With Ontario's real estate market experiencing steady growth, many homeowners are looking for ways to offset their mortgage payments or generate additional income. One popular solution is converting or building a basement apartment. But how much income can you realistically expect from a basement rental in Ontario? Let’s explore.
The Basics of Basement Apartment Income
Basement apartments, also known as secondary suites, are self-contained units within a home. They typically include a bedroom, bathroom, kitchen, and living area, making them an appealing rental option for tenants seeking affordable housing.
Income from basement apartments can vary widely depending on factors such as location, size, amenities, and demand. Here are the key considerations:
Location Matters
Major Cities: In urban areas like Toronto, Mississauga, or Ottawa, a basement apartment can generate anywhere from $1,500 to $2,200 per month. The high demand for rental housing in these cities drives up prices.
Mid-Sized Cities: In cities such as Hamilton, Kitchener-Waterloo, or London, rents typically range between $1,200 and $1,700 per month.
Rural and Small Towns: In smaller communities, basement apartments may rent for $800 to $1,200 per month, depending on local demand and amenities.
Size and Quality Impact Rent
Size: Larger basement apartments with multiple bedrooms can command higher rents. For example, a two-bedroom unit may fetch $200 to $400 more per month than a one-bedroom unit in the same area.
Upgrades: Modern features like new appliances, updated flooring, and ample lighting can justify higher rents. Renters are willing to pay a premium for a clean and comfortable living space.
Separate Entrance and Parking: A private entrance and dedicated parking can significantly increase the unit’s desirability and rental value.
Legal and Safety Considerations
To maximize your income and avoid legal issues, ensure your basement apartment complies with local bylaws and safety regulations:
Building Code Compliance: Ensure the unit has proper ceiling height, ventilation, and fire safety features.
Zoning Laws: Confirm your property is zoned for secondary suites.
Permits: Obtain the necessary permits before construction or renovation.
Non-compliance could lead to fines or eviction of tenants, reducing potential income.
If you’re looking to add income potential to your property with the addition of a basement apartment, reach out to us at SLG Contracting. Our team specializes in creating high-quality, fully compliant basement apartments that can maximize your rental income while enhancing your property’s value.
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