Non-conforming basement suites in Calgary duplex

[PhilUkrainetz]

Hi there everyone,

I am looking at maybe purchasing a duplex in Calgary that has two non-conforming basement suites. The numbers look reasonable.

I realize the City usually doesn`t say anything. And there are ample parking spaces and the place has been there since 1976. I also realize these basement suites are everywhere.

Any quick thoughts on buying a place with "non-conforming" basement suites? Does REIN suggest staying away from them?

-Phil

 

[DonCampbell]

Anything non-conforming is an added risk. Check out your cashflow if these suites were forced to be taken out of the mix, to see if you are wanting to run the risk

All it takes is one disgruntled ex-tenant or neighbour to complain to the city and they can come in and order you shut down.

Some investors are OK with this risk, most are not. You may wish to take a look at the discussions going on at City Hall right now regarding secondary suites as there are some changes in works.

Even if they do change the rules for your area, you will need to comply with the safety regulations they set out. So do your homework at the city.

 

[Nir]

Phil, you should distinguish between non-conforming and non-legal. In a few cities in Ontario for example the more important criteria is that the property`s use is legal. A property being legal non-conforming is not an issue for most investors in those cities. In your case, sounds like it is not just non-conforming but also non-legal(?) In this case risk is considered higher that the city will require closure of one or more unit/s as Don mentioned.