How To Convert My Personal Property Into An Income Property


Do you have more house than you need? Looking to turn that extra space into a cash flowing income property? Adding a secondary suite to your home can bring value to your home and go a long way to helping you live your life on your terms. 

Converting your home into an income property can be a great move. Sometimes the income property market is limited and the best place to invest is your own home. It can increase cash flow in the short term, and also increase the properties appreciation in the future. Before you go ahead and convert your property, check out how changing the use of your home could effect your taxes


What are Secondary Suites?

A secondary suite is a private, self-contained unit within an existing dwelling. They are also referred to as second units, accessory apartments, in-law suites, or basement apartments. A secondary suite has its own bathroom, kitchen, living room, and typically has 1 to 2 bathrooms. They can share a number of features with the rest of the house, which can include a yard, parking area/driveway, and laundry.

 

Step 1: Plan Your Project

There are many things you need to consider when looking at converting your personal property into an income property. As with any investment property, you have to look if your home is going to be a good fit for a rental suite. What amenities are near by? What kind of cash flow can you expect from the proposed unit?

Who are you looking to rent to? If it’s students, is the school/bus route near by? Will you be able to get the unit ready in time for the upcoming school year?

Here are a few things to keep in mind when you’re looking to add a secondary unit to your property:

 

  • A secondary suite needs to meet residential zoning requirements within the town/city where your house is location.

  • Your property needs to conform to property standards bylaws, occupancy standards, health and safety requirements, and fire and electrical codes.


Each city has their own set of requirements so it is important to be familiar with these before you even start. The first thing you want to investigate when you’re considering adding a second unit to your house is to make sure you are properly zoned, approved, and have the proper construction permits. You can’t add a secondary unit to every property so make sure your home meets the criteria.

If your house is approved for a secondary unit, hiring a reputable contractor to help with the design and construction in accordance to the City’s guidelines is a good course of action for most investors.

 

Step 2: Submit your application for a permit

Once your project design is complete you will submit a drawing along with the necessary application paperwork to the City.

 

Step 3: Approval Process

At this stage a site examiner reviews the drawings for any deficiencies and determines whether more info is necessary.

 

Step 4: Permit Issued

Construction can’t begin until a permit has been issued making this a critical step.  Getting the permit issued gives you the green light to go ahead with the work. This is when you get the satisfaction of seeing real progress being made.

 

Step 5: Inspections

Your job isn’t done at the end of construction. You will need an inspection first. Once your inspection is passed the permit will be considered complete.  Once you’ve passed inspections you have yourself a legal secondary unit in your house. Congratulations, now it’s time to market and fill your brand new suite.

 

Some Cool Free Stuff...

Grab a free digital copy of our real estate investing book, Income For Life For Canadians, right here. This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

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Free Weekly Investing Videos & Articles: Get the latest updates and join the over 10,000 other Canadians enjoying the weekly [Your Life. Your Terms.] email newsletter. The email is sent out each Thursday. And as a little bonus we'll give a FREE digital copy of the book, Income For Life For Canadians, too!

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  Some Cool Free Stuff...

  Step 1:

Grab a free digital copy of our real estate investing book, Income  For Life For Canadians, right here. This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

You'll also receive our weekly [Your Life. Your Terms.] email newsletter with the latest investing updates and videos.


  Step 2:

Free Weekly Investing Videos & Articles: Get the latest updates and join the over 10,000 other Canadians enjoying the weekly [Your Life. Your Terms.] email newsletter. The email is sent out each Thursday. And as a little bonus we'll give a FREE digital copy of the book, Income For Life For Canadians, too!

Your Life. Your Terms.



  Step 3:

Free LIVE Investing Class: Do you live in the Greater Toronto or Golden Horseshoe Area? Come out to our next introductory "Investing in Nice Homes in Nice Areas" Real Estate Class.

Get all the details by clicking here.

It's 90-minutes and you'll learn a ton - promise!Thousands of investors have now joined us for this class and the feedback has always been amazing.



This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.