The Pros and Cons of Additional Housing

Additional accommodation, what does that involve?

In recent years, the demand for additional housing has been growing rapidly. We are receiving a large demand for single-family residence plans with an additional dwelling, usually located in the basement. In the same line of demand, intergenerational homes are just as popular.

Whether you are considering new construction or a renovation of your current residence, the advantages, disadvantages and requirements remain the same.

The advantages of additional housing

The benefits of adding an additional dwelling to a single-family home are numerous and cover financial, social and functional aspects.

Source of additional income

Income from long-term rentals is often the reason behind the idea of ​​building a basement unit in a residence. Renting out living space to tenants generates a regular passive income that can help pay off the mortgage and cover maintenance costs.

Increase in property value

An additional dwelling can increase the value of the property by providing an additional asset. These properties are often sought after on the real estate market because they offer a variety of options: rental investment, accommodation for relatives, or independent workspace.

Intergenerational housing

While there are some notable differences between additional housing and intergenerational housing, they are similar in many ways and offer their own set of benefits for families who want to live close to their loved ones while maintaining their independence. For example, an elderly parent can live in the additional housing, avoiding having to move to a retirement home, while still benefiting from the support of their family. This sometimes allows these individuals to maintain their independence for longer.

Also, this option can help young adults leave the family nest by providing them with affordable housing to develop their independence.

Optimization of existing space

If your land has unused space or a convertible basement, creating additional housing allows you to optimize the space without having to move. It also allows urban areas to be densified without resorting to major new construction.

Solution to the housing crisis

Additional units are often smaller and therefore more affordable than traditional housing. This type of housing can play a role in addressing the shortage of affordable housing, particularly in cities near urban centres such as Montreal.

Reducing the ecological footprint

Building additional housing on existing land optimises the use of urban infrastructure such as water, electricity and roads, and minimises the environmental impact compared to building new single-family homes on new plots.

Tax credits and grants

In Quebec, financial incentives may exist to encourage the construction of additional housing, particularly in terms of energy efficiency (such as the Renoclimat or Novoclimat programs). This financial assistance can reduce the initial cost of construction.

In summary, adding additional housing offers long-term financial, social and practical benefits. It is therefore a strategic investment that meets several needs while increasing the value of the property.

The disadvantages of additional accommodation

While there are many benefits to additional housing, there are also several drawbacks (or potential challenges) that are important to consider before embarking on such a project.

High initial cost

Building an additional home is a significant initial investment. This includes costs related to designing plans, obtaining permits, construction, and installing utilities (electricity, plumbing, etc.). While it can be cost-effective in the long run, the initial investment can be a deterrent for some homeowners.

Additionally, unexpected expenses may arise along the way, especially in renovation cases. If the existing structure needs to be reinforced or if unforeseen problems arise during construction, such as foundations that need to be redone or utility networks that need to be upgraded.

Strict regulations

Some municipalities have strict regulations regarding additional housing. It is therefore essential to inquire about the feasibility of the project for the land in question since neighborhoods are divided into zones and this type of housing may or may not be permitted depending on the zones concerned. Zoning regulations may also limit the project by requirements in terms of size, location and architectural appearance.

Building Code Standards

Compliance with the Quebec Construction Code (and other local regulations) may require costly modifications. Requirements for access, fire safety or ceiling heights can add complexity to the project. A professional technologist or architect will be able to answer your questions about these standards.

Tenant Management

When renting out additional accommodation, you have to manage tenant relations. This includes rental agreements, repairs, payments, and possibly, but not desired, conflicts.

Additional maintenance

With two dwelling units on one property, general maintenance is more important. Plumbing, electrical and heating systems, as well as the exterior of the property (roof, facade) require regular maintenance, which can increase maintenance costs and time.

Impact on privacy

Living in close proximity to a tenant or even a family member in an additional dwelling can reduce the feeling of tranquility and privacy. The comings and goings of tenants, the sharing of certain spaces such as gardens or parking lots, and social interactions can create discomfort, especially if the dwelling is not well insulated or sufficiently independent.

Additionally, if the additional accommodation is rented to a family member (e.g. an elderly parent or adult child), this can sometimes create family tensions, especially if there is a lack of respect for the boundaries between the two units.

Exterior redevelopment required

Building an additional dwelling can impact the size of the outdoor areas. For some homeowners, this can be a significant compromise, especially if you like to have a large garden or if the children’s play area becomes limited.

Additionally, it is important to remember that adding an additional dwelling will require additional parking spaces, which could also reduce the usable area of ​​the land or create access issues, especially in urban areas where space is already limited.

Legal and tax obligations

Renting out an additional home may have tax implications. Rental income must be declared, and it may also result in a reassessment of your property value for property taxes. The amount of property taxes may increase based on the value added by the additional home.

Your home insurance may also increase. You will need to inform your insurer to ensure you have adequate coverage for both units and for any damage or accidents involving tenants.

Difficulty of resale

While a bachelor’s degree may appeal to some buyers, it may also discourage others who don’t want to deal with tenants or share land space. This can limit the number of buyers interested in the property, especially in areas where additional housing is less sought after.

In some areas, additional housing may not increase property values ​​as much as expected, especially if the local real estate market does not value this type of development. It is therefore important to carefully assess local demand before embarking on this type of project.

Liability and legal obligations

As a landlord of a rental property, you have legal obligations to your tenants, including maintaining a safe and habitable home. If problems arise (for example, an emergency repair or a violation of tenant rights), you could be held liable.

You could also be held liable in the event of an accident involving a tenant or guest in the additional accommodation. It is essential to ensure that all safety standards are met to avoid this type of problem.

Additionally, there is always a risk of rental vacancy. During periods when the property is unoccupied, you will still have to pay maintenance costs, taxes and possible utility bills.

In summary, although adding an additional dwelling offers considerable advantages, it also presents financial and administrative challenges that are essential to consider before making the final decision.

Points to consider when planning the project

Now that we have covered the advantages and disadvantages of a bachelor’s degree for a single-family residence, what should be considered when planning such a project?

Building regulations and permits

In Quebec, zoning regulations vary from one municipality to another. You must first and foremost check whether the construction of an additional dwelling is permitted on your land. Municipalities limit these constructions to certain zones. You must therefore check with the urban planning department of the city in question.

To obtain a building permit, the additional dwelling as well as the existing residence must meet municipal requirements.

Quebec Building Code (RBQ)

All construction in Quebec must comply with the Quebec Construction Code, which governs the safety, accessibility, and health standards of residential buildings.

Spaces and interior design

Separate entrances and privacy

In Quebec, units must have a separate entrance to ensure privacy.

Finished basement

In Quebec homes, it is common to transform the basement into an additional living unit. However, strict standards exist regarding lighting, ceiling height and emergency exits in these spaces. Doing business with professionals, such as the Dessina Plan team, will save you a lot of headaches.

Insulation and heating

Due to Quebec’s climate, good insulation is crucial. Make sure the additional accommodation is properly insulated to cope with harsh winters, with energy-efficient windows and well-insulated walls. Also consider an efficient and, above all, independent heating system, such as a central heating system or electric baseboards.

Electricity

In Quebec, many homes use electric heating systems. It may be relevant to provide separate electric meters for each unit. It is worth noting that for some municipalities, this point is mandatory.

Plumbing

Make sure the accessory dwelling unit has adequate plumbing, especially in areas where winter temperatures can pose a risk of frozen pipes. Solutions such as heated pipes may be necessary. Your contractor will be able to determine the materials needed for construction.

Parking and access to accommodation

Many Quebec municipalities have specific requirements for parking spaces. A bachelor’s degree requires one or two additional parking spaces (a quantity often determined by the number of rooms per dwelling). It is therefore essential to integrate a parking space into the plan, taking into account winter conditions.

Snow removal is an important factor to consider when designing access to the home. Plan for clear paths that are easy to maintain in winter.

Architectural design and integration

Although the architectural style depends on personal taste, it is important that the additional housing fits into the aesthetics of the main building. For example, most municipalities in Quebec require that the additional housing not affect the single-family aspect of the facade architecture. This means that access to the housing must be provided on the side or rear walls of the building.

Energy efficiency

In Quebec, there is an increasing emphasis on energy-efficient buildings. You may be eligible for grants or tax credits for homes that meet certain energy efficiency standards, such as those in the programs mentioned above (Rénoclimat and/or Novoclimat). It is recommended to consider options such as superior insulation, triple-glazed windows and heat recovery systems.

Stormwater management

It is well known that heavy rainfall and snowmelt can cause drainage problems and lead to flooding. It is important to ensure that building plans include proper stormwater management, particularly around the additional dwelling.

Construction budget

The cost of such a project can vary depending on the scale of the work and the standards to be met. It is essential to obtain a detailed estimate, taking into account materials specific to the Quebec climate (reinforced insulation, adapted windows, etc.).

Grants and financial aid

Programs like Renoclimat or Novoclimat offer incentives to improve the energy efficiency of homes. Check if your project can benefit from these grants, which would reduce costs in the long term.

In conclusion, taking into account the specificities of creating an additional dwelling, you should be able to make an informed decision in order to benefit from the advantages while being prepared to face the disadvantages. In any case, an additional dwelling must be functional, compliant with local regulations, and adapted to climatic and cultural conditions.

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