Hey {first_name},
 
Have you considered buying a home with an in-law suite or basement apartment? Do you
want to make rental income but worried the unit may not have the required permits?
 
If you’re in the market, you’ve likely come across the words: “Seller and Agent do not
warrant retrofit of basement apartment” on an MLS listing.
 
Pro Tip:
 
That basement apartment is probably not legal. In fact, 80% of basement
apartments don’t comply with city rules and bylaws and likely wouldn’t be considered
‘legal’.
A secondary suite, such as a basement apartment, is defined as a self-contained rental unit
in a detached or semi-detached house. In order to be considered a legal apartment, it needs
to meet the city zoning, property, occupancy, health and safety, fire and electrical
standards.
 
Risks of buying a house with an illegal basement apartment:
 
  • Anyone can call you out on it. If your tenants, neighbours, or crazy ex-girlfriend make a request to the city to have your second apartment inspected, it will cost you a lot of time and money to legalize it or transform the home back into a single family dwelling.

  • Your lender may not acknowledge the income associated with an apartment that isn’t considered legal.

  •  You may be sued if in the unfortunate case a flood or fire results in an accident or death in the illegal second suite.
 
If you’re considering buying a house with an illegal second apartment, make sure you’re
working with a real estate agent who can help you balance the risks and rewards.
(Shameless plug – that would be me.)
 
Cheers,
 
{email_signature}
 
PS – Want to know the secrets to finding a profitable fixer upper? Stay tuned to find out!

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