In Ontario, a secondary suite is a self-contained living unit that is located within a single-family home or on the same property as a single-family home. This type of unit typically includes a separate entrance, kitchen, bathroom, and living space, and is designed to be rented out to tenants as a separate living space.
Some examples of secondary suites in Ontario include basement apartments, in-law suites, and garden homes. These types of units are a great way for homeowners to generate rental income and provide affordable housing options for tenants.
But, keep in mind that there are specific legal requirements and building code regulations that must be followed in order for a secondary suite to be considered legal and safe for tenants to occupy.
If you're thinking of building a secondary suite in Ontario, there are a few legal requirements you need to keep in mind. First of all, the unit must comply with the Ontario Building Code and any local zoning bylaws. This means it needs to meet certain safety standards, such as having proper exits, ventilation, and fire separation between the main house and the secondary suite.
You'll also need to obtain the necessary permits and approvals from your local municipality before you can start construction.
Hicks Brothers Contracting is happy to complete the permit application on your behalf, so you don’t need to worry about the hassles and learning curve that comes with this step. We can ensure that the permit application is complete and submitted properly so you won’t get hung up on time delays due to error or missing information.
To submit a permit application in Peterborough, there are a few steps that need to be followed. First, we'll need to determine if your property is zoned for a secondary suite. This information can usually be found on the City of Peterborough's website or by contacting the planning department.Once we've confirmed that your property is eligible, we'll need to prepare a set of plans and specifications for the secondary suite that comply with the Ontario Building Code and any local bylaws. These plans should include details such as the unit's layout, materials, and dimensions.
Next, we'll need to submit your permit application to the City of Peterborough's building department. This application will typically include your plans and specifications, as well as information about the proposed use of the secondary suite and any other relevant details.
After submitting your application, the City of Peterborough will review your plans and may require revisions or additional information before issuing a permit. Once your permit has been approved, we'll be able to begin construction on your secondary suite.
Keep in mind that the permit application process can be complex and may vary depending on the specific details of your project, which is why we are happy to include this in our services.
The zoning requirements for building a secondary suite in Peterborough depend on the property's specific zoning designation. In general, secondary suites are permitted in residential zones, subject to certain conditions.
In Peterborough, secondary suites must comply with the Ontario Building Code, which outlines the minimum standards for construction and safety in buildings. Some key requirements for building a secondary suite include:
Fire separation: The secondary suite must be separated from the main house by fire-rated walls and doors to ensure that a fire in one unit doesn't spread to the other.
Ventilation: The unit must have proper ventilation to ensure that occupants have access to fresh air and to prevent the buildup of moisture and pollutants.
Ceiling height: The unit must have a minimum ceiling height of 6 feet 5 inches in all habitable areas.
Emergency exits: The unit must have at least one emergency exit that meets the Ontario Building Code's requirements for size, location, and accessibility.
There are more specifications that need to be addressed, but these are a few of the big ones.
Fire safety is an important consideration when building a secondary suite, and there are several requirements that must be met to ensure that the unit is safe and meets code.
Fire separation: The secondary suite must be separated from the main house by fire-rated walls and doors. These fire separations must be constructed in accordance with the Ontario Building Code to ensure that they can resist the spread of fire for a specified period of time.
Smoke alarms: Smoke alarms must be installed in every bedroom, outside of each sleeping area, and on every level of the secondary suite. They must be interconnected so that if one alarm goes off, all alarms will sound.
Carbon monoxide detectors: Carbon monoxide detectors must be installed outside of each sleeping area if there is a fuel-burning appliance in the secondary suite or if the unit is attached to a garage.
Emergency exits: The secondary suite must have at least one emergency exit that meets the Ontario Building Code's requirements for size, location, and accessibility. Emergency exits must be located in areas that are easily accessible and visible. This could be a second exit door, or an egress window.
Electrical safety: Electrical systems must be installed in accordance with the Ontario Electrical Safety Code to ensure that they are safe and do not pose a fire hazard.
It's important to note that fire safety requirements can vary depending on the specific details of your project.
Proper insulation and soundproofing can be complex, and it's important to work with a licensed professional who has experience with secondary suite construction. We can help you choose the right materials and techniques for your specific project and ensure that everything is properly installed and meets code requirements.
Insulation: Proper insulation is key to creating a comfortable and energy-efficient living space in your secondary suite. The Ontario Building Code sets minimum insulation requirements for walls, floors, and ceilings, but you may want to consider exceeding these requirements for added comfort and energy efficiency. Some popular insulation materials include fiberglass batts, cellulose, and spray foam insulation. It's important to make sure the insulation is properly installed to avoid gaps or voids that can reduce its effectiveness.
Soundproofing: Soundproofing is important to ensure that the occupants of your secondary suite are not disturbed by noise from the main house or outside. Some effective soundproofing techniques include using acoustic insulation in walls and ceilings, adding resilient channels to walls to reduce vibrations, and installing sound-absorbing panels. It's also important to seal any gaps or holes that can allow sound to travel between units.
Windows and Doors: Windows and doors can be a major source of heat loss and noise transmission. Choosing high-quality, energy-efficient windows and doors can help to improve insulation and soundproofing. Double-pane windows with low-e coatings are a popular choice for energy efficiency, and doors with weatherstripping can help to reduce drafts and noise.
HVAC Systems: Your HVAC system can also play a role in insulation and soundproofing. A properly sized and installed system can help to maintain a comfortable temperature in the secondary suite and reduce noise transmission. Ductwork should be properly sealed to prevent air leaks and reduce noise transmission.
We're happy to walk you through some of our innovative design strategies so that we can generate the most optimal use of your space for the secondary suite which will attract high rents and great tenants.
Here are a few ways to determine the general rental value of your secondary suite in Peterborough.
Research the market: Start by researching the rental market in the area where the secondary suite is located. Look at listings for similar properties and see what they are renting for. Consider factors such as location, size, amenities, and condition.
Calculate expenses: Determine your expenses associated with the secondary suite, such as mortgage payments, property taxes, utilities, maintenance, and repairs. Subtract these expenses from the rental income to determine your net operating income (NOI).
Determine the cap rate: The cap rate is a way to measure the return on investment for a property. To calculate the cap rate, divide the NOI by the property's value. Compare the cap rate to other properties in the area to determine if the rental value is reasonable.
Consider value-add opportunities: If the rental value of the secondary suite is lower than you'd like, consider making improvements to the property to increase its value. This could include adding amenities such as a separate washer/dryer, second bathroom or an additional parking space, or improving the overall condition of the property.
When you rent out a secondary suite, you will need to report the rental income on your tax return. This income is subject to taxation, and you will need to pay taxes on the rental income you earn.
However, there are also some tax deductions and credits that you may be eligible for as a landlord of a secondary suite. For example, you may be able to claim a deduction for expenses related to the rental property, such as property taxes, mortgage interest, repairs, and maintenance. You may also be eligible for the Canada Revenue Agency's (CRA) Rental Income Tax Credit, which can help to offset some of the taxes you owe on your rental income.
It's important to keep accurate records of all rental income and expenses related to your secondary suite, as you will need to report this information on your tax return each year. It's also a good idea to work with a tax professional who can help you navigate the tax implications of renting out a secondary suite and ensure that you are taking advantage of all available deductions and credits.
Adding a secondary suite to your property can have many benefits. It can be a great option if you want to provide a safe and comfortable living space for your aging family members, if you're a first-time home buyer looking to generate extra income to offset living expenses, or if you're an investor looking to maximize your ROI on your investment property.
By designing your suite in the best way possible, you can make the most of your space and yield a high return on your investment, which can help cover a large portion of your mortgage costs.
In Ontario, there are laws that specifically apply to secondary suites, as well as general landlord and tenant laws that apply to all rental properties. Here is an overview of some of the key laws that landlords and tenants should be aware of regarding secondary suites in Ontario:
Zoning laws: Before building or renting out a secondary suite, it is important to ensure that it is legal under the local zoning bylaws. Zoning laws regulate the use and type of buildings allowed in specific areas.
Building code requirements: Secondary suites must comply with the Ontario Building Code, which sets out minimum standards for construction and safety.
Fire safety requirements: Secondary suites must meet certain fire safety requirements, including the installation of smoke and carbon monoxide detectors, fire-resistant separation between the suite and the rest of the building, and a second means of escape from the suite.
Rental agreements: Landlords and tenants must have a written rental agreement that outlines the terms of the tenancy, including the rent amount, payment schedule, and rules for the use of the property.
Rent control: In Ontario, there are rent control laws that limit the amount that landlords can increase rent each year for most rental units, including secondary suites.
Maintenance and repairs: Landlords are responsible for maintaining their rental properties and ensuring that they are in a safe and habitable condition. Tenants are responsible for keeping the property clean and reporting any necessary repairs to the landlord.
Evictions: Landlords can only evict tenants for specific reasons, such as non-payment of rent or breach of the rental agreement. The eviction process must follow specific legal procedures.
It is important for both landlords and tenants to understand their rights and responsibilities under Ontario's landlord and tenant laws.
As secondary suite contractors in Peterborough, here are some of the local benefits of building a secondary suite:
Additional income: Building a secondary suite in Peterborough can provide a steady stream of rental income for homeowners, which can be particularly beneficial in areas with high demand for rental units.
Increased property value: Adding a secondary suite to a property in Peterborough can increase its overall value, making it a more attractive investment for homeowners.
Addressing housing needs: Secondary suites provide an additional source of affordable housing in Peterborough, which is particularly important in areas where rental units may be scarce or expensive.
Legalization: Building a secondary suite can help to legalize existing unpermitted or non-conforming units in Peterborough, which can provide peace of mind for homeowners and tenants alike.
Flexibility: Secondary suites can be used for a variety of purposes in Peterborough, including housing for family members, rental income, or as a home office or studio.
Customization: Building a secondary suite allows homeowners in Peterborough to customize the space to meet their specific needs and preferences. This is especially beneficial if you plan on renting for a shorter period of time and then using the suite for your own family in the future.
Community benefits: Building secondary suites in Peterborough can help to provide affordable housing options that can contribute to a more vibrant community.
Overall, building a secondary suite in Peterborough can provide a range of benefits for homeowners and tenants alike.
Here are some ways homeowners can finance the construction of a secondary suite:
Home Equity Line of Credit (HELOC): A HELOC is a revolving line of credit that allows homeowners to borrow against the equity in their home. This can be a good option for financing a secondary suite, as the interest rates may be lower than other types of loans.
Personal Loans: Homeowners can also consider taking out a personal loan to finance the construction of a secondary suite. However, interest rates may be higher than other types of loans, and approval may depend on the homeowner's credit score and income.
Refinancing: Refinancing the existing mortgage on the property can also be an option to access funds for building a secondary suite. Homeowners can potentially get a lower interest rate on their mortgage, while also accessing funds for the construction project.
Government Programs: There are some government programs in Ontario that offer financial incentives for building secondary suites, such as grants or low-interest loans. Homeowners can check with their local government or housing authority to see if they qualify for any of these programs.
Joint Venture: Another option is to partner with an investor or another homeowner to finance the construction of a secondary suite. This can be a good option for homeowners who may not have the upfront funds to finance the project on their own.
It's important to note that a secondary suite in Ontario doesn't necessarily require separate utilities. However, investing in the additional cost to add a second electrical panel and water meter can offer added value to your property. Moreover, this allows the tenant to be responsible for the utility payments, leading to better monthly cash flow for the homeowner. Ultimately, this option provides flexibility and can be an excellent investment for those seeking a long-term return on their property.
A secondary suite can have a maximum of two bedrooms.
It's important to ensure that your secondary suite meets the minimum finished ceiling height requirements in Ontario. The standard ceiling height for a secondary suite is 6 feet 5 inches over all required room areas and any location that's normally used as means of egress. However, if your house is built within the last 5 years, it's essential to note that a ceiling height of 6 feet 11 inches throughout is required. Adhering to these regulations not only ensures compliance with the building code but also provides a safe and comfortable living space for tenants.
It's vital to prioritize safety measures in a secondary suite. To comply with building codes in Ontario, a second means of egress must be provided in case of an emergency. This typically involves installing egress windows that meet specific size requirements. To qualify as an egress window, it must have a minimum of 3.77 square feet of openable glass, with no dimension less than 15 inches.
In a secondary suite, only one egress window is necessary, which can be located in a bedroom or common area. It's essential to ensure that the window is easily accessible and can be opened without the need for special tools or knowledge. By adhering to these regulations and prioritizing safety measures, you can ensure that your secondary suite provides a secure and comfortable living space for tenants.
While having two separate exterior doors, each specific to each unit, is ideal, it may not always be feasible. In cases where space or other constraints prevent this option, sharing one exterior door leading to a common area may be a viable alternative.To ensure compliance with building codes in Ontario, proper fire and sound barriers must be installed to separate both units from the common area. This will help to prevent the spread of fire and noise between units, ensuring the safety and comfort of tenants.While the ideal situation is to have separate exterior doors for each unit, it's important to weigh the options and make the best decision for the specific situation.
The parking requirements for a secondary suite in Peterborough, Ontario depend on the zoning of the property. The city of Peterborough is divided into three parking zones, and you can determine which zone your property is in by referring to the Peterborough City Parking Zone Map.
If you don't get a permit for your secondary suite in Peterborough, it could lead to some negative consequences. Even if you think you can get away with it, all it takes is one complaint from a neighbour and the city may shut down your suite. Not only will you have to legalize your suite or take it down, but it can be a costly process that involves permits for removal, inspections, and the removal of appliances and kitchens. This can impact your ability to generate rental income and even affect your ability to pay your monthly mortgage. So, it's important to get the proper permits and approvals to avoid any potential issues down the road.
In general, banks and other lending institutions may not recognize rental income from an unpermitted or illegal secondary suite when evaluating a borrower's income for a mortgage or other loan. It's important to follow all necessary regulations and obtain the proper permits to ensure that your rental income is recognized and legitimate.
Adding a legal secondary suite to your property can improve its value. A legal suite adds an additional source of income to the property, making it more attractive to potential buyers and increasing the property's overall value. In addition, legal suites are highly sought after in the rental market, which can also increase the value of your property.
Yes, you can use the B.R.R.R. (Buy, Rehab, Rent, Refinance, Repeat) strategy with a legal secondary suite in Peterborough. In fact, having a legal suite can increase your chances of getting approved for a refinance since the rental income from the suite is considered legal and stable. However, it's important to note that the initial purchase price and cost of renovations will still need to make sense financially in order to make the strategy work. It's recommended to consult with a real estate professional and/or a financial advisor to determine the feasibility of using the B.R.R.R. strategy for a particular property.
Yes. In Peterborough, secondary suites are permitted in townhomes and semi-detached homes.
Adding a secondary suite to your property can be a great investment, but it's important to note some restrictions in Peterborough. One of the requirements is that your ceiling height must be at least 6'5" if your home was built in the last 5 years, or 6'11" if it was built more recently. Additionally, if your property is located in a floodway, you won't be able to add a secondary suite. We make sure to check the zoning and regulations for your property to ensure your property is eligible for a secondary suite prior to beginning the process.
If you want to find out whether your property is located in a floodplain in Peterborough, you can take advantage of a great resource provided by the city. Their GIS System allows you to search for your property address and add the "Floodplain" layer under the Natural Resources Areas tab to view the floodplain map. However, if you are located outside of Peterborough, you can check your local municipality's website to see if they offer a similar mapping system. This is an important step to take before considering adding a secondary suite to your property, as being located in a floodplain can prevent you from doing so.
Under the new Act, municipalities are required to allow for secondary suites in detached, semi-detached, and townhouses that comply with certain criteria, such as fire and building codes. Additionally, the Act requires municipalities to process and make decisions on applications for secondary suites within 90 days of receiving a complete application.
These changes will likely make it easier and faster for homeowners to obtain permits for secondary suites in Peterborough and other municipalities in Ontario, as long as the suites meet the necessary criteria. However, it is important to note that each municipality may have its own specific requirements and regulations regarding secondary suites, so it is always best to consult with local officials and professionals before starting any construction or renovation projects.
To get a quote for your secondary suite project, please send us an email that provides detailed information about the project you would like us to complete.
Our email address is hicksbroscontracting@gmail.com, or reach out by clicking the "contact us" button below!
