Would You Buy a Home with Strangers? These Canadian Companies Are Betting On It + MORE Oct 2nd

If you’re buying a property right now, chances are you’ve come across more than a few homes that advertise income potential—thanks to a secondary suite or basement apartment. 

Beyond the practical reasons for wanting a secondary suite, such as having a senior-age parent move in, two-unit homes usually represent a valuable source of rental income for the owner. But becoming a landlord is a significant responsibility, and you could find yourself on the hook—both financially and legally—if you fail to abide by the rules. 

So, how can you find out if a home’s secondary suite or basement apartment is legal before you buy? Or, if you see potential for a second unit, what would it take to build one yourself? We break it all down here. 

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Lesli Gaynor was tired of renting a home for herself and her two-year-old son. The Toronto resident wanted more space and a more stable living environment, where a landlord couldn’t kick her out. So, in the early 1990s she got together with two friends and bought a house in the city’s Parkdale neighbourhood, taking advantage of a place that was already split into three separate units. They shared the home’s backyard and mortgage. The group disbanded when Gaynor decided she and her son had outgrown the space and were ready to move on. Each co-owner used the equity from selling the property to buy their next homes. 

The experience had such a profound impact on Gaynor’s life; she says that getting into the market as an owner wouldn’t have been possible otherwise. It also sparked a new career idea: helping other people buy property as a group. “People want to co-live or co-purchase most often because of an affordability problem,” says Gaynor. “Then, as a result, they get a whole lot of other things that go along with home ownership, like a greater quality of life…