Adding a secondary suite to your home is one of the best ways to increase property value and generate additional income. With Kelowna’s strong rental demand and new regulations supporting secondary suites - including the Canada Secondary Suite Program and the new announcements about suites being allowed in townhomes, now is a great time to explore this option. Here’s what you need to know.

1. What Is a Secondary Suite?

A secondary suite is a self-contained living space within a home, such as a basement apartment or carriage house. These units must have a separate entrance, kitchen, and bathroom and meet local zoning and building codes. Sometimes suites may not satisfy all of this criteria, this is whats called a 'non-legal' suite. 

2. Benefits of Adding a Mortgage Helper

• Extra Income: Renting out a secondary suite can help offset mortgage costs and increase cash flow.

• Increased Home Value: Homes with legal suites often sell for higher prices. Non-legal suites also increase the value of homes, but not to the same potential as a legal suite. 

• More Buyer Appeal: Many buyers look for properties with rental potential, making your home more desirable. This is especially true given the current interest rate climates, as having suite income allows more buyers to qualify for higher purchase prices. 

3. Kelowna’s Secondary Suite Regulations

Kelowna allows secondary suites in certain zoning areas (note that provincial legislation may override this), but homeowners must comply with:

• Building codes and fire safety regulations

• Parking requirements

• Permitting and licensing

4. Cost & ROI of Adding a Suite

While costs vary, converting a basement into a legal suite typically ranges from $30,000 to $80,000. However, rental income can significantly offset these expenses, making it a worthwhile investment. Costs of adding in a carriage home will be higher than this, but the return on investment will also be higher as carriage homes command higher rent numbers. The new Canada Secondary Suite Program can make it possible to access the funding to add the suite into your home. 

In certain price points, suites can act more an inconvenience though - take for example a home in a high end neighbourhood worth $3,000,000 , buyers who are looking in this price point are less likely to want to share walls with tenants, and would likely rather have the square footage as part of their living space. 

5. Best Neighborhoods for Mortgage Helpers

• Rutland – High rental demand and affordable housing. Strong rental potential with close proximity to the UBCO campus. 

• Glenmore – Family-friendly with growing rental interest. 

• Lower Mission – Premium location with strong tenant appeal. In some of these areas, carriage homes will be a more attractive option based on buyer demographic. 

• Kelowna North / Downtown– These high density areas near the beach, Okanagan college, shopping, and restaurants make it a very strong rental market. 

Buyers in these communities also tend to be in the young demographic, meaning that the added income potential of the suite is very desirable to them versus an established older family who is less likely to need / want a suite. 

Final Thoughts

Adding a secondary suite can be a smart move for homeowners looking to maximize their property’s value. Whether you’re buying a home with suite potential or considering an upgrade, working with a local real estate expert can help you navigate the process. With multiple investment properties of my own, most of which being suited homes, I have years of first hand experience with suite ownership and strategy.

Interested in finding a home with a mortgage helper? Contact us today to explore available properties in Kelowna!