A rental suite—also known as a secondary unit, accessory apartment, or in-law suite—is a self-contained living space within a home that is rented out to tenants. In Ontario, rental suites are becoming increasingly popular as homeowners look for ways to generate extra income or accommodate extended family members. However, not all rental suites are considered legal or compliant with municipal and provincial regulations.
If you’re thinking about adding a rental suite to your home, it’s essential to understand what qualifies as a legal unit, what rules apply, and how it may impact your mortgage options.
What Defines a Rental Suite in Ontario?
A rental suite is typically a separate living space within a primary residence that includes:
✅ A private entrance (separate from the main dwelling)
✅ A kitchen or kitchenette with cooking facilities
✅ A bathroom with a toilet, sink, and shower/bathtub
✅ A sleeping area (which may be a bedroom or open-concept space)
These suites are commonly found in basements, but they can also be built as coach houses, laneway homes, or converted spaces within a house.
Legal vs. Illegal Rental Suites
Not all rental suites in Ontario are considered legal. Municipalities have zoning bylaws and building codes that determine whether a secondary unit meets the requirements for rental. Here are the key factors that define a legal rental suite:
1. Zoning and Permits
Each municipality in Ontario has its own zoning rules for rental suites. Some areas allow secondary suites as of right, meaning they don’t require special approval, while others may have restrictions. Before creating a rental suite, homeowners must check with their local zoning department to ensure their property is eligible.
2. Building Code Compliance
Rental suites must meet the Ontario Building Code (OBC), which sets safety and structural requirements. This includes:
✔️ Minimum ceiling height (usually 6 feet 5 inches or higher)
✔️ Proper ventilation and insulation
✔️ Safe electrical and plumbing systems
If a suite was built without a permit or fails to meet these requirements, it is considered illegal and could result in fines or eviction of tenants.
3. Fire and Safety Regulations
Fire safety is a critical factor for legal rental suites. Units must comply with the Ontario Fire Code, which includes:
🔥 Fire-rated walls and doors to prevent the spread of fire
🔥 Smoke and carbon monoxide detectors in key areas
🔥 Proper exits (egress windows or secondary escape routes)
A suite that does not meet fire safety regulations is not considered legal and could be shut down.
Benefits of a Legal Rental Suite
Having a legal rental suite comes with several advantages, including:
✔️ Extra Income – Helps cover mortgage payments and household expenses
✔️ Increased Property Value – Homes with legal rental units are attractive to buyers
✔️ Easier Financing – Some lenders allow rental income to count toward mortgage qualification
Final Thoughts
If you’re considering adding a rental suite in Ontario, ensure it meets zoning, building, and fire code regulations to avoid potential issues. A legal suite provides financial benefits while offering peace of mind for both homeowners and tenants.
Thinking about buying a home with a rental suite or converting part of your house? Let’s discuss your mortgage options today! 🚪💰🏡