Adding a secondary suite in Calgary may be a convenient choice that can provide financial benefits for landlords without the hassle of looking for a rental property to buy, but it also comes with costs, legal requirements, and potential challenges.
If you want to become a landlord or are considering adding a second rental property to your portfolio, keep reading to learn the pros and cons of adding a secondary suite in Calgary.
The Pros and Cons of Having a Secondary Suite in Calgary
Pros
- Potential Extra Income: One of the main perks of adding a secondary suite is the potential for rental income. You can generate extra revenue by renting out the suite, which can help offset your mortgage or other expenses.
- Increased Property Value: A well-designed and adequately permitted secondary suite can increase the overall value of your property. This can be advantageous if you plan to sell your home in the future.
- Support for Seniors: The potential revenue for renting a secondary suite can be helpful for seniors who may no longer count on enough income or savings to stay in their homes. The suite can also be used as a residence for a live-in caregiver or a family member.
- Flexibility: Having a secondary suite provides flexibility for homeowners. When you are not renting it, you can use it for family members, guests or as a home office or gym.
- Helping With Housing Shortage: It’s no secret that housing supply is an ongoing issue in Canada, especially in the main cities. Secondary suites are often a desired option for those who can’t afford or can’t find housing accommodation that suits their needs.
Cons
- Costs: Building a secondary suite can require a significant budget, including construction, permits, and upgrades to meet safety and building code requirements. Homeowners considering adding a secondary suite must be aware that the initial investment may take time to recoup through rental income.
- Zoning and Permits: Calgary has specific zoning regulations and permitting requirements for secondary suites. Failing to meet these requirements can result in fines or legal issues.
- Privacy Concerns: Sharing your property with renters can affect your privacy and may lead to disputes or conflicts with tenants.
- Neighbourhood Concerns: Some neighbours may have concerns about secondary suites, such as increased traffic or parking issues. These concerns can lead to neighbourhood opposition or disputes.
- Maintenance: Owning and maintaining a secondary suite is time-consuming and requires additional effort and resources.
Increase Your Secondary Suite’s Potential
Adding a secondary suite in Calgary can be a convenient way to start your journey as a landlord or expand your investment portfolio. Before proceeding, it’s crucial to research and plan carefully, ensure compliance with local regulations, and evaluate whether the advantages outweigh the drawbacks for your specific situation.
Rental secondary suites can be as demanding as other types of rental. That’s why having a property manager handle tasks like finding and screening tenants, supervising repairs, and collecting rent is an excellent choice to help you maximise your investment. Get in touch with us to get a free quote.
