Now that you know, you are allowing a tenant to live in an illegal suite, with no water or sewer. Fines can be large.
I have had this on several garage rentals and did the following in the 20067 boom in Edmonton. Rents for storage garage were $150-300 per month. Bachelor suites rent for $700. I have zero tolerance.
1. The garage rental does not fall under the Residential Tenancy Act. May fall under the warehousemen act???
2. Tenant was immediately served with a notice to stop residing in the premises.
3. Continued use as a sleeping accommadation would be cause for immediate termination. No 14 day notice. Immediate notice. My thinking was a judge would not fine me for locking out a tenant who was sleeping in a dangerous garage, with no fire alarms, no sanitation and heating system. However the fine for allowing a tenant to continue to sleep is over $8000
4. Change the locks after termination.
5. I see you in court.
One reason I don't like renting garages, when you are an absentee landlord (not living on site)