Looking for a way to generate extra income from your property while helping pay down your mortgage? Edmonton homeowners are increasingly turning to garden and garage suites as smart investment solutions. Let’s explore why these secondary dwellings are becoming the go-to choice for savvy property owners in our city.
What Are Garden and Garage Suites?
If you’re new to the concept, garden and garage suites are self-contained living spaces built in your backyard, either as standalone units or above a detached garage. Think of them as mini homes, complete with their own kitchen, bathroom, and private entrance. The City of Edmonton has been actively encouraging these developments as part of its strategy to create more affordable housing options while helping homeowners maximize their property’s potential.
The Investment Opportunity You’ve Been Looking For
A Reliable Income Stream
In today’s Edmonton rental market, garden and garage suites are in high demand. With monthly rental rates ranging from $1,200 to $1,800 depending on your neighborhood, these units can generate significant income. Compare this to traditional one-bedroom apartments, and you’ll often find that garden suites command premium rates due to their private, house-like feel.
Boost Your Property’s Value
Adding a garden suite isn’t just about monthly rental income – it’s about long-term value creation. Properties with legal secondary suites are increasingly attractive to buyers who recognize the income potential. When it’s time to sell, your investment in a garden suite could pay off handsomely through a higher property value.
Your Mortgage Helper
Let’s crunch some numbers: If your garden suite rents for $1,500 monthly, that’s $18,000 annually toward your mortgage. For many Edmonton homeowners, this income covers a significant portion of their monthly mortgage payments, making homeownership more affordable and sustainable.
Flexibility for Changing Family Needs
Beyond the financial benefits, garden suites offer incredible flexibility. Many Edmonton families use these spaces to house aging parents, adult children, or extended family members. It’s the perfect balance of proximity and privacy – your loved ones are close by but maintain their independence.
Edmonton’s Hot Rental Market
The numbers tell the story: Edmonton’s rental market is experiencing strong demand, with vacancy rates dropping and rental prices rising. This trend is particularly noticeable in popular neighborhoods where renters seek quality housing options close to amenities.
When comparing investment options, garden suites often outperform traditional rental properties. While a rental condo might require a $300,000+ investment, a garden suite can be built for $100,000-$150,000 while potentially generating similar rental income.
Building Your Suite: Costs and Considerations
Investment Overview
Current construction costs in Edmonton typically range from $100,000 to $150,000, depending on size and finishes. This includes:
- Permits and design work
- Foundation and construction
- Utility connections
- Interior finishes
- Landscaping
Financing Solutions
Edmonton offers several paths to finance your garden suite:
- Home equity lines of credit (HELOC)
- Refinancing your existing mortgage
- Construction loans
- City grants and incentives (when available)
Maximizing Your Return
Design for Success
To attract quality tenants and maximize rental income:
- Focus on modern, efficient layouts
- Install energy-efficient appliances
- Create private outdoor spaces
- Use durable, low-maintenance materials
- Consider smart home features
Smart Rental Strategy
Research similar rentals in your area to price competitively. Edmonton’s market can support premium rates for well-designed suites, but finding the sweet spot is crucial for maintaining high occupancy rates.
Tenant Selection
Remember, your tenants will be living close to your home. Take time to:
- Conduct thorough background checks
- Verify employment and references
- Clear communication about expectations
- Document everything professionally
The Bottom Line
Garden and garage suites represent a unique opportunity in Edmonton’s real estate market. They offer a practical solution to housing affordability while providing homeowners with steady rental income and increased property value. As our city continues to grow and housing demands rise, these investments are positioned to deliver strong returns for years to come.
Whether you’re looking to offset your mortgage costs, generate passive income, or create flexible living arrangements for family members, a garden or garage suite could be your next smart investment move in Edmonton’s dynamic real estate market.
