The Benefits of Building a Secondary Suite
A secondary suite is defined as a separate residence inside a single detached home that has it’s own sleeping, bathroom and kitchen facilities. Most secondary suites are basement suites, but more homeowners are building garden suites or a suite built in or attached to the garage. There are many benefits to secondary suites for home owners and tenants.
Benefits of Secondary Suites for Home Owners
The main benefit of secondary suites for home owners is the additional revenue it can bring. Whether you need a little help paying your mortgage buy renting out your basement suite, or you own multiple rental properties, a secondary suite addition is a lucrative investment.
A legal secondary suite will increase the value of your property. If you decide to put the home on the real estate market, a secondary suite could speed up the sale. Buyers will be attracted to a property that could generate revenue. Make sure your secondary suite is legal according to the City of Edmonton’s zoning bylaws, building and fire codes. If it isn’t you won’t be able to advertise your home with a secondary suite if you decide to sell.
Building a secondary suite is beneficial to seniors or people with disabilities. Not only will the additional revenue assist those on a fixed income, it will also give the option to get help with yard and home maintenance through a rental agreement. For example, a rental agreement could state that cutting the grass and shoveling the walks is the responsibility of the tenant. Secondary suites could allow seniors and those with mobility issues stay in their home longer.
As a landlord, you will benefit from tax deductions when claiming your rental revenue on your income taxes. You will be able to write off expenses including hiring a property management company, home insurance, legal fees, property taxes, repairs or maintenance costs on the property and the cost of utilities used by the suite.
Benefits of Secondary Suites for Tenants
Secondary suites provide more diverse housing options for those looking to rent in Edmonton. Many suites are built in established neighbourhoods that are near schools, shopping centres, recreational facilities and other important amenities. Secondary suites provide affordable housing options for those looking to live in lower density areas.
In many cases, basement suites can be more affordable than apartment rentals. Depending on the agreement, basement suites could give tenants access to a backyard and even a garage. These options are not usually available when you rent an apartment.
Building a Secondary Suite
With the recent downturn in Alberta’s economy, building a secondary suite in your home could help you pay your mortgage and other living expenses. It is a smart investment. The City of Edmonton has the Cornerstone’s Secondary Suite program to provide homeowners who want to build a suite with financial assistance. Eligible participants can access grants up to $24,000 to add a new suite to their home or upgrade a current legal suite.
Once you have your secondary suite ready to go, Rental Advisors can provide affordable property management services. Our services include advertising your property, screening applicants, complete management of the rental property and taking care of all the tough issues like eviction notices and tenant disputes.
If you’re considering building a secondary suite and becoming a landlord for the first time, contact Rental Advisors!