A basement apartment can help renters keep housing costs down. But that cute basement apartment may come with a set of unique challenges.
This guide will walk you through the details to look for before signing a lease for a basement unit, which costs should be included in your lease, and whether you should invest in tenant’s insurance.
For this guide, our editorial team reviewed Ontario’s guide to adding a second unit, the Electrical Safety Authority’s Certificate of Acceptance guide, Ontario’s renter-rights guide and the Landlord and Tenant Board’s Form T6 instructions for municipal, electrical, tenant-rights and application information.
What Should You Know Before Renting A Basement Apartment In Ontario?
Call the municipal building or planning department to see if there’s a building permit and/or licence/registration for the basement. Ask about inspection results. This is a stronger indicator that the basement is legal than asking landlords to provide a list of licenses/certificates. For example, an ESA Certificate of Acceptance certifies that a piece of electrical work passed an ESA review. It’s not necessarily an indicator of whether or not the apartment is legal.
Inspect the apartment during daytime. Check safety features with the landlord. Get utility costs and common area arrangements in writing. Take photos of conditions.
If you have difficulty getting landlords to allow you to check safety features or answer questions about licences/inspections, consider withdrawing your application and checking with the city yourself.
Is The Basement Apartment Legal?
| Record or check | What it can show | What it cannot prove alone |
|---|---|---|
| Municipal permit and inspection file | Whether work was done with a valid permit; what city inspections were done and passed. | That later unapproved changes were never made |
| Zoning or planning response | If a unit’s use conforms to existing local regulations OR if another approval is needed. | Building, fire or electrical compliance |
| ESA Certificate of Acceptance | That the electrical work identified in the notification was reviewed and has passed inspection. | That the whole apartment is a legal second unit |
| Fire or property-standards inspection record | What that authority inspected and any orders or outcomes | Every building, zoning or electrical requirement |
There isn’t a single basement-apartment certificate that would apply across the province. Ontario leaves it up to the municipality to decide on zoning regulations, building permits, inspections, licensing/registration requirements and so on. However, other factors, like property standards, electrical, fire, etc., are controlled by separate authorities. Getting the ok from one does not necessarily mean you’ve got the ok from the others.
Start by contacting the municipality. Give the office the complete address, including the basement unit. Find out: Is there a 2nd unit on record? Are there any outstanding orders? Were building permits issued, and have they been closed? Does the municipality require licensing/registration of basement apartments? Get their response in writing if possible.
Questions To Ask Before Renting A Basement Apartment
| Question | Evidence to request or observe | Reason it matters |
|---|---|---|
| How can I leave during a fire? | ask for / look for evidence of usable exits; unobstructed access; windows/doors that open/operate properly. | Exit routes must be usable in spaces as actually furnished. |
| Do the alarms work? | A test of smoke and carbon-monoxide alarms with the landlord. | A device on the ceiling is not proof that it operates. |
| How are utilities divided? | Separate meter, fixed amount or written allocation formula | A verbal estimate can turn into a recurring dispute |
| What is shared? | Written rules for laundry, parking, storage, yard and entrances | Shared access affects cost, privacy and daily use |
| Has there been water or mould? | Stains, odours, dehumidifiers, repair invoices and the landlord’s explanation | Fresh paint can hide a recurring moisture problem |
What To Inspect Before You Sign
- Check that exterior doors and accessible windows close and lock properly. Never accept interior doors with locks that could prevent you from leaving the unit quickly if necessary.
- Make sure that you can access the exits. Look for signs of trouble: a severely low or damaged ceiling, exposed electrical wiring, heaters used when they’re not supplemental, overloaded power bars.
- Smell for gas leaks or sewer problems, and look for mould, dampness, water-stained walls, condensation or patchwork. If you notice anything amiss, ask what happened. Ask what problems have been repaired.
- Check the plumbing. Turn on the taps, make sure you have hot water, and see how quickly the water drains. Flush the toilet.
- If the heat goes out at midnight, who will fix it? If there’s a leak, who will stop it? Get an answer before you move in.
- Make sure the lease correctly identifies the rental unit and any included parking, storage or shared spaces.
- Before moving your things into your new digs, take photos to document its condition.
Don’t assume that just because you’ve toured an apartment, it complies with building, electrical, fire, or other codes. If you’re unsure or have questions about whether a building or piece of equipment is legal or safe, contact the appropriate electrical, fire, or municipal authority.
What If You Find A Serious Problem After Moving In?
- If it’s an emergency and you’re in immediate danger, get out of your home and call the fire department, gas company or 911 for help.
- Send your landlord a written notice describing the problem, when it started, what kind of damage it’s causing, and what repairs you want your landlord to make. Take photos or videos and keep records of all communications.
- If the problem violates building, fire, public health or property standards, contact your municipality. Ask for a file number for your records.
- Get advice before withholding rent or breaking a fixed-term lease.
- You may apply to the LTB using Form T6 to get an order to make repairs, bring the rental up to standards, or even be allowed to end the tenancy. These orders are not guaranteed.
- If you have tenant’s insurance, contact your insurer as soon as possible if your rental becomes uninhabitable following an insured event or if your belongings have been damaged. Keep damaged items (unless they are dangerous) and keep all receipts for any additional costs you’ve incurred.
Read More: Review Ontario’s Rules for Landlord Entry to a Rental Unit
Do You Need Tenant Insurance For A Basement Apartment?
Tenant insurance can cover your belongings if there’s an insured loss. Some policies also cover additional living expenses if an insured loss makes your home unlivable. It also provides liability coverage if someone sues you for property damage or bodily injury. Tenant’s insurance does not cover the home’s structure, which is the landlord’s responsibility.
Tell your insurance broker or insurer if you’re renting a basement apartment. Not all basement apartments are legal, and having tenant’s insurance doesn’t necessarily mean it’s legal.
Ask specifically about coverage for mould, seepage, sewer back-up and overland water, as well as the limit of liability for extra living expenses, jewellery, bicycles, etc. And be sure to list the rental unit the same way it appears on your lease.
Read More: See How Tenant Insurance May Cover Basement Water Damage
Documents To Keep When You Move In
- Signed lease
- Any agreements regarding utilities
- Rules about parking and shared spaces
- Any written communication from the municipality, landlord, etc.
- Move-in photos with dates and times
- Written record of any pre-existing damage, marks, odours, etc. in the unit
- Emergency contact information for the landlord, building management, and utility companies
- Renter’s insurance documents
- Inventory list
- Key receipts
Read More: See When a Renter May Be Responsible for Guest Damage