Have you heard about the latest development in the Toronto real estate market?
Laneway homes are the next big investment, and many are looking to rake in on this brand-new opportunity.
If you have an existing property in Toronto, you may be sitting on a gold mine. If all that you are currently doing is storing unused equipment in your existing shed or collecting snow that you have to shovel, why not create an opportunity to collect an income instead?
That’s right…If you don’t use it, you may want to put a home on it!
What is a laneway home?
A laneway home is a detached secondary suite’ built into pre-existing lots.’ It is a unit that can be used as a rental property or another living space for family members who you may want to have close.
Are laneway homes legal?
The short answer is yes. With new municipal legislation being approved in 2018, this opened the opportunity for Toronto homeowners who owned a laneway to develop suites on their property.
Prior to 2018, laneway homes could only be built on a property if a homeowner first sought approval from the Toronto Municipal planning department.
Why would I want a laneway home in the GTA?
One reason you may want to consider a laneway home is because the municipal government is providing financial support to homeowners who build a laneway property that is used as a rental. The City of Toronto is addressing the need for affordable housing by helping homeowners take advantage of existing space. Whether you want to build it for an Airbnb or to rent to college students and the like, this is your chance to get financial help to do it.
In 2018, the municipal government launched the “Laneway Suites Pilot.” This program does come with stipulations, though. To offer your property for rent, you have to agree not to raise rent above the city’s average market rent for a period of 15 years following completion.
You will need to carefully figure out how much you can comfortably afford to offer this suite despite changes in the economy, specifically, inflation or even hyperinflation.
How much can I earn money from having a laneway home?
If you do take part in the Laneway Suites Pilot, you must bear in mind the limitations placed on you during the 15-year period. If you do choose to build on your own without the financial help of the municipal government, you can charge whatever the market may bear.
We have heard stories of homeowners making as much as $1600 per month on their laneway suites. That would all depend on where your property is located and the audience for your rental.
Does Constack build Laneway suites?
We thought you would never ask. Yes, that is what we do. We specialize in modular tiny ‘home’ units for residential and recreational purposes. Our M1, M2, and RC-1 units are ideal for Laneway suites. We even have a Growbox if you prefer to use your laneway to grow a garden.
How do I get started with the Laneway Home program?
If you want to take advantage of the Laneway Home Program, you can contact the City of Toronto municipal planning office or visit their website for further details.
Ready to build the modular unit of your dreams? Contact us to discuss how we can support you in building your future laneway home.
