When you’re house-hunting, sometimes the opportunity to have the opportunity to have a mortgage helper — i.e., a rental suite — can make a home more appealing. That’s understandable, but it also requires caution on the part of the prospective buyer — you.
The first thing you’ll want to know is if it’s a legal suite. One insurance-company survey determined that 15 per cent of all rental suites in detached homes in B.C. are not legal, a figure that’s consistent with the national average.
The first thing you’ll want to know is if it’s a legal suite. One insurance-company survey determined that 15 per cent of all rental suites in detached homes in B.C. are not legal, a figure that’s consistent with the national average.Secondly, it’s vital to check with the municipality or city to make sure that having a rental suite is legal — despite the pleas for more affordable housing, there could be out-dated municipal laws that prohibit rental suites.
Thirdly, it’s important to make sure a rental suite is up to municipal codes, and whether having a business license is required.
If you don’t check in advance of purchasing a home with a rental suite, you could be denied that income-generating opportunity or, at least, be stuck with the cost of upgrading to meet municipal standards.
- Photo Alex Block, Unsplash