With More People Renting Out Basement Apartments Smart Newmarket Landlords Are Leading The Way In Creating Safe, Legal Units To Make Renters Feel At Ease
There was an excellent article in the Toronto Star recently regarding legal basement apartments. In the story a person looking to buy a house wanted to find one with a basement apartment.
After viewing lots of single family homes and semis with basement rentals they were feeling confused. Realtors and the MLS listings were not providing the information they wanted. So the potential buyer asked The Star “how to make sure the basement apartment in a house is actually legal.”
Why Are Basement Apartments So Popular These Days?
Property prices continue to increase in many parts of Ontario. In Toronto The rise in prices for detached homes, semis and condos was dramatic in 2016. And Toronto and GTA real estate is going to continue to grow fast in 2017.
More and more homeowners are looking at having a basement rental apartment in their houses these days.
1. Using The Rental Income To Help Qualify For Your Mortgage
With some recent changes to how one can get a mortgage having extra income from a basement suite can be very helpful to get qualified.
2. Monthly Cash Flow To Help Cover The Mortgage
Once you purchase the property and get the mortgage, now you have to pay for it each month. Having a tenant renting out your basement can bring in needed dollars to help you cover your monthly payments.
3. Monthly Cash Flow To Take A Chunk Out Of Your Mortgage Each Year
Many new owners have enough income themselves to cover their mortgage. So any extra income from a basement rental apartment can be saved up.
When it’s saved it can be used to help pay down your mortgage every year. Imagine the financial freedom you will have once you are “mortgage free!”
How Can I Make Sure The Basement Apartment In A Home I Might Buy Is Really Legal?
This is the question asked in the Toronto Star story we mentioned earlier. It’s a terrific and important question that all new buyers / potential landlords should be asking!
You want a great tenant for your property and that’s why you always run a landlord credit check. But what about your future tenants? They want a great landlord…and they want a safe rental home.
Right off the bat you need to make sure the rental apartment meets all the codes and by-laws in the area. After all, if you rent out an illegal basement apartment you could face steep fines or even time in jail (yes, true!)
You also are also totally open to liability in case there is a tragedy such as a fire.
Oh My God There’s a Fire In My Rental?
If there ever was a fire and your basement rental unit was “non-compliant” do you think your insurance company would cover you?
Even if you were lucky enough to have no one injured you will probably be on the hook for thousands of dollars in damages your tenants encountered. And you would be responsible for the house damages. And hope that a bunch of law-suites don’t come your way!
Newmarket Rental Properties
Unfortunately in Toronto it can be very expensive to create a legal basement apartment in your home. Toronto Star Columnist Bob Aaron wrote about this in an column where he believe the high fees in Toronto are crushing legal basement apartments.
Newmarket Has An Efficient System To Make Your Basement Rentals Safe and Legal
So why not invest in a place that has an efficient and low cost way to make your basement safe and legal?
Experienced and successful landlords make sure their rental properties are safe, legal and registered and no tenants should risk their well-being (and pay their hard earned rent) living in a rental unit that is not up to code by the landlord.
Newmarket is a place with a clear system of what is a “legal” rental property and what is not. If you pass all the inspections you get an “N” plate that shows everyone you are safe and legal.Newmarket landlords with an “N” plate are safe and tenants know it’s a property (and a landlord) they can trust for safety.
Tenants can even check the Newmarket ADU list to make sure the landlord is telling the truth and the Newmarket basement apartment is on the Newmarket rental apartment legal list.
Safe, Legal Rental Properties and Your Success As an Ontario Landlord (and your protection!)
Smart and successful landlords know the importance of protecting your investment. They also make protecting the safety of their tenants a priority.
In Newmarket, Ontario there is a way to make your basement apartment legal and registered. Most other cities and towns don’t have this type of effective system yet.
However, you can still work with your bylaw office and your fire department to make sure your rental property is safe no matter where you are.