Houses With Suites
In Greater Victoria, one of the most lucrative opportunities for real estate owners and investors alike is purchasing and owning houses with suites. As Victoria continues to expand, the demand for affordable accommodation continues to grow at steadily increasing rate. Victoria, which has Canada’s lowest rental vacancy rate, is an exceptional location for home owners to subsidise their monthly expenses with a low maintenance secondary accommodation. Surrounded by water on three sides and mountains on the other, the primary method of housing growth in Victoria will continue to be accomplished through an increase in residential density. This is not only the current trend, it’s in fact written into municipal community plans throughout Greater Victoria which provide detailed secondary suite development strategies. This trend, combined with Victoria’s exceptional vacancy rate, makes homes with secondary accommodation an obvious and prudent investment opportunity.
Houses with suites remain one of the best options for both first time home buyers and real estate investors. It’s critical that buyers and sellers have representation from a REALTOR® who understands what to look for and what to be aware of with such properties. Some of these topics include:
Municipal Specific Regulations
Each municipality (Victoria, Oak Bay, Saanich, etc.) within Great Victoria has different rules and regulations surrounding houses with suites. Most municipalities allow for secondary suites and have specific requirements that residential owners need to be aware of. Some of these include ceiling height requirements, floor area usage, permitted plumbing and electrical work as well as the necessary window size for egress. Important issues also arise around legal use, permitted use and zoning bylaws as they vary significantly throughout the various municipalities of Greater Victoria.
Income and Expenses
Houses with suites are an excellent way for owners to subsidise their housing costs. Prior to selecting the right property, a buyer needs a detailed understanding of precise income and expenses. Income will vary depending on many different factors, including neighbourhood, suite size and layout, utilities, state of repair as well as proximity to transit and amenities. Beyond mortgage principle and interest, expenses will likely include heat and hydro, house insurance, municipal utilities (water & garbage), repairs and maintenance and possibility property management.
Landlord Tenancy Act
In British Columbia, every residential tenancy (including houses with suites) falls under the rules and guidelines of the Residential Tenancy Act. This act sets out specific guidelines that both landlords and tenants must follow. The Act is in place to not only protect the rights of both the tenant and the landlord, but also to outline procedures to follow in case of a dispute or occurrence that is not explicitly addressed within the Act.
Buying a house with a suite is one of the best financial decisions a person can make. Working with a REALTOR® who has firsthand professional experience buying, selling and managing such properties is paramount. Get the correct information before you make your next major housing decision, contact Matt directly at matt@matteide.com or 250-704-9949.