A basement suite can make a home look a lot more affordable on paper.

If a property has a suite renting for $1,800 or $2,000+ a month, it’s easy to immediately start subtracting that income from the mortgage payment and thinking, “Okay, we can make this work.”

And maybe you can.

Homes with suites can be a great option, whether you’re looking for a mortgage helper, somewhere for your parents to live, space for adult children, or simply a home that gives you more flexibility in the future.

But before we let that rental income influence what we’re willing to pay for a house, there are quite a few questions we’d want answered first.

Because not every “suite” you see advertised in Langley is the same.

First Question: Is the Suite Actually Authorized?

This is one of the first things we'd want to establish.

Just because a basement has a kitchen, bedroom, bathroom and separate entrance doesn't automatically mean it's an authorized secondary suite.

In the Township of Langley, secondary suites require a building permit and must meet applicable municipal bylaws and provincial health and safety standards. TOL Langley City also has permitting and Building Code requirements for secondary suites. City of Langley

If we're representing a buyer, we don't want to make assumptions based on the listing description. We'd want to investigate the property's records and understand exactly what we're buying.

An unauthorized suite doesn't automatically mean we'd walk away from the house, either. It means we need more information so our buyer can make an informed decision.

Can You Actually Use the Rental Income to Qualify?

This is a big one.

We've had buyers look at a home and immediately calculate the full suite rent into what they can afford. But your mortgage lender may not look at that income the same way you do.

Depending on the property, financing and mortgage insurer, different approaches may be used to calculate rental income for qualification. For example, CMHC currently allows specific rental-income approaches for owner-occupied properties with additional units. Canada Mortgage and Housing Corporation

That's why we'd want your mortgage broker involved before you stretch your purchase price based on anticipated rent.

A $2,000 monthly rent cheque doesn't necessarily mean you should add $2,000 to your housing budget.

What If There's Already a Tenant?

This changes the conversation again.

If you're purchasing a property with an existing tenant, don't assume you can simply take possession and decide what you'd like to do with the suite afterward.

We'd want to review the tenancy details, current rent, deposit information and the seller's documentation, and understand your plans for the space.

Maybe you're perfectly happy having the existing tenant remain.

Maybe you're buying the property because your parents are going to live downstairs.

Those are two very different situations, and we'd want to address that before writing the offer, not a week before possession.

Don't Forget About Insurance

We'd also tell your insurance provider exactly how the property is being used.

A home with a rental suite can have different insurance considerations from a home occupied solely by the owner.

This is also why we commonly include an insurance subject when appropriate. We'd rather find out during the subject period that there's an issue with insuring the property than after you've committed to purchasing it.

Where Is Everyone Going to Park?

This sounds like a small thing until you're actually living there.

Imagine a household with two vehicles upstairs and another two downstairs.

Does the driveway comfortably accommodate everyone? Will cars constantly need to be shuffled? Is everyone assuming there's street parking?

And don't automatically assume the suite comes with a dedicated off-street spot. The Township of Langley's current parking information specifically says owners of licensed secondary suites aren't required to provide off-street parking to tenants, and legal street parking operates on a first-come, first-served basis. TOL

This is exactly the kind of thing that doesn't seem important during a 20-minute showing but can become very important once you live there.

How Are the Utilities Set Up?

This is another question we'd ask.

Are the utilities shared? Does the tenant pay a percentage? Is electricity separately metered? Who pays for internet? What about water and sewer?

The Township also currently applies an annual Secondary Suite Infrastructure Fee to properties with secondary suites, with additional water and sewer charges where applicable. TOL

None of this necessarily makes a suite a bad investment. We just want to understand the actual costs, rather than looking only at the monthly rent coming in.

Does the Suite Actually Work as a Suite?

This is where we'd stop looking at paperwork for a minute and actually look at the space.

Does it have a separate entrance?

How much natural light is there?

Is there enough storage?

Can you hear every footstep upstairs?

Is the laundry shared?

Does the tenant have usable outdoor space?

Where do they put their garbage and recycling?

Would you be comfortable living there?

A beautifully finished basement doesn't automatically make a great rental suite.

And if we're counting on consistent rental income, we'd rather buy a space that someone will actually enjoy living in.

What If the Suite Is for Family Instead?

This is becoming increasingly important.

Not everyone searching for a home with a suite in Langley wants a tenant.

Sometimes Mom and Dad are moving in.

Sometimes an adult child wants their own space while saving for a home.

Sometimes buyers are planning ahead and simply like knowing that the house can change with their family.

In those situations, our wish list might be completely different.

We'd pay more attention to things like stairs, natural light, access to the backyard, bedroom size, a full bathroom and how connected—or separated—the two living spaces feel.

A great mortgage-helper suite isn't necessarily the same thing as a great multigenerational living space.

What About Adding a Suite Later?

Sometimes the right house doesn't have a finished suite yet, but it has a basement that looks like it could work.

This is where we'd be careful about saying, “Oh, you can just put a suite in.”

Maybe you can. But we'd want to investigate before relying on that assumption.

The Township of Langley requires a building permit for secondary suites, and its current rules have also changed as BC's small-scale multi-unit housing legislation has been implemented. Eligibility and what can be built can depend on the property, zoning, servicing and other factors. TOL

Interestingly, there are also financing programs specifically related to adding secondary suites. CMHC currently has a refinance program for eligible homeowners creating self-contained secondary suites that comply with applicable bylaws and regulations. Canada Mortgage and Housing Corporation

So if adding a suite is part of the plan, we'd investigate that particular property rather than assuming every basement can be converted.

The Suite Shouldn't Make You Ignore the Rest of the House

This might be our biggest piece of advice.

We've seen buyers get so focused on the potential rental income that the suite starts driving the entire decision.

But you're still buying the whole property.

Do you like the neighbourhood?

Does the upstairs work for your family?

Is there enough parking?

What's the condition of the roof, furnace and other major components?

Is the yard usable?

Would you still want the house if the suite sat vacant for a few months?

That's a question we'd seriously consider.

The suite should make a good house work even better. It shouldn't be the only reason the house works.

Looking for a Home With a Suite in Langley?

This is where having someone help you search beyond the basic bedroom and bathroom count can make a difference.

Maybe you're looking for an authorized suite with a mortgage helper. Maybe you need two separate living spaces for a multigenerational family. Or perhaps you'd like a basement with the potential to add a suite in the future.

Tell us what you're actually trying to accomplish, your budget and the areas of Langley you're considering, and we can help narrow down the properties that make sense—and flag the questions worth asking before you fall in love with one.

Want us to send you the current Langley homes for sale with suites? Reach out and we'll set up a search specifically for what you're looking for.

Jen Murphy
Murphy Real Estate Group
Stonehaus Realty 
778-882-5478
info@murphyreg.ca
www.MurphyRealEstateGroup.ca