with strangers messing with your house without your permission. Commercial zoning is another factor when considering renting your secondary suite apartment. Is your secondary suite tenant going to try and run a business form the basement suite? This should be part of the screening process so you know their plans and the potential implications for you in your rental basement apartment. Do the math and make sure you can generate the rent you need from a basement suite apartment rental. Check out the competition in your area. Create rules for your secondary suite house which includes noise, smoking, parking, shared spaces, overnight guests and pets, so that your tenant in your basement suite understands the rules that you set. Screen prospective tenants thoroughly to make sure that they fit within your lifestyle and that you are comfortable with them staying in your own home. Get renovation estimates in case something goes wrong and something needs to be repaired in your Canada secondary suite.

How To Get the Right Basement Suite Tenant for Your Property Investment

If you’re looking for the ideal and perfect tenant for your Canadian basement suite or secondary suite, there are several things you should consider before renting it out. Firstly, flooring, furnishings and lighting are always good to update prior to taking any photos for marketing and ad placements so that your potential future tenant for your basement secondary suite gets an eye catcher where they will view your secondary condo suite. In addition, personal laundry nowadays is a must in terms of a basement suite rental in addition to a modern electric fireplace. You should also consider replacing old kitchens with new cabinetry or updated exteriors as well as when you’re renting out a secondary basement suite, you’ve got to step it up a notch and replace old bathroom vanities, install good faucets, hang a nice mirror, replace old toilets, tubs and surrounds. Also, don’t skimp on finishing and fixings in your basement secondary suite condo for rent as your potential tenant will be comparing your rental home to others in the same area that have been updated. All of these factors will increase your ROI or return on investment for your secondary suite.

Burnaby Basement Suites in the Sky

A recent article published talked about the legalization process for secondary basement suites in the sky in condo developments in the City of Burnaby in the Greater Vancouver area. It might not be everyone’s idea of a basement suite or secondary suite, or even an accessory apartment, but the City of Burnaby may just be the first municipality in the world to legalize secondary suites in highrise condo apartments. Also called ‘lock-off’ suites, these secondary suites in the sky enable condo home owners and investors to do what those of detached and semi-detached homes have been doing for years – rent out extra space that they do not need. For property investors in Burnaby real estate market, it might provide another great rental option in Vancouver and other cities where high purchase prices mean they must maximize income potential to support mortgage payments on their condo investments. And in Burnaby real estate, some observers believe it might provide a solution to the increasingly thorny issue of where to house the university students and working singles who drive the economy. The Burnaby basement suites in the sky are basically secondary condo suites in high rise tower residences. The City of Burnaby recently amended its bylaws to approve lock off suites within up to half of the rental apartments and townhomes at UniverCity, a condo community being developed on Burnaby Mountain adjacent to Simon Fraser University. The secondary lock-off condo suites at UniverCity must be at least 240 square feet, and are permitted to have their own entry from the corridor, as well as their own bathroom and cooking facilities. The secondary lock-off Burnaby suites, ranging in size from 240 to 285 square feet, are renting from $525 to $750 per month. By comparison, in Vancouver real estate market, where the city is reportedly looking into allowing such secondary suites in lock-off suites, a new or recently renovated one bedroom condo apartments rents for about $1200 per month, while basement suites fetch about $750.