Want to Rent basement .......

[dealbarons]

We are at Mississauga Ontario,we are planning to rent our basement .It has one large size bedroom and pretty decent size family room and full size washroom.we have built a kitchen and moved the laundry into the furnace room ,Can someone let us know what will be the consequences /fines etc etc if by any chance like neighbours complaint etc the city finds this ....we badly need to rent can some one advice please ..
Thx

[dakrwurm]

You probably can get fined thousands of dollars from the city, and if the province gets involved(because you dont follow Ontario fire ) and someone gets hurt you can be fined tens of thousands.

And don't forget the insurance company. They could possibly deny you coverage if it came out you had an illegal suite.

But I'm no expert, but some quick googling led me to that conclusion.

[-=phelan=-]

not to mention it'd be hard to get the tenant out of the basement as well cuz if you're doing under table i'm not sure if eviction notice works or not. And even if you did want them out, what's to say they don't blare the music all night to keep you and your neighbours up and next thing you know the neighbours call the cops and "investigate" the disturbance

[Billa-786]

Hopefully someone with more knowledge of this whole topic can answer.

At first I too was interested in finishing my basement and renting it out seeing the many people in Peel who do this.

However after doing some research I figured the risk is too much for me to take on.

My understanding is that in Ontario :

1. You can't have a kitchen.
2. You can only have bedrooms if they have windows large enough to be fire safe.
3. You can't rent out your basement legally???(not entirely sure on this one)

[synaptech]

I briefly considered this too, but then considered that the income would be taxable (not sure at what rate) it didn't seem as great an idea -- especially with the risks (moreso with someone in your own home)

[Whitedart]

We are at Mississauga Ontario,we are planning to rent our basement .It has one large size bedroom and pretty decent size family room and full size washroom.we have built a kitchen and moved the laundry into the furnace room ,Can someone let us know what will be the consequences /fines etc etc if by any chance like neighbours complaint etc the city finds this ....we badly need to rent can some one advice please ..
Thx

Renting out the basement without having it legalized violates the City's Zoning by-law and is an offence under the Ontario Planning Act, so the maximum fine is $10,000 per day, per individual that owns the property, on a first offence.

If you added a basement entrance, enlarged windows, or made any other structural changes, you also look at charges under the Ontario Building Code.

Any reported basement units are also reported to Revenue Canada for follow up regarding rental income. Some report the income, but most do not.

not to mention it'd be hard to get the tenant out of the basement as well cuz if you're doing under table i'm not sure if eviction notice works or not. And even if you did want them out, what's to say they don't blare the music all night to keep you and your neighbours up and next thing you know the neighbours call the cops and "investigate" the disturbance

Tenants in Ontario have the same rights within a regular apartment or a basement apartment. Many tenants report illegal basements because they are not safe (inadequate window sizes, improper exits, no fire protection) or issues with the landlord over noise, parking, snow removal, garbage, etc).

Hopefully someone with more knowledge of this whole topic can answer.

At first I too was interested in finishing my basement and renting it out seeing the many people in Peel who do this.

However after doing some research I figured the risk is too much for me to take on.

My understanding is that in Ontario :

1. You can't have a kitchen.
2. You can only have bedrooms if they have windows large enough to be fire safe.
3. You can't rent out your basement legally???(not entirely sure on this one)

Some basement units can be approved (with proper Building Code or Fire Code retrofit), but they must have been in place since 1995. You can not take a newer home (built since 1995) and just add a basement unit because you want to or need the income.

Plus there is the issue of non disclosure to home insurance companies. Where people rent out the basement without proper retrofit, and proper disclosure, I have seen cases where the insurance refuses to pay for fire damage after it occurs. In a few cases the house could not be lived in as the fire started in the basement and burned through to the main floor, putting two families out on the street, with no insurance coverage. One house in particular near Mavis and 401 has been vacant for 2 years now as the owner can not afford to cover the repair costs himself.

Drive through Mississauga or Brampton, and it is not too difficult to tell where basement rentals are popular on a given street.

[tjthemanto]

From the Mississauga City Website .

Can I have a new basement apartment in my house?

Answer
No, a new basement apartment (or second dewelling unit) is not permitted. An application to legalize an existing basement apartment can be made in some instances. Please contact By-Law Enforcement at 905-896-5655 for further information.

Requirements for an Existing Apartment in a House
(Second Dwelling Unit)

http://www.mississauga.ca/file/COM/requirements_appartments.pdf



Issues you will face if the basement apt. is illegal:

1. By-Law violation
2. Fire Code Violation
3. Home Insurance will not pay for damage caused by tenants.
4. Revenue Canada will be on your ass if you don't declare the income.
5. Evicting a tenant in Ontario is a nightmare .

[Bullseye]

Baement apartments in Ontario are generally only legal if they were built during the short time period in the 90's when they were allowed. This hasn't stopped a proliferation of basement suites, of course, and cities certainly know that there are many out there. They just turn a blind eye unless there are complaints.

We rented our basement out for a few years back 5 years ago, but were always nervous about it. We did inform our insurer, and they were fine with it, we were still covered.

In my opinion, it's not worth the risks and hassles to do it. Unless you have a low net worth, meaning no real assets to worry about if something catastrophic happens. That was our situation back when we did it, we were first time home buyers with little to lose. It did help up get ahead, but we were happy when we stopped, even though we had no issues and had great tenants.

[lenamir]

Basement Appartments can be legal on Ontario within R1 and R2 zoning

http://www.carsondunlop.com/pdf/Basement-retrofit.pdf

[Angela V]

My parents have a basement apartment in their house in London. Recently it was checked out and my dad had to fix up a lot of things to make sure it'd pass. He had a several bad tenants and the place was a mess. It does look nice now and they seem to have a decent tenant for once but that's the first nice tenant he's had. My parents have had this house for 9 years.

[Whitedart]

Basement Appartments can be legal on Ontario within R1 and R2 zoning

Perhaps in Toronto but not Ontario. Every municipality sets their own rules for this, with their respective Zoning by-laws under the Planning Act.


http://www.carsondunlop.com/pdf/Basement-retrofit.pdf

Read the info in the link you posted. To be more precise about legalizing units, that article provides some history on this. With the last paragraph, many cities including Mississauga, have not allowed the creation of new units:

Basement Apartments – The History

Prior to 1993, there was little to worry about. After 1993, a permit was required to change a
home from single family to multi?family.

In 1994, the NDP government in Ontario said that we could ignore local bylaws that prohibited
second dwelling units in houses if certain conditions were met.

In 1994, the province set new Fire Code rules for basement apartments. A deadline was
established for all existing basement apartments to upgrade to the new fire code. Upgrading to
comply with the new fire code is called a “retrofit”. The owners were allowed
to apply for an extension for up to two years past the deadline if they had financial or logistical obstacles. Even
with the extension, the deadlines have long since passed.

In 1995, the provincial Conservative government told municipalities that they could enforce
their bylaws regarding basement apartments. A grand?fathering clause says that apartments
existing before November 1995 do not have to meet local bylaws.