What if your basement could make you serious money? Here’s how to make it fully compliant with the law.

Converting a Basement into a Rental Apartment: What You Need to Know

Turning a basement into a rental unit can be an excellent way to generate income and increase a property’s value — but it requires strict compliance with building codes, municipal bylaws, and safety standards.

1. Regulatory Compliance

Each Canadian province has its own building and fire codes, along with additional municipal regulations. The main requirements typically include:

• Minimum floor area and ceiling height

• Size and number of windows

• Plumbing, heating, and ventilation systems

• A complete kitchen and bathroom

• Fire-resistant insulation, smoke and CO detectors

• Electrical safety and accessible exits

The apartment must have at least two exits, one of which can be a window that is easily accessible in case of emergency.

2. Risks of a Non-Compliant Unit

An unregistered or non-compliant apartment can lead to hefty fines and may endanger the safety of tenants. Renters have the legal right to request proof of compliance from the property owner.

3. Conversion Costs

The total cost depends on the current condition of the basement.
A finished basement that already has plumbing and large windows will cost less to convert than an unfinished space.
Expenses usually include installing a bathroom, kitchen, private entrance, and bringing everything up to code.

4. Added Value

Converting a basement into a rental suite can yield an average return on investment of about 75 % upon resale.
For instance, a $50,000 renovation could add roughly $37,500 to the home’s market value.

5. Steps to Follow

Before starting the project:

• Request multiple quotes and hire a qualified contractor

• Review municipal bylaws and obtain all necessary permits

• Plan your financing, for example through a mortgage broker such as Multi-Prêts Équipe Caron

In Summary

Transforming a basement into a rental apartment is a profitable and increasingly popular project, but it must be carried out properly — with professional guidance and full compliance with local regulations.

If you found this article on real estate informative and would like more information, do not hesitate to contact Emmanuel Paquin, your residential and commercial real estate broker. Emmanuel serves the Montreal and Kirkland regions and is affiliated with the company RE/MAX ROYAL (JORDAN) INC.. You can reach him by phone at (514) 757-6268 or visit his website at the following address: https://emmanuelpaquin.com/.

For those specifically targeting the Montreal residential market, Françoise Cardyn is also available to answer your questions. As a residential real estate broker at RE/MAX ROYAL (JORDAN) INC., she can be contacted at (514) 557-4523. For more information or to send an email, visit https://emmanuelpaquin.com/.

With the Emmanuel Paquin Team, you benefit from the expertise of a strong and experienced team in real estate in Montreal. For any questions, contact us at (514) 757-6268 or by email at info@emmanuelpaquin.com.

We hope this article has been helpful to you and we invite you to contact our brokers for any real estate questions or needs in Montreal and Kirkland.