Illegal secondary suites advertised as income opportunities on Calgary real estate listings

Calgary real estate listings are flush with ads trumpeting illegal secondary suites and one local agent says he sees nothing wrong with that.

Dan Johnston, who is trying to sell a home in Silver Springs, is advertising the fact that the house has five bedrooms with separate access to the two bedrooms on the lower level, making it perfect for a secondary-suite setup, if a buyer wanted to add a second kitchen and rent it out as a mortgage helper.

"If they retrofitted all those things, it still technically would be an illegal suite because it doesn't meet all the zoning requirements," he said.

"But at least it would be a little bit easier to get it closer and closer to someday being a legal suite, if the city ever changed their requirements."

• Alberta luxury homes get less than half asking price at auction
• City waives permit and fee for homeowners with illegal secondary suites
• Legal secondary suites needed for safe, affordable Calgary housing, students say

Johnston believes numerous buyers want the option of a separate suite to generate income that offsets mortgage payments, and says accurately describing the home's features helps buyers find what they're looking for.

And he's far from alone.

A search of Realtor.ca for the terms "Calgary" and "illegal" and "suite" yields more than 1,000 results, many of them active MLS listings advertising secondary suites as turnkey income opportunities.

One ad for a three-bedroom bungalow, for example, notes it comes with an "illegal suite in the basement" that's currently rented at $800 per month, with tenants who pay utilities and wish to stay.

Another listing for a split-level home with a two-bedroom "illegal suite downstairs" advises prospective buyers that, to "make the deal sweeter," the owner is in the process of installing a new furnace and hot water tank and the home already comes with two stoves, two fridges and two hood fans.

CREB perspective

The Calgary Real Estate Board says it's not wrong for realtors to describe listings with available illegal secondary suites, as to say otherwise would be misleading.

"We need consumers and members to be able to rely on it, so if the information is accurate then it meets that test," said Gemma Beierback, manager of member practice for CREB.

"An illegal suite doesn't involve a level of criminality, it's a matter of permitting." 

City policy

Coun. Evan Woolley, who represents the inner-city Ward 8, said he's both concerned and surprised that Calgary agents are advertising homes with available illegal suites.

But, he noted, there are gaps in the city's current policies, which allow suites in some areas and not in others, and require homeowners in areas not zoned for suites to go through a complicated and uncertain application process if they want to follow the rules.

"We have made the process very cumbersome and of a high risk in terms of outcome," Woolley said. "That is why we are seeing the continued expansion of illegal secondary suites across the city."

For his part, Johnston stands by his decision to advertise the house with an illegal suite.

"I think it helps both renters and it helps homeowners," he said.

"It makes everything more affordable for both parties."