How to Turn Your Basement Into a Legal Rental Suite

Posted by Ken Richter on Tuesday, May 27th, 2025  12:48pm.

With Calgary’s growing population, housing demand, and updated zoning bylaws, many homeowners are looking to turn their basements into legal rental suites—and for good reason. A secondary suite can provide extra monthly income, boost your property value, and help address the city’s affordable housing shortage.

But before you start hanging drywall and picking paint colors, it’s essential to understand what this all entails. Here are some of the details, but as always, be sure to consult a lawyer before you declare yourself a "legal" basement suite landlord!

  1. Know the rules. In Calgary, a secondary suite refers to a self-contained living space within your home, such as a basement, that includes a separate entrance, a full kitchen and bathroom, and living and sleeping areas. Your suite needs to meet building code and safety standards, such as a window for fire escape, and independent heating and ventilation systems.

  2. Apply for the right permits. You can apply online through the City of Calgary’s Planning & Development portal. Expect to provide floor plans, fire separation details, and contractor info if applicable. The City of Calgary offers a Secondary Suite Registry—once your suite is approved and inspected, it gets listed publicly as a legal rental. This gives tenants peace of mind and protects you as the landlord.

  3. Renovate to code. Before you begin swinging a hammer, ensure that your plans for design actually meet City codes. Consider things like proper bathroom ventilation, fire-safe oven backing, soundproofing, and more. Consult with professionals to avoid bigger costs in the future!

  4. Consider if the return on investment (ROI) will be worth it in the end. The cost to build a legal basement suite in Calgary typically ranges from $40,000 to $100,000+, depending on size, condition, and finishes. You'll receive rental income, add to your property value, and get increased ta breaks, but make sure it all balances out in the end.

Turning your basement into a legal rental suite in Calgary is one of the smartest investments you can make—as long as you do it right. Following the city’s process protects you legally, ensures tenant safety, and helps your property work harder for you.

(Image via Canva)