Should You Build a Legal Basement Apartment in Ottawa? Pros, Cons & ROI

Ron Selmani
May 31
2 min read

If you're like many Ottawa homeowners, you've thought about converting your basement into a rental suite. With rising housing costs and low rental availability, it's a smart way to earn passive income and boost your property value.

But should you go through the process of building a legal basement apartment? Or just leave it as extra space?

At R&G Walls, we’ve worked on dozens of legal basement builds across Ottawa—from Barrhaven to Orleans—and here’s what you need to know before diving in.

✅ PROS of Building a Legal Basement Apartment

1. Rental Income Every Month

Even a modest legal basement suite can bring in $1,200–$2,000/month in Ottawa depending on location and layout. That’s mortgage help, retirement income, or pure cash flow.

2. Increases Property Value

Legal income units add major resale value, especially with investors or multi-generational families looking to share space. You’ll attract more buyers.

3. Legal = Protected

With a legal unit:

You can list on MLS and advertise openly
You’re covered by insurance and city protections
You avoid fines or stop-work orders

4. Flexible Use

Use it as an in-law suite, guest space, or even a home office. Having a fully finished, self-contained space gives you tons of options.

❌ CONS to Consider

1. Upfront Cost

Legal units cost more than a basic basement reno. Expect $65–$90/sqft, with permits, drawings, inspections, and materials like fire-rated drywall and egress windows.

2. Longer Timeline

Getting permits, passing inspections, and working with multiple trades takes time. A full legal suite may take 5–8 weeks to complete.

3. Building Code Compliance

You’ll need:

Egress windows
Separate HVAC or fire-dampened vents
Fire separation (5/8" Type X drywall)
Interconnected smoke/CO detectors
Soundproofing assemblies

We handle all of this—but it’s still more complex than a simple finish.

💰 ROI – Is It Worth It?

Let’s say you spend $80,000 on a legal suite:

Rent it for $1,700/month = $20,400/year
Full ROI in ~4 years (faster with appreciation + tax write-offs)
Property value increases by $60,000–$120,000 depending on finishes and market conditions

💡 Bonus: Many lenders factor rental income into mortgage approvals.

👷 What We Handle at R&G Walls

Code-compliant framing, drywall, insulation
Fire-rated wall and ceiling assemblies
Soundproofing, fire caulking, and trim
Priming, painting, and finish carpentry
Coordination with your plumber/electrician or referrals if needed
Optional: Full legal basement packages with permits and design partners

🏆 Ready to Build a Legal Suite?

If you want real income and long-term value from your basement, make it legal—and let the pros handle the details.

📞 Call or text 613-869-7391 for a free estimate📍 We serve all of Ottawa: Barrhaven, Kanata, Orleans, Nepean, and nearby