Duplex Suited?

[Bryce]

How can I tell if a half duplex can be suited legally? The property already has a suite in the basement but says it is illegal. I understand this could be egress, metering or heating of the unit that needs to be changed.



The zoning on each side is R-C2 so does this mean each side of the duplex can support a suite?

 

[vnwind]

Bryce



I don't hink you can suite legally a half duplex in calgary. The easier way is to enter address here http://www.calgary.ca/PDA/pd/Pages/Home-building-and-renovations/Secondary-suites/Secondary-suites.aspx



Good luck



Tai

 

[Sherilynn]

I know for certain that you may not legalize a suited duplex in Edmonton, and the City has no plans to allow suited side x side duplexes. Could be the same in Calgary.

 

[Matt Crowley]

It was nice to hear this topic discussed at the REIN Mastermind event this past weekend in Edmonton.



If the suite is illegal the cash flow is temporary. The function of the house has not changed. When the city finds out you will be shut down.



They didn't say "don't do it!"...but go in with eyes wide open (and pockets extra deep). Run pro formas on operating the property for its legal intended use. If that doesn't cash flow...pass, or invest to change the function.

 

[Bryce]

When you say the city will shut it down what exactly does this mean? Is there a fine for opening the suite again and being caught?



What do you mean invest to change the function? Zoning?

 

[Sherilynn]

If the suite is inspected (usually due to a complaint by a neighbour or disgruntled ex-tenant), the City will require that you remove certain items that are required in a functional suite (such as the stove wiring).



They will give you a timeline to have this done and will inspect the property to ensure that it has been completed.



So if you get "shut down," then you must break the lease with the lower suite tenant and you will receive only the income from the upper suite, which may be quite low for the entire half-duplex but may not be increased until the RTA guidelines allow (365 days after last increase + not during an ongoing fixed-term lease).



I received a call yesterday from someone who owns a suited half-duplex in Edmonton and has been ordered to remove the suite. Once the lower suite tenant leaves, she will be left with rent of only $1135 per month until next September - very low for a half-duplex in Edmonton, and likely to not cover her expenses. She could have huge negative cashflow until she is able to increase the rent. She wanted to sell the property to me (as "We Buy Houses Quickly!"), but I can't because of the negative cashflow.

 

[Matt Crowley]

[quote user=Bryce]When you say the city will shut it down what exactly does this mean? Is there a fine for opening the suite again and being caught?



What do you mean invest to change the function? Zoning?



The fine is $400 per day. This is all in Edmonton, I don't know about the Calgary rules.



Our experience was that once the Development Officer / Safety Officer inspected the suite and found it non-conforming, they immediately passed it on to the zoning department. The zoning department is not concerned in any way about the logistical problems or legal issues with evicting tenants. They demand compliance.



The city gave us 30 days to comply. I would not even consider reopening the suite after being instructed to shut the suite down.



Investing to change the function means to obtain a building permit for a new use class. If you are within a discretionary class, you can request for higher density housing such as a secondary suite.



The remainder of the investment is in construction and lost rent due to the time it takes to build.