Investing In Secondary Suites in Southern Ontario: A Lucrative Investment Opportunity in Kawartha Lakes and Peterborough

In Southern Ontario’s real estate market, investing in secondary suites have emerged as a game-changing solution for homeowners looking to maximize their property’s potential. These self-contained residential units, located within or on the same property as a primary residence, are particularly gaining traction in the picturesque regions of Linday (Kawartha Lakes), Orillia, Barrie, Oshawa and especially in Peterborough.

Let’s talk about secondary suites, exploring their costs, options, and the impressive revenue potential they offer to savvy homeowners.

The Rise of Investing in Secondary Suites

Secondary suites, also known as accessory residential units (ARUs), or additional dwelling units (ADUs) have become increasingly popular in Southern Ontario. They offer a dual benefit: addressing the pressing need for affordable housing while providing homeowners with a valuable source of additional income. In Kawartha Lakes and Peterborough, recent changes in regulations have made it easier than ever for property owners to capitalize on this trend.

Building Your Secondary Suite: Options and Costs

When considering adding a secondary suite to your property, you have several options to choose from. Each comes with its own set of considerations in terms of size, layout, and cost. Let’s explore the most popular types:

1. Basement Apartments: The Cost-Effective Choice

Basement apartments are often the go-to option for many homeowners due to their cost-effectiveness and use of existing space.

Size and Layout: On average, basement apartments in Ontario boast a floor area of around 825 square feet, with sizes ranging from just over 700 square feet to larger configurations, depending on your basement’s available space.
Finishing Costs: The cost to finish a basement and transform it into a secondary suite can range from $50 to $100 per square foot. If you need more extensive demolition, framing, electrical, hvac or ground plumbing this cost could swell between $125 – $200 per square foot. This means for an average-sized basement apartment of 825 square feet, you could be looking at a total cost between $41,250 and $82,500 to finish a basement into an apartment assuming not major framing, electrical, hvac or plumbing upgrades.

2. Garden Suites (AKA: Coach Homes, ADUs, Laneway Homes): A Private Oasis

Garden suites, also known as backyard cottages or granny flats, offer a unique blend of privacy and charm.

Size and Layout: These detached units can vary in size, typically ranging from cozy studios to multi-room apartments. Local zoning regulations and available lot space often dictate the size.
Finishing Costs: In Kawartha Lakes and Peterborough the cost to build a garden suite ranges from $200,000 to $350,000. This includes construction, design, permits, and utilities. The cost per square foot can range from $300 to $350, depending on the quality of materials and labor. The best part is Visture can complete these in 88 days and have them leased before completion to maximize ROI.

3. Above-Garage Units: Maximizing Existing Structures

For those with spacious garages, above-garage units offer a creative way to add living space.

Size and Layout: These units can be designed as compact studios or more spacious multi-bedroom apartments, depending on the size of your garage and your specific needs.
Finishing Costs: The costs are similar to those of garden suites, adjusted for the existing structure’s condition and the complexity of the conversion. Definitely there would be a savings compared to the garden suite because you already have the shell there instead of $300 a square foot, the costs are more in the range of $125 – $200 a square foot.

Maximizing Rental Potential: Features and Amenities

To ensure your secondary suite stands out in the rental market and commands top dollar, consider incorporating these trending features and amenities:

Modern Kitchen Facilities: A well-equipped kitchenette with contemporary appliances and ample storage is essential.
Natural Light and Open Spaces: Maximize natural light and create an open, airy feel to enhance the living experience.
Privacy Features: Separate entrances and soundproofing are highly valued by potential tenants.
Smart Home Technology: App-controlled lighting, temperature, and security systems offer convenience and energy efficiency.
Ample Storage: Walk-in closets and additional storage options are a major draw for renters.
High-Speed Internet: Reliable connectivity is a must-have in today’s digital age.
Eco-Friendly Elements: Energy-efficient lighting, water-saving fixtures, and sustainable materials appeal to environmentally conscious renters.

Revenue Potential: Turning Your Investment into Income

Now, let’s talk about the exciting part – the potential revenue you can generate from your secondary suite investment in Kawartha Lakes and Peterborough.

Potential Monthly Revenue & Rental Market

As of March 2025, the rental market in the various markets Visture works in (Kawartha Lakes (Lindsay), Peterborough, Oshawa, Barrie, Orillia)

A 1-bedroom apartment averages around $1600-1800 per month.
A 2-bedroom apartment fetches about $1800-2200 monthly.
A 3-bedroom apartment can get $2300 + monthly

Based on these figures, families in Kawartha Lakes and Peterborough can expect to generate substantial monthly revenue from their secondary suites

Return on Investment (ROI) Considerations

While specific ROI statistics for Kawartha Lakes and Peterborough are not directly available, the general trend in Ontario suggests that secondary suites are a viable and profitable investment. Here’s why:

Increased Property Value: Homes with secondary suites are generally more attractive to buyers, potentially leading to a higher selling price.
Steady Rental Income: The rental income from secondary suites can significantly contribute to mortgage payments or provide additional disposable income.
Market Demand: With housing demand high in many Ontario markets, secondary suites offer a solution to the rental property shortage.

Regulations and Requirements For Investing In Secondary Suites

Before getting started on your secondary suite project, it’s crucial to understand and comply with local regulations:

In Kawartha Lakes, secondary suites must conform to local zoning by-laws and the Ontario Building Code. Permits are required, and properties near natural hazards may need additional approvals.
Peterborough has recently approved changes allowing homeowners to add up to two secondary suites without rezoning. Parking requirements vary by location, with no additional spaces required in the downtown core.

Always consult with a local expert like Visture Property Group before proceeding with construction to ensure compliance with all regulations.

Adding a secondary suite to your property in Kawartha Lakes or Peterborough is more than just a home improvement project – it’s a strategic investment in your financial future. With the potential to generate monthly revenues ranging from $1,500 to over $2,300, secondary suites offer an attractive return on investment while contributing to the local housing supply.

Whether you choose a cozy basement apartment, a charming garden suite, or a practical above-garage unit, the key to success lies in thoughtful planning, quality construction, and attention to the features that today’s renters value most. By navigating the regulations carefully and creating a space that meets market demands, you can transform your property into a lucrative income-generating asset.

In the beautiful regions of Kawartha Lakes and Peterborough, secondary suites represent not just a trend, but a sustainable solution to housing needs and a golden opportunity for homeowners. It’s time to unlock the hidden potential of your property and embark on a rewarding journey into the world of secondary suite rentals.