Have you been looking to upsize and find a home that can help with your home purchase?
A suited detached home might be what you are looking for. A lot of the time you may be able to afford more if there is a suite in the house. You should check with your Mortgage Broker if the lender is ok with different classifications of suite.
How many types of suites are there?
Legal Suite
A legal suite is a suite approved by the city and meets secondary suite and building permit requirements.
Unauthorized Suite
An unauthorized suite is one that does not meet all of the requirements of a legal suite. These may include but are not limited to: fire separators, smoke alarms, door heights, laundry, suite entrances, and more.
An unauthorized suite will have all the basics a legal suite would have, such as a bedroom, bathroom, and kitchen separate to the rest of the house.
Can I still rent out my suite if it is unauthorized?
In Grater Vancouver, the reality is that in some areas 80% of the suites are unauthorized. This means that a majority of them do not comply with all the rules and permits. However, they continue to be rented with little to no issues.
The Residential Tenancy Act (RTA) applies to secondary suites, whether that be ‘legal’ or ‘unauthorized’. A secondary suite could be a basement suite, laneway house, or other unit that is on the same property as a residential house. Even if the suite is illegal (not registered with the city, or in a city that does not allow secondary suites) both the landlord and tenant must comply with the RTA.
Benefits of legalizing your suite
Ensuring the safety and well-being of occupants is paramount when considering legalizing your suite. By adhering to various safety standards and city regulations, you not only prioritize the safety of those residing within but also contribute to a safer community environment.
Legalizing your suite also proves invaluable in terms of insurance coverage. With proper legalization, you can secure the necessary insurance to safeguard against emergencies or unforeseen disasters, whether caused by tenants or family members, offering peace of mind during challenging times.
Moreover, a legalized suite helps mitigate complaints and minimizes disruption to the neighborhood. By meeting specific requirements such as providing ample parking, you can ensure minimal impact on the community, fostering harmonious relationships with neighbors and tenants alike.
Furthermore, the process of legalizing a suite can significantly enhance the value of your property. With inspections and compliance with regulations, your suite becomes an asset, potentially generating additional income while maintaining the overall value of your home.
Last but not least, legalizing your suite helps you avoid costly penalties. Non-compliance with regulations could lead to fines and additional fees imposed by the city, such as increased water and sewage charges. By legalizing your suite, you mitigate these risks, ensuring a smoother and more financially sound property investment journey.
Does adding a secondary suite add value to my home?
YES! Buyers do not need to deal with risks of unauthorized suites. When selling your home, buyers also look for authorized suites as it is easier to qualify for a mortgage with a ‘mortgage helper’.
Creating a New Secondary Legal Suite
Secondary suites are subject to a number of provincial, territorial or municipal requirements, including:
- zoning;
- building code;
- unit size and location
- parking spot for tenant
- inspections and licensing.
- Electrical and Plumbing codes will have to be up to date
- If the suite is located in the basement, it will have to comply with height and natural light standards.
- Must have a separate entrance
- Must meet fire safety standards
If you’re looking to purchase or sell a home with a secondary suite, work with an agent that knows about the differences between the two. There are a number of legal questions, clauses, and terms that need to be answered and also added in to a contract when dealing with a secondary suite, which is why you need an experienced agent.
Call me at 778.686.8344 email ivana@livingtricities.com to start a conversation.