Garden Suite Rental Unit
Establishing a secondary dwelling within the Greater Toronto Area presents a strategic avenue for augmenting your income, effectively offsetting mortgage expenses and generating a surplus.
This endeavor unfurls a compelling prospect to secure construction financing, defray expenditures through rental income, and subsequently cultivate additional financial gains.
The primary objective is to enhance the occupancy of single-family residential neighborhoods without resorting to the construction of high-rise complexes.
Each garden suite structure has the potential to command monthly rental rates between $2000 and $3000, making it a considerably superior investment compared to acquiring a new condominium unit.
Short Term Rental
Leasing a garden suite for short-term stays proves highly lucrative, potentially yielding daily earnings of $150-$250 before factoring in management expenses and costs.
Long Term Rental
Engage a real estate agent to assist in securing a long term tenant. Garden suites present excellent alternative choices to apartments, condominiums, and basement units.
Garden Suite
| Size | 450 sq ft | 644 sq ft |
|---|---|---|
| Taxes & Fees | $230 | $350 |
| Rent Income | $1700 | $2300 |
| Investment | $235,000 | $285,000 |
| NOI | $1470 | $1950 |
| NOI with Financing | + $425 | + $682 |
| Cap Rate | 7.5 | 8.1 |
Condo Unit
| Size | 450 sq ft | 644 sq ft |
|---|---|---|
| Taxes & Fees | $540 | $715 |
| Rent Income | $2050 | $2530 |
| Investment | $620,500 | $733,000 |
| NOI | $1510 | $1815 |
| NOI with Financing | – $1250 | – $1455 |
| Cap Rate | 2.9 | 3.1 |
