Buying a home with a basement suite can be a smart investment, especially if you’re looking to generate rental income. But not all basement suites are created equal. Before you sign anything, it’s crucial to confirm that the suite is legal and up to code.
Mike Holmes, well-known Canadian contractor, warns homeowners about this in his latest podcast episode.
Listen to Season 5, Episode 4 of the Holmes on Homes Podcast with Mike Holmes, “Guide to Building Legal Basement Suites in Canada? Must-Have Modifications & How to Find the Right Contractor” on Spotify and Apple Podcasts, or watch the full episode on YouTube.
Don’t just take the seller’s word for it. Ask to see proof of registration and building permits. In Ontario for example, a legal basement apartment must meet Ontario Building Code, fire safety, and local zoning requirements.
Call your local building department to get a record on the property. Look for proper fire separations, interconnected smoke alarms, and adequate ventilation.
There should also be a separate entrance, and every bedroom must have a proper egress window in case of emergency.
Utilities are another key factor. While separate utility meters aren’t mandatory, a dedicated electrical panel and independent heating/cooling ducts are often required. Mike Holmes suggests a heat pump mini-split. They are an ideal choice as they don’t require additional ductwork, and the tenant has full control over the indoor temperature. These features help ensure the tenant’s safety and your home’s efficiency.
Finishing Your Basement? Read This Guide to Basement Renos by Mike Holmes First.
If the suite isn’t legal, you could be forced to remove it—or spend thousands of dollars to bring it up to code. His advice? Do your homework. Hire a knowledgeable contractor and work with your local building department who understands what a legal secondary suite in your area requires.
And if the suite doesn’t meet code, you will have to get quotes for the necessary upgrades. You might need to install new exits, change the layout, or add safety features. These costs should be factored into your offer.
A legal basement suite can add serious value to your home, but only if it’s done right.
Listen to Season 5, Episode 4 of the Holmes on Homes Podcast with Mike Holmes, “Building Legal Basement Suites: Key Features, How to attract quality tenants, and Tips for Success,” launching Thursday, May 8 on Spotify and Apple Podcasts, or watch the full episode on YouTube.
Looking for A Podcast With Expert Home Reno Tips? Check out The Holmes on Homes Podcast with Mike Holmes
The Holmes on Homes podcast with Mike Holmes goes deep into the world of construction, skilled trades, and smart building. But it’s also about the bigger picture—how to live better, build safer, and make confident choices about your home. Mike Holmes and his guests bring honest insights, expert know-how, and real-life stories to every episode, making it a must-listen whether you’re on the tools or just want to understand how things are built right.
Holmes on Homes Podcast with Mike Holmes is available on all podcast streaming platforms, including Mike Holmes’ YouTube Channel as well as Apple Podcasts and Spotify.
About Mike Holmes
Mike Holmes is the renowned host of Holmes on Homes, a popular podcast where he shares his expert insights on home renovation, construction, and problem-solving. With years of experience in the building industry, Mike offers listeners practical advice and solutions, helping them navigate home improvement challenges effectively.