Basement Suite Rental Income in Ontario
A legal basement suite is one of the best investments an Ontario homeowner can make. Monthly rental income varies by city, but homeowners across Brantford, Kitchener, Cambridge, Hamilton, Guelph, Brampton, and Mississauga are earning significant returns.
Expected Rental Income by City
- Brantford: $1,200–$1,600/month for a 1-bedroom suite
- Kitchener-Waterloo: $1,400–$1,900/month
- Cambridge: $1,300–$1,700/month
- Hamilton: $1,300–$1,800/month
- Guelph: $1,400–$1,900/month
- Brampton/Mississauga: $1,500–$2,200/month
Return on Investment
Let's look at a real example from Brantford: Build cost of $70,000 for a legal 1-bedroom basement suite. Renting at $1,400/month = $16,800/year. That's a 24% annual return on your investment. The suite pays for itself in just over 4 years, and then it's pure income.
Plus, a legal secondary suite adds $50,000–$100,000 to your home's resale value — so you get the rental income AND increased property value.
Legal Requirements
Since 2019, Ontario's Additional Residential Unit (ARU) legislation allows homeowners in most municipalities to create secondary suites. Key requirements include: separate entrance, proper fire separation, minimum ceiling height, egress windows in bedrooms, and a building permit. Build My Home Ltd handles every requirement to ensure your suite is 100% legal and code-compliant.
Tax Benefits
As a landlord, you can deduct expenses including: a portion of your mortgage interest, property tax, insurance, maintenance costs, and depreciation. Consult a tax professional for details specific to your situation.
Start Earning Rental Income
Build My Home Ltd has built dozens of legal basement suites across Ontario. We handle permits, construction, and inspections — you start collecting rent. Call 204-205-2064 for a free consultation.