Thursday, December 29, 2011

Investing in Barrie - Legalizing Basement Apartments

Many times we receive calls from people looking to invest in Barrie for duplexes or second suites. As a Barrie Realtor and Property Manager, we have an obligation to tell you NOT to invest in certain areas where the homes are too new and not be possible to make a unit legal as it will not comply with zoning. You can however, if you wish, make a non-refundable application to make the request for a minor variance and re-zoning. 


We hear many stories. Some people say they haven't had any issues or wasn't as bad experience as they thought or just found it was a very expensive and time consuming procedure. It really is case by case specific. The key, is that it must be within a zoning area.


Buyer beware! What you need to know about legalizing duplexes in the City of Barrie aka "Second Suites" first is what is the zoning of that lot? Ask your Realtor, confirm with the City of Barrie Zoning Department and re-confirm with your lawyer to double check. Do your diligence on the property to make sure that it complies with what you want it to do.





A two-unit house is legal under the City’s Zoning Bylaw where;
  • A two-unit house is a permitted use, such as in zones RM1, RM1-SS, RM2, RM2-TH, RA1, RA2, C1 and C2.
  • The two-unit house is within a house constructed prior to 1945 and complies with the ‘converted house’ requirements of the Zoning Bylaw;
  • The two-unit house was legally established under a former Zoning Bylaw, and has continued in use ever since
  • The two-unit house existed on May 22, 1996 and complied with the requirements of the Resident’s Rights Act, 1994, and has continued in use ever since.
Not sure if existed on or before May 1996? If you don't have documentation and proof, the City will assume it is not. Building permits or inspections by the Fire Department are good sources of evidence. Without permits, the City will consider other evidence such as lease agreements or affidavits from former owners, tenants and neighbours, as outlined in our registration application form. Previous sales history from our real estate system is a good source too.

Other important notes before you make the application, know that two-unit house must be connected to municipal water and sewer services, and must meet certain lot frontage, lot area, floor area, building setbacks and off-street parking requirements, depending on which zone you are located in.

Check out these downloads for application and brochure for two unit homes.




Below is more information for your new or existing real estate investing business venture into multi-family units. Two important notes: under current legislation it's a one-time charge and not subject to a renewal and second, YES, it can be revoked if certain standards are not met. So, if we haven't scared you off yet (better to be informed) then please keep reading below for more info on legalizing your basement apartment in Barrie.

Registration of two-unit houses

The City of Barrie requires every two-unit house within the city to be registered. As part of the registration process, the City will confirm that the two-unit house is legal under the City’s Zoning Bylaw, and that the house complies with several health and safety regulations.

From the City of Barrie - here's a list of their Frequently Asked Questions:

What is a two-unit house?

A two-unit house is a building that contains two residential dwelling units. Often, a two-unit house starts as a single dwelling unit (detached, semi-detached or townhouse) with a second dwelling unit created within the house later on. The second unit is sometimes referred to as a second suite, an in-law suite or a basement apartment.

Why do two-unit houses need to be registered?

The City of Barrie wants to ensure all legal two-unit houses are safe. In many cases, the two-unit house is within a single family residential zone, where such a use is prohibited. Because of the illegal use, work to create the second suite was done without permits or inspections. In some situations, bad ventilation, electrical wiring or plumbing may be unsafe for the occupants. Through the registration process the house will be inspected to confirm compliance with the Zoning Bylaw, the Building Code, the Fire Code and the Property Standards Bylaw.
Once cleared by the Zoning Branch, inspections need to be arranged with the Fire Department and the Building Department. They need to inspect the entire house, meaning both dwelling units, and any common areas (i.e. laundry room and furnace room). If any deficiencies are found, the homeowner will need to correct them before the inspection can be passed.
A letter confirming registration of your two-unit house will be sent to you by the registrar when all approvals have been granted. The registration letter will indicate that on the date of registration, your two-unit house satisfied the zoning, safety and maintenance regulations of the day.

What will this cost?

Safety within two-unit houses requires special construction. For instance, drywall is an important component of a fire separation between the two units. If the existing materials do not create the required separation, new materials may be required. Overall, the costs will depend on how the units have already been constructed.
Costs will include:
  1. The costs to achieve the base construction requirements, if not already done
  2. The costs to apply for registration
  3. Any costs to upgrade the building or to do repairs as necessary to meet the maintenance requirements.
1. The base construction requirements are the upgrades necessary to convert a single dwelling unit to a two-unit house. The requirements depend on the date of conversion.
(a) Two-unit houses created on, or before July 14, 1994 must comply with Section 9.8 of the Fire Code. The cost of an inspection by the Fire Department is $275. If construction upgrades are necessary, additional fees must be paid for a building permit.
(b) Two-unit houses created after July 14, 1994 must comply with the Ontario Building Code. A permit will be required and the fee is based on the area of the second suite. A permit for a 500 square foot suite would cost about $200.
2. All two-unit houses must be registered, including those previously approved and inspected under building permits. The registration fee will depend on the inspections that will be necessary:
(a) All applications are subject to a $155 administration fee.
(b) Unless there was a permit previously issued to create the two-unit house, a Zoning review fee of $80 will be charged.
(c) The Fire Code inspection will be $190.78 for initial inspections and one re-inspection. Any further inspections that are required are charged at $95.39/hour. Units created within the recent two-year period under a building permit do not need a Fire Code inspection.
(d) The Property Standards inspection will be $285 for units not previously inspected, and $155 for a maintenance inspection for those units previously inspected and approved. Units created within the recent two-year period under a building permit do not need a Property Standards inspection. The minimum registration fee is $150 for two-unit houses created under a building permit within the most recent two-year period. The maximum registration fee is $800. Building upgrades, repairs and renovations will vary depending on the extent of the required work. Any material alterations to the building will require a building permit at an additional cost.

So know BEFORE you make that offer firm. And we're not here to solicit to anyone but to inform and educate the consumer. This forum is for educational purposes only. And if you're getting any pressure from anyone to sign off before you've done your diligence or know for sure that you can do something with a certain property, you should be questioning why and use someone else. You should always have the right to make an offer conditional upon inspection and lawyer approval. If you choose to waive that right then that choice is yours and yours alone.


For more information on the City of Barrie registration of second suites and basement apartments you can click here.


Happy investing and cheers to you wanting to take that step in creating the wealth for yourself that you greatly deserve.


Invest. Build Wealth. Retire.


*not intended to solicit anyone with written agency agreement. Shannon Murree and Team handle your residential investment needs from analyzing, investing, tenant placement and property management

2 comments:

  1. Nice post! Thank you for sharing this interesting blog. Home inspection makes us informed about the home like to know about the heating and cooling of the system, plumbing system, and wire breakage,contruction.

    Innisfil home inspector

    ReplyDelete
  2. Pleasure is ours.

    Happy investing.
    Cheers to your wealth!
    Barrie Real Estate Investing Team

    ReplyDelete