What if your basement could make you serious money? Here’s how to make it fully compliant with the law.

Converting a Basement into a Rental Apartment: What You Need to Know

Turning a basement into a rental unit can be an excellent way to generate income and increase a property’s value — but it requires strict compliance with building codes, municipal bylaws, and safety standards.

1. Regulatory Compliance

Each Canadian province has its own building and fire codes, along with additional municipal regulations. The main requirements typically include:

• Minimum floor area and ceiling height

• Size and number of windows

• Plumbing, heating, and ventilation systems

• A complete kitchen and bathroom

• Fire-resistant insulation, smoke and CO detectors

• Electrical safety and accessible exits

The apartment must have at least two exits, one of which can be a window that is easily accessible in case of emergency.

2. Risks of a Non-Compliant Unit

An unregistered or non-compliant apartment can lead to hefty fines and may endanger the safety of tenants. Renters have the legal right to request proof of compliance from the property owner.

3. Conversion Costs

The total cost depends on the current condition of the basement.
A finished basement that already has plumbing and large windows will cost less to convert than an unfinished space.
Expenses usually include installing a bathroom, kitchen, private entrance, and bringing everything up to code.

4. Added Value

Converting a basement into a rental suite can yield an average return on investment of about 75 % upon resale.
For instance, a $50,000 renovation could add roughly $37,500 to the home’s market value.

5. Steps to Follow

Before starting the project:

• Request multiple quotes and hire a qualified contractor

• Review municipal bylaws and obtain all necessary permits

• Plan your financing, for example through a mortgage broker such as Multi-Prêts Équipe Caron

In Summary

Transforming a basement into a rental apartment is a profitable and increasingly popular project, but it must be carried out properly — with professional guidance and full compliance with local regulations.

For any questions about this article or to obtain specific real estate advice, feel free to contact Dominique Marchand, your residential real estate broker at the company Royal LePage Tendance.

Dominique is at your disposal to assist you and answer all your questions about the real estate market in the regions of Montreal and Outremont. Thanks to her in-depth knowledge of these areas, she will be able to guide you effectively, whether you are looking to buy, sell, or simply get an evaluation of your property.

For direct contact, you can reach Dominique Marchand at (514) 621-2116. She is also available by email at dominique@royalepage.ca for professional exchanges.

Visit Dominique's website for more information: dominiquemarchand.ca. There you will find useful resources as well as properties currently on the market in the areas she serves.

Contact Dominique Marchand today for any questions or real estate needs in the regions of Montreal and Outremont. She stands ready to assist you with all your real estate endeavors with expertise and dedication.