Looking for an excellent way to generate some more income? Have you considered converting a part of your home into a secondary suite? Not only can the monthly rental income be used to pay back the renovation, but in the future it can go toward mortgage payments, education, retirement, or just add a financial cushion to your life. Our Toronto property management pros look at some things to consider when creating an income suite for your home.
First, you’ll need to find a space that can be converted into a rental suite. Your basement and attic are the traditional places for an income suite, if they have sufficient height, light, and space. You may also want to consider dividing off a section of your home, like the top floor or garage, and transform that space into its own rental area. Basements are the most common choice because they offer the most square footage and privacy.
A secondary suite must have its own living space, sleeping space, bathroom, and kitchen that is separate from the primary living space. Facilities such as laundry, storage, parking, and yard space can be shared.
Before you draft up the plans, make sure to check the local By-laws to ensure your space will abide by all the permits and zoning rules and regulations. Laws can outline how high the ceiling needs to be, the amount of space per person, if you need a fire or sound barrier, and how many units you are allowed to have in your home. For instance in the city of Toronto, you cannot add a secondary suite unless the home is more than five years old, and secondary suites have a minimum square footage of 55 sq.m. in most of the city.
When installing features, you’ll want to pick fixtures that will be durable, functional, and will last for years to come. You don’t want to spend money only to have to reinvest again after your first tenant, so make sure you pick quality features. But don’t go spending money on high-end features and designs that will have a minimum impact on increasing the rental value.
To attract renters, you’ll need to have a few features that really stand out, especially if you want superior tenants. What are some attractive features that won’t break the bank? Think a stylish tile shower surround, a built-in closet organizer, or stainless steel appliances – the little perks you can’t always find in apartments. Plus, if you have an available deck or patio, you can easily transform this space into a great lounge area with lights, plants, and décor.
One of the most important parts of owning a rental suite is to understand the market. Knowing what price to list your property at, and how much you can increase your rent each year is very important. You may want to reach out to a professional for guidance to ensure you will make the most profit from your rental.
Renting out a part of your home can be easier than you think. Plus, it can help make lots of extra income and improve your financial status. If you want to get into the rental game, Medallion Capital Group can help. From planning the renovation to determining market price to tenant screening, we do it all.