I recently logged onto CREA and read the top most searched words on realtor.ca, they are: Income suite, basement apartment, additional kitchen, separate entrance… and the list goes on.

There are multiple factors at are responsible for the rise of the basement apartment, ranging from changing mortgage regulations, to rising home prices, but buyers should be cautious when renting out their basement apartment or income suite.

In a red-hot market like we have today, a secondary suite to subsidize a burdening mortgage is a huge incentive when purchasing a home. However, buying a home with a secondary suite is a Buyer Beware situation. Most listings that feature a basement apartment, or income suite, also feature a disclosure stating: The Seller and the Seller’s Agent do not warrant the retrofit status of the basement apartment.

In 2012, changes to the Planning Act required all municipalities to implement zoning bylaws on all secondary suites, basement apartments, and accessory structures (Ie. Garages). The zoning bylaw affects all residential properties, whether they are detached, semi-detached, or townhouses.

Properties with secondary suites that were built prior to 1995 are exempt from the bylaw changes, however, I caution you that because of the mass array of changes and the patchwork nature of the bylaws, if the property was extensively renovated after 1995 the secondary suite may not be exempted from new rules and regulations.

In some communities, basement apartments are completely illegal, and in others they might as well be illegal because the approval process is very complicated.

In all municipalities, the secondary apartment must meet bylaws, maximum occupancy, fire and electrical codes, and health and safety codes, which is why sellers regularly advertise that they do not warrant the retrofit status of the basement apartment, or income suite.