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Here's what to consider before adding a rental unit to your home

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With the rising cost of living, you may have thought about ways to make extra money and adding a rental unit to your home may have been one of them.

However, there are rules associated with adding a rental unit before taking that leap. CTV Morning Live digs into what needs to be done in this regard with Tonya Bruin, owner of To Do Done. She says you can benefit from the current economic conditions, such as the housing shortage and affordability crisis by using your basement as a rental unit.

"If you can create space for another family, that's fantastic," she said. "So, we've done a few."

Bruin says there are several considerations to take note of:

  • A secondary entrance: Bruin says having a separate entrance for your basement suite is the most important factor. She adds that adding one can be difficult.
    "You can add a separate entrance. There are lots of ways in which we can do that, depending on the configuration of the home, (such as) the backyard (or) the side yard," she said.
  • Height of the basement ceiling: She says that when you consider adding the basement as a secondary unit, you must consider lowering the ceiling, noting that some older homes already come with lower ones.
    "Starting with a relatively high ceiling in your basement is better if you are lucky enough to have that," Bruin added.
  • In-suite laundry: She says an in-suite laundry is very important, noting that it's become a standard that tenants expect. However, adding an in-suite laundry comes with additional costs, such as the cost of plumbing, which is also something to consider, according to Bruin.
  • Utility meters for each unit: Power meters should be incorporated into the secondary unit, she says.
    "When people know they're paying for their own energy, they'll conserve it," she added. "It's good for the homeowner, but it's also good for the environment."
  • Parking: Having extra space for another car is also important, as tenants look for spots to park their vehicles when looking for homes, she says. If you're close to public transit, you can attract a tenant who does not have a car, Bruin adds.

There are other key considerations to take note of, including, zoning Bylaws, building permits, inspections and building code compliance.

In Ottawa, you have to check the geoOttawa tool to see whether you're allowed to have a secondary unit or not. According to the City of Ottawa's website, secondary basement units should have a separate ground-floor entrance. 

In April, the city of Ottawa released a first draft of a new zoning bylaw that is looking to allow fourplexes on all residential lots across the city, eliminating minimum parking rules, ban new surface parking lots in the downtown core and making room for more trees in its new zoning rules. Council will approve the new bylaw by the end of 2025.

More information about adding a secondary unit is available on the city's website. 

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