Big News for Toronto Property Owners: Adding Rental Units Just Got Easier!

A new by-law could make your life much easier if you own property in Ontario.

Ontario Regulation 462/24, an amendment to the Planning Act, streamlines the rules for adding additional residential units (ARUs)—also known as secondary or basement apartments and coach houses. Whether you’re looking to create extra income, increase your property’s value, or house family members, these changes mean fewer headaches and more opportunities.

For property owners in Toronto, these provincial changes align well with the city’s updated zoning rules, giving you even more options to maximize your property’s potential.

What’s Changed?

Easier Rules for Additional Residential Units (ARUs)

Note: Toronto already permits up to four units per lot in low-rise residential zones (detached, semi-detached, and rowhouses). This means Toronto homeowners could create a combination of units within the house and ancillary structures.

Provincial Changes:

• • You can now add up to two ARUs to your detached, semi-detached, or rowhouse properties in urban residential zones. Previously, the rules only allowed one ARU, making it harder to maximize your property’s rental potential.
  • ARUs in separate structures, such as a backyard studio or garage, are also allowed—as long as the main building has no more than two units.

More Flexible Zoning

Toronto-Specific Details: Toronto’s zoning by-laws allow for flexibility in angular planes, setbacks, and distances between structures. For instance, garden suites—like coach houses—are supported under recent by-laws.

Provincial Changes:

• • Structures can now exceed angular plane restrictions (the “invisible slope” that affects building height near property lines).
  • ARU buildings need only be 4 meters apart, down from the previous 6-meter minimum in most areas—or closer if your municipality allows it.

Increased Buildable Space

Toronto-Specific Details: Toronto’s zoning rules align with the new provincial 45% coverage limit and offers flexibility in specific neighbourhoods to maximize buildable areas.

Provincial Changes:

• • You can now cover up to 45% of your lot with buildings and structures, increased from the prior 40% limit, giving you more freedom to add usable square footage.
  • You can add as much total floor space as you like, as long as it follows local by-laws.

What This Means for You

• Faster Approvals = Less Stress
• No more months of back-and-forth with zoning departments. These simplified rules mean you can get approvals more quickly, saving time and energy.
• Save Money on Compliance
• Streamlined guidelines mean lower legal and administrative costs. You won’t need to hire as many consultants or spend thousands making tiny adjustments to plans.
• Earn Extra Income with Rentals
• Adding a second or third unit to your property could generate passive income, offset your mortgage, or fund other goals. For example, a basement apartment or coach house could bring in $1,500–$2,500/month depending on your area.
• More Affordable Housing for Family
• Need space for aging parents or adult kids? ARUs are a great way to keep family close without overcrowding your main living space.

Why This Matters for Toronto Communities

These changes aren’t just about making life easier for you—they’re about addressing Toronto’s housing challenges. By encouraging ARUs and multiplexes, we’re creating more affordable housing options in existing neighbourhoods, reducing urban sprawl, and supporting sustainable growth.

What to Do Next

If you’ve been considering adding a rental unit or a family suite to your property, now is the time to act. These changes are already in effect, and Toronto’s municipal rules are designed to align with and complement the new provincial framework.

👉 Need guidance on how to get started?

We have a full-time crew ready to help you understand if an ARU is the right move for you. At The Spring Team Real Estate, we specialize in helping Toronto property owners like you make smart decisions about your home. Whether you’re adding an ARU to increase income or prepping your home for sale, we’ll help you navigate every step with ease.

Contact us today to learn more about how these changes can benefit you. Let’s unlock the potential of your property together!

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