Why not put a rental apartment in your Etobicoke, Downtown Toronto, Central Toronto, North Toronto house?
Many homeowners have wondered if they should convert part of their home into a rental unit.
It goes without saying the objective is to cut down your monthly payments by getting rent every month. This can give you a healthy amount of extra income, or sometimes even make it feasible to make regular monthly payments which you otherwise might not be able to do.
Your first step should be to check with your municipal government to determine if creating a rental unit of the type you are considering can be approved according to the current bylaws. Each municipality is different.
Local fire regulations are usually the most difficult hurdle. Fire codes lay down rules for electrical wiring, and the type of materials used in construction. They also define entrance and exit requirements and also determine the placement of smoke alarms.
In order to be sure your design is correct you are advised to get advice from a professional contractor who understands the requirements. Of course doing it properly will probably be costly. For example, just building a new entry door could cost up to $10,000, and building an apartment having a separate kitchen and bathroom could cost somewhere in the range of $30,000.
If the project is done according to code the renovation should bump up the resale value of your Etobicoke, Downtown Toronto, Central Toronto, North Toronto home by at least 50% of its initial cost. Rental income should be substantial if you remain in the house for a few years.
Say you spend $20,000 building an apartment which you can rent out for $700 per month. Over a 10 year period your rental income will be more than $80,000. There will be expenses involved in maintaining a rental unit, and there is the hassle of dedicating part of your home to a renter. But if you proceed prudently and keep a careful check on your expenses you should come out well ahead after no more than three or four years.
More Resources: Bankrate.ca - Adding a rental unit to your home home improvement, add rental unit, add apartment