If you ever thought about what it takes to legalize a basement apartment, then you’re on the right track. You can go from having a potential fire hazard to a legitimate money-making rental suite. Plus, legalizing your basement apartment does not have to be a complicated mess.
As building permit experts, we bring you every critical detail on making a basement apartment legal in Ontario. This article also details what it takes to legalize a basement apartment. You’ll learn what dictates whether a property meets the legal basement requirements according to zoning bylaws and the Ontario building code.
Potential legal pitfalls: Why should you legalize your basement apartment?
Illegal basement suites are dangerous. Generally, the basement suite design for an illegal unit does not consider the Ontario Building code. So, it likely has no fire separations, carbon monoxide detectors, or smoke alarms. There’s usually an overload of existing plumbing and electrical utilities, a lack of parking and often the indoor comfort is not adequate.
And beyond the dangerous and unsafe conditions for tenants, what about the legal implications to you? First, anyone can notify the municipality based on a suspension that your basement apartment be inspected because it is illegal. The worst case is if there is a first responder event at your property and someone hurt or neighboring property gets damaged, steep penalties, fees, and even jail time may apply. illegal suites are a liability!
- It threatens the application for a claim against an insurance policy
- It opens the door for professional tenants to drag you through the tenant board process
- It reduces the value of the upgrade to the property when compared to legal apartments
- It can affect your ability to get financing if the bank cannot prove the unit’s legal status
. Beyond these risks, the rewards of legalizing that second apartment are worth the time and money. This is why you should pay attention to what makes your basement apartment legal.
Legalizing Requirement For Existing Basement Apartments
Whether you know it or not, you can purchase an illegal secondary suite under the guise of legal non-conforming property. I have news for you this happens frequently and while it can be intentional, it is not uncommon that the previous owner or sales representative doesn’t know the status of the basement apartment.
What is a legal non-conforming property?
It simply means a property that has an established use that conforms to a previous bylaw but is allowed to maintain its use despite the implementation of a new bylaw that doesn’t allow that same use. If the property is deemed to be legal non-conforming, then you can move to the next step.
Is the property operated as a secondary unit?
July 14, 1994, was a pivotal year for secondary suites. If the property was used as a two-unit dwelling before July 14, 1994, then the legalization process requires fewer steps. These properties must only comply with the Ontario Fire Code, provided that there will be no changes to the unit. Once changes are made to the existing unit layout of plumbing fixture locations, a building permit will be required. However, if no changes are proposed to the existing dwelling units, then only the Ontario Fire Code applies.
November 16, 1995, is an important date as it divides secondary dwelling units into yet another category, those that are “grandfathers” and those that are not. Grandfather provisions waive the property from having to comply with current zoning requirements. Since then, most, if not all municipalities have amended their zoning bylaw and what happens is that the use and provision of the old bylaws will continue to govern the property standards that will not require compliance with the zoning bylaw. On the other hand, if the property was not operated as a two-unit dwelling before this year (choice a month), then a full building permit application would be required.
November 17, 1995, in essence, is the cut-off date when all relaxation on bylaws and building codes were essentially removed. In some municipalities, if it can be proven that the secondary unit not only existed but was operated continuously as such up to November 28, 2018, the owner may be allowed to waive the requirements. This is because, between 1995 and 2018, two-unit dwellings were not allowed to be created as of right.
Providing Proof For Existing Basement Apartment
It should come as no surprise that the building department and fire department officials will require proof of basement apartment status. So, if as a purchaser you are buying a legal non-conforming property you also request this documentation in advance or as a condition. Because, with this documentation to verify the status, your review process will be nonexistent. As a professional designer, I must mention that though some properties may successfully meet the grandfather and minimum review requirements, it is always prudent that you seek advice on design options.
Here are documents that will get you the nod from the building officials:
- Utility Billings (gas/hydro/phone/cable)
- Owner(s) Affidavit
- Assessment Records
- Third Party Affidavit (tenant, neighbor)
- Building Permit
- Town Records (fire/property standard)
- Bank Mortgage / Loan Records
- Rent Cheques / Receipts / Lease Agreements
- House Insurance Records
A combination of these documents can be requested, so be ready. Provided you can supply them, then you’ll be given the green light to begin the Ontario Fire Code Review process. Let’s talk about that a bit so you understand what is needed.
Required Inspections For Existing Basement Apartment
Now the verification process is completed and all the necessary documentation has been supplied to the fire department, the inspections can be scheduled. Let me say that these inspections, if successful, will save about 90% of the time and money so be prepared.
First of all the building must be in good repair. If it is not deemed safe to enter, it will defeat the purpose of scheduling the fire inspection as the fire official will not enter the building. An immediate notice will be sent to the building department which will issue an order to comply. It goes without saying;
- get a design professional to walk the property in advance and document all things that are not compliant with the Ontario Building Code.
- engage the services of a knowledgeable home inspector. They will identify all the building elements and equipment that are approaching or have exceeded their life expectancy.
- conduct walkthroughs with contracts in an attempt to solicit quotes for work they identify.
Complete any work-related fire code infraction in advance of the fire inspector’s visit to the property. Also, repair any building system that may be visible and would under normal circumstances raise suspicion and bring the building’s condition into question. And at the very least have a quote and a schedule to show that the work will be completed promptly. In which case a re-inspection should be scheduled.
Here is a list of the inspections required and the reason for them to be completed:
- The Fire Safety Inspection: Ensures that the building has the necessary means to alert and allow the occupants of the space to exit in an emergency. Also, the property must be able to be accessed by firefighters in the event of a fire.
- Electrical Safety Authority Inspection: Ensures that the electrical service to the property is sufficient to meet the demands of the occupants. Also, attention to knob & tube, and aluminum wiring will be noted
- Property Standard Inspection: The general structural integrity of the building is the focus. Does the building appear to be settling or is exterior cladding missing and so forth?
- Building Inspections: If any of the inspections fail, this building department will have jurisdiction to issue an order to comply. This means all the work done so far was for nothing. A building permit will be required and the property will be reviewed for zoning bylaw and building code compliance.
Registration of an Existing Basement Apartment
Once the required fire, electrical, standards and building inspections are all passed on the existing two-unit dwelling, it can then be registered with the city. Most municipalities around Ontario have already launched the registry for additional residential units. This serves the purpose of
- count the number of converted dwelling units being added within the city housing / rental stock.
- Work as a tool for renters to identify the units that are legal and safe versus those that are not.
- Determine if a unit is legal or not and whether a complaint should be taken seriously.
In summary
Legalizing your existing basement apartment can make all the difference in turning your investment into a viable opportunity. Before purchasing a property, it’s crucial to determine the legal status of any basement apartments. To learn more about determining the legal requirements for a basement apartment in the Ontario Building Code, click here.
