Rental Suites in Nanaimo: A Homeowner’s Guide to Authorized and Legal Suites

With the increasing demand for affordable rental housing, many Nanaimo homeowners are considering adding rental suites to their properties. However, it’s essential to understand the regulations surrounding “authorized” and “legal” suites to ensure your suite meets local standards. Here’s a comprehensive guide to help Nanaimo homeowners navigate the ins and outs of rental suites, plus a new incentive for creating affordable housing.

1. Authorized vs. Legal Suites: What’s the Difference?

Authorized suites refer to those built before February 20, 2005, when there were no specific rules governing secondary suites. In 2005, the City of Nanaimo introduced regulations recognizing these suites as part of its housing strategy, classifying them as either authorized or unauthorized based on whether they meet certain safety standards.

Legal suites refer to suites constructed after February 2005. For a suite to be deemed legal, it must comply with modern building codes, offering a more regulated standard for safety and livability.

2. What Qualifies a Suite as Authorized?

For pre-2005 suites to be classified as authorized, they must meet key safety standards, including:

• Fire spread prevention: This includes 5/8” fire-rated drywall on the ceiling and walls separating the suite from the main home, along with separate heat venting.
• Fire egress: Each bedroom must have windows or exits large enough to allow escape during emergencies.
• Smoke detection: Hard-wired smoke alarms are required to ensure tenant safety.

These safety requirements help bring older suites closer to modern standards, making them suitable for rental use.

3. Legal Suites: Meeting Full Compliance

Legal suites built after February 2005 must comply with all current building code requirements. In addition to the safety features required of authorized suites, legal suites also include:

• Size restrictions: Legal suites can occupy up to 40% of the home’s total square footage.
• Independent utilities: Legal suites must have separate laundry facilities, water shutoff, and heating systems to enhance tenant privacy and convenience.

Legal suites are considered fully compliant and often provide homeowners and tenants with added peace of mind.

4. The Secondary Suite Incentive Program (SSIP)

Homeowners looking to create affordable rental housing can benefit from BC Housing’s Secondary Suite Incentive Program (SSIP), designed to support affordable housing in communities across British Columbia. This program offers financial assistance to homeowners for creating a secondary suite that can be rented below market value, with qualifying homeowners eligible to receive up to 50% of renovation costs, up to a maximum of $40,000.

The SSIP offers a forgivable loan to homeowners who meet the program requirements, including:

• The new suite must be on the homeowner’s primary property.
• The suite must be rented out at below-market rates for at least five years, as determined by BC Housing.

For more details, eligibility, and to apply, visit the BC Housing Secondary Suite Incentive Program.

5. Unauthorized or Illegal Suites in Nanaimo

Unauthorized or illegal suites still exist throughout Nanaimo and are tolerated unless a complaint is filed with the city. The City of Nanaimo follows a “complaint basis” policy, meaning that an inspection is usually triggered only if a neighbor or concerned party files a complaint.

If your suite is investigated and deemed unauthorized, you’ll receive a list of required upgrades from City inspectors, along with a deadline for completion. Failing to make these upgrades can lead to the suite being decommissioned, often by disconnecting the stove’s 220-volt wiring.

6. Buying a Home with an Unauthorized or Illegal Suite

If you’re buying a home with an unauthorized or illegal suite, it’s essential to understand the potential risks. While you can rent the suite, a complaint could result in a city inspection and potentially costly upgrades to bring it up to code. Additionally, income from unauthorized or illegal suites cannot typically be included in qualifying income for financing purposes, as lenders may not consider it reliable rental income.

7. Estimating the Number of Suites in Nanaimo

The total number of unauthorized or illegal suites in Nanaimo is difficult to determine. However, over 1,500 legal suites have been added to the housing stock since 2005, and approximately 60% of new homes built in recent years include legal suites. This influx of secondary suites has helped increase Nanaimo’s rental options, though competition has impacted rental rates.

Thinking of Adding a Suite? Key Considerations for Homeowners

If you’re considering adding a rental suite or buying a property with one, here are some tips:

1. Understand Local Regulations: Review Nanaimo’s specific requirements for authorized and legal suites to ensure compliance.
2. Plan for Possible Compliance Costs: If your suite is unauthorized, factor in the potential cost of bringing it up to code.
3. Explore SSIP Funding: The Secondary Suite Incentive Program offers financial support to homeowners creating affordable rental suites, which could offset your renovation expenses.
4. Consult with Professionals: Seek guidance from a real estate agent, building inspector, and legal advisor to understand what’s needed for a safe, compliant rental suite.

Work with Maegan Morton for Expert Guidance

As an experienced Realtor in Nanaimo, I’m here to help you navigate the complexities of rental suites, whether you’re buying, selling, or considering adding one to your property. I can help you understand the implications of authorized, legal, and unauthorized suites so you can make informed decisions.

Contact Me Today For personalized guidance on rental suites and properties in Nanaimo, reach out to Maegan Morton today. Let’s find the perfect solution for your property needs!

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Maegan Morton

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Licensed REALTOR®

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