FImagine turning your backyard into a stylish, fully functional living space—a place for aging parents, grown children, or even rental income. That’s the magic of a garden suite (also known as garden houses, granny flats, backyard houses, and coach houses): a standalone home built right on your property, offering privacy and versatility. These compact yet complete dwellings come with everything a person needs—kitchen, bathroom, bedroom, and living space—designed to maximize comfort in a small footprint. 

Thanks to Toronto’s new bylaws, creating one is easier than ever. At Milman Design Build, we specialize in making these backyard dreams a reality. Contact us for a free estimate and discover how a garden suite can transform your property.

What Are Garden Suites?

A garden suite is a little, independent house that is situated in an existing property’s backyard. Garden suites can be constructed on any residential lot with sufficient space, unlike laneway houses, which need access to a laneway. These completely self-contained apartments have a living room, bedroom, bathroom, and kitchen.

Garden suites are allowed on residential properties in Toronto that satisfy certain requirements, including lot size, setbacks, and height restrictions. These apartments are supported under the city’s amended ordinances, which aim to preserve local identity while expanding housing options.

Garden suites solve housing issues by delivering rental income opportunities, inexpensive housing options, and private multigenerational living. They are a creative and adaptable approach to improve  Toronto’s urban living.

Benefits of Garden Suites

Additional Rental Income

Garden suites offer a unique opportunity to generate significant rental income without leaving your property. In Toronto, a well-designed garden suite can command monthly rents between $5,000 and $7,000, depending on location and size. This steady income stream not only helps offset construction costs but also boosts financial stability, making it an attractive option for homeowners.

Property Value Increase

Adding a garden suite can significantly enhance your property’s market value. In the short term, homeowners often see a 20–30% increase in property worth, which translates to $240,000–$360,000 for a $1.2 million home. Over time, as housing demand grows and garden suites become more desirable, the long-term appreciation could exceed these initial gains.

Versatility in Use

Garden suites are more than just rental units—they offer flexible living arrangements tailored to your needs. They’re perfect for multi-generational families, providing elderly parents or grown children with independent living spaces while staying close. They also serve as home offices, guest accommodations, or even creative studios, adding functional space to your property.

Sustainability

Many garden suites incorporate eco-friendly designs, making them a greener choice for modern living. Energy-efficient appliances, solar panels, and sustainable building materials reduce environmental impact while cutting utility costs. These features benefit the planet and increase the appeal and value of your garden suite.

With their potential to generate income, enhance property value, and serve diverse purposes, garden suites are a smart investment for forward-thinking homeowners.

Cost Breakdown for Building a Garden Suite

Building a garden suite is an exciting investment, but understanding the associated costs is crucial for successful planning. Here’s a detailed breakdown of the typical expenses of creating a mid-sized, high-quality garden suite (500–800 sq. ft.). (These figures are broad estimates and may vary due to numerous factors)

1. Design & Permits

Proper planning ensures your garden suite complies with city regulations and meets your vision. Architectural Design: $5,000–$15,000 for detailed plans tailored to your lot and needs.

• Structural Engineering: $2,000–$5,000 to guarantee a safe, stable structure.
• Permits (zoning and building): $3,000–$6,000 to navigate legal requirements.
• Surveying: $1,500–$3,000 to confirm property boundaries and compliance.
• Total: $11,500–$29,000.

2. Site Preparation

Before construction begins, your lot must be ready to accommodate a garden suite.

• Demolition/Excavation: $5,000–$15,000 for clearing and preparing the site.
• Grading and Foundation Work: $10,000–$30,000 to create a solid base.
• Utility Upgrades: $10,000–$25,000 for water, sewer, and electrical connections.
• Tree Removal/Protection: $1,000–$10,000 if landscaping adjustments are needed.
• Total: $26,000–$80,000.

3. Construction

This is the most significant part of your budget, covering labor and materials for the structure.

• Structure (framing, roofing, siding): $80,000–$150,000 for a durable build.
• Interior Finishes (flooring, drywall, paint): $20,000–$50,000 to enhance the interior.
• Windows and Doors: $10,000–$20,000 for energy-efficient, quality fittings.
• Plumbing and Electrical: $15,000–$30,000 for fully functional utilities.
• HVAC Systems: $10,000–$20,000 for heating, cooling, and ventilation.
• Total: $135,000–$270,000.

4. Landscaping

After construction, landscaping adds curb appeal and usability to your backyard.

• Driveway/Pathways: $5,000–$15,000 for smooth access.
• Fencing and Privacy Screens: $3,000–$10,000 to maintain privacy.
• Garden/Lawn Restoration: $2,000–$10,000 to beautify the space.
• Total: $10,000–$35,000.

5. Contingency

Unexpected expenses are common in construction. Setting aside 10–20% of your budget is essential.

• Unforeseen Costs: $20,000–$50,000 to cover delays, material changes, or additional work.

Estimated Total Costs

For a mid-sized, high-quality garden suite, the total cost typically ranges from $202,500 to $464,000. Smaller, simpler builds will cost less, while high-end finishes or luxury materials will increase costs.

Factors Influencing Final Costs

• Design Complexity: Unique designs or custom features raise expenses.
• Material Choices: Sustainable or premium materials add to the budget but increase long-term value.
• Labor Rates: Local labor costs can vary depending on availability and project scope.
• Site Conditions: Challenging lots requiring significant preparation may lead to higher costs.

By understanding these expenses, homeowners can plan their budgets effectively and avoid surprises. At Milman Design Build, we provide detailed estimates and expert guidance to help you create your dream garden suite with confidence.

Key Regulations and Permits

Building a garden suite in Toronto involves adhering to specific regulations and obtaining the necessary permits. Here’s what you need to know about Toronto’s garden suite bylaw and how to navigate the permitting process effectively.

Toronto’s Garden Suite Bylaw

The City of Toronto introduced new bylaws allowing garden suites on residential properties to increase housing options. These bylaws establish rules for size, height, setbacks, and access to ensure that garden suites integrate harmoniously into existing neighborhoods. Key highlights include:

• Garden suites are permitted on most residential lots, even without a laneway.
• Maximum height and size depend on lot dimensions and proximity to property lines.
• Certain heritage properties or lots with environmental constraints may have additional requirements.

Step-by-Step Guide to Obtaining Permits

1. Zoning Approval

   • Review Zoning Requirements: Confirm your property qualifies under the garden suite bylaw. Consider factors like lot size, setbacks, and height restrictions.
   • Prepare Preliminary Plans: Work with an architect or designer to create a concept that aligns with zoning rules.
   • Submit for Approval: Submit your plans to the city’s zoning department for review. Adjustments may be required before approval.

2. Building Permits

   • Detailed Plans: Once zoning approval is obtained, prepare detailed construction drawings, including architectural, structural, and utility plans.
   • Submit Application: Apply for a building permit through the City of Toronto. This involves fees and a review process to ensure compliance with the Ontario Building Code.
   • Inspection Schedule: Once approved, follow the city’s schedule for inspections during construction to maintain compliance.

Zoning Compliance Tips and Common Pitfalls to Avoid

• Understand Setbacks: Garden suites must maintain specific distances from property lines, often varying based on lot size and location.
• Consider Access Requirements: Ensure there’s a clear path from the street to the suite for emergency and utility access.
• Tree Protection: If there are trees on or near your property, a Tree Protection Plan may be required. Failing to comply can delay approval.
• Plan for Utility Upgrades: Verify if additional sewer, water, or electrical capacity is needed to support the suite.
• Heritage Designations: If your property is in a heritage district, additional approvals may be required.

Navigating Toronto’s permitting process can feel complex, but it ensures your garden suite complies with legal and safety standards. At Milman Design Build, we simplify the process by managing permits and approvals on your behalf, saving you time and stress. Let us guide you every step of the way.

FAQs About Garden Suites

Garden suites are an innovative housing solution, but they come with unique rules and considerations. Here are answers to some of the most common questions.

1: Can I use a garden suite for short-term rentals?

Yes, but there are specific regulations to follow in Toronto. Short-term rentals (STR) are only allowed if the property is your principal residence. This means you must live on the property, either in the main house or the garden suite, and can only rent out one unit on a short-term basis.

• Licensing Requirements: You must obtain a Short-Term Rental Operator’s License from the city, which includes an annual fee of $53.50 and a $1/night municipal accommodation tax for each stay.
• Rental Limits: Short-term rentals are capped at 180 nights per year if you’re not living on-site during the rental period.
• Alternative Options: For greater flexibility and fewer restrictions, consider using the suite for long-term rentals, which are not subject to STR rules.

2: What’s the maximum size for a garden suite?

The maximum size depends on the dimensions of your lot and the city’s zoning bylaws. Generally:

• Square Footage: Garden suites typically range from 500–800 sq. ft., but larger lots may allow bigger units.
• Height Restrictions: Most garden suites are limited to a maximum of two stories or a specific height to maintain neighborhood aesthetics.
• Setbacks: Minimum distances must be maintained from property lines, which vary depending on your lot’s location and size.

Working with professionals ensures your garden suite meets all size and setback requirements.

3: How long does it take to build one?

The timeline for a garden suite depends on factors like design complexity, permitting, and construction. Here’s a typical breakdown:

• Design and Permits: 3–6 months to finalize plans and secure necessary approvals.
• Construction: 6–12 months, depending on the size and scope of the project.
  In total, expect the process to take 9–18 months from start to finish.

4: Can I finance my garden suite?

Yes, financing options are available to make building a garden suite more accessible. Common methods include:

• Home Equity Loans: Use the equity in your existing property to fund construction.
• Refinancing: Adjust your mortgage to include the cost of the garden suite.
• Construction Loans: Specific loans designed for new builds can cover material and labor costs.
• Budgeting Tips: Factor in all costs, including permits, utility upgrades, and contingencies, to avoid unexpected financial strain.

Garden suites are an investment, but the right financial planning ensures they fit your budget and future goals.

For any additional questions or personalized advice, reach out to Milman Design Build. Our team is here to simplify the process and bring your backyard vision to life.

Are Garden Suites Right for You?

Deciding whether to build a garden suite involves weighing various factors to ensure it aligns with your property and goals. Here’s what to consider before taking the plunge.

Lot Size, Zoning Restrictions, and Proximity to Utilities

• Lot Size: Sufficient backyard space is essential. Your lot needs to accommodate the suite while adhering to setback requirements and leaving room for landscaping or access pathways.
• Zoning Restrictions: Verify whether your property qualifies under Toronto’s garden suite bylaws. Certain neighborhoods or heritage properties may have additional regulations to navigate.
• Utility Access: The cost and feasibility of connecting sewer, water, and electricity can vary based on your proximity to existing infrastructure. Properties with easy utility access reduce preparation costs.

Long-Term Rental Demand vs. Personal Use Preferences

• Rental Income Potential: If you’re building a garden suite primarily as a rental unit, research the local market to estimate demand and rental rates. Areas near transit, schools, or amenities typically yield higher returns.
• Personal Use: For multi-generational families, garden suites provide privacy while keeping loved ones nearby. Alternatively, they can serve as home offices, guest accommodations, or even creative spaces.
• Hybrid Use: Some homeowners design garden suites for flexible use, renting them out initially and transitioning to personal use later as needs evolve.

Pros and Cons Tailored to Homeowners’ Goals

Pros

• Increased Property Value: Boost your home’s market appeal and potential resale price.
• Rental Income: Generate consistent revenue to offset construction costs.
• Multi-Generational Living: Provide independent spaces for family members while staying close.
• Creative Solutions: Use the suite for hobbies, remote work, or welcoming guests.

Cons

• Upfront Costs: Construction expenses can range from $200,000–$500,000, requiring careful financial planning.
• Regulations and Permits: Navigating zoning and building requirements can be time-consuming.
• Maintenance: Adding another structure to your property increases long-term upkeep responsibilities.

Garden suites offer a blend of flexibility, value, and utility, but they aren’t a one-size-fits-all solution. By assessing your property’s suitability and your personal goals, you can determine if this investment is the right fit for your future. For tailored guidance, reach out to Milman Design Build and let us help you decide if a garden suite is your next big move.

Expert Tips for Maximizing Value

When building a garden suite, thoughtful planning, and strategic decisions can significantly enhance its functionality, appeal, and long-term value. Here are expert tips to ensure your investment pays off.

Choose the Right Design for Your Property and Neighborhood

• Tailored Designs: Opt for a design that complements your home and neighborhood’s aesthetics. A cohesive look not only enhances curb appeal but also integrates seamlessly with the surrounding area.
• Functional Layouts: Prioritize layouts that maximize space efficiency, offering versatile use for renters, family members, or guests. Features like open-concept living areas or multi-purpose rooms add flexibility.
• Future-Proofing: Anticipate future needs, such as accessibility features or convertible spaces, to cater to changing lifestyles and demographics.

Prioritize Quality Materials for Durability and Resale Value

• Durable Materials: Invest in high-quality, weather-resistant materials for both the exterior and interior. Durable options reduce maintenance costs and extend the lifespan of your garden suite.
• Timeless Finishes: Choose finishes that blend style with longevity, such as hardwood floors or quartz countertops. These details not only appeal to renters but also boost resale value.
• Energy Efficiency: Select energy-efficient windows, insulation, and appliances to reduce operational costs while appealing to eco-conscious tenants or buyers.

Include Sustainable Features

• Solar Panels: Installing solar panels reduces energy costs and positions your garden suite as a modern, sustainable option in the rental market.
• Water-Saving Fixtures: Incorporate low-flow faucets, dual-flush toilets, and rainwater collection systems to conserve resources and lower utility bills.
• Green Roofs and Landscaping: Green roofs improve insulation and help manage stormwater, while native landscaping enhances aesthetics and requires minimal maintenance.

Conclusion

Garden suites represent a forward-thinking solution for homeowners in Toronto, offering a blend of affordability, versatility, and long-term value. While the costs of building one can vary depending on design, materials, and site conditions, the benefits—ranging from additional rental income and increased property value to sustainable and multi-generational living options—make them a worthwhile investment.

The process, from securing permits to completing construction, requires careful planning and expert guidance to ensure success. With the right approach, your backyard can be transformed into a stylish, functional, and valuable addition to your property.

If you’re ready to explore the possibilities of building a garden suite, Milman Design Build is here to help. Our team specializes in creating customized solutions tailored to your unique needs and property. Contact us today for a personalized consultation and take the first step toward realizing your vision.