Single Family Dwelling to Fourplex Construction in Toronto

Maximize Your Property Value with BVM Contracting

Are you a homeowner, multi-generational family, or real estate investor in Toronto looking to optimize your property? Converting a single-family dwelling into a fourplex is a smart way to boost rental income and property value for a property. At BVM Contracting, we specialize in multi-unit conversions that meet Toronto’s growing housing demands while helping you maximize your investment. Learn more about fourplexes in Toronto below and if you have any additional questions that we didn’t cover please feel free to reach out below!

Why Convert Your Single-Family Dwelling into a Fourplex?

Generate Multiple Streams of Rental Income

Converting your home into a fourplex allows you to generate rental income from multiple units. Whether you rent out all four units or live in one while renting out the others, this type of project provides ample cashflow and return on investment.

Increase Your Property’s Market Value

A well-executed conversion can significantly increase the value of your property. By adding extra self-contained units, you make your property more attractive to potential buyers and investors looking for turnkey multi-family homes in Toronto.

Adapt to Toronto’s Changing Real Estate Market

With affordable and family-oriented housing on the rise in Toronto, multi-unit properties are in high demand. Converting your property into a fourplex is a great condo alternative and can allow larger families to rent individual units. More people and families are getting priced out of buying homes so giving families a 2 or 3-bedroom option versus a 1 bedroom or 1 + den option is very lucrative and supports the middle class in Toronto. This type of housing helps provide crucial housing for the “missing middle” in Toronto.

Why Choose BVM Contracting for Your Fourplex construction project?

With decades of experience in Toronto’s real estate and construction industry, BVM Contracting is your trusted partner for evaluating, designing, and executing a fourplex construction project. Having renovation, home addition, new home building, and multi-unit experience in Toronto, we are the unbiased experts who will give you the advice you need to evaluate if this type of project is the right one for you and your property.

Key Considerations for a Fourplex Conversion in Toronto

Zoning and Bylaw Compliance

In Toronto, every residentially-zoned property in Toronto is allowed to add up to 4 units onto a single property. There is even the option on some properties to construct a fourplex AND an accessory dwelling unit to bring the number of units up to 5. The ability to construct a fourplex is still subject to the same zoning and building code constraints as any other project though so it is important to get a thorough review of your property’s zoning constraints to see what is possible on the property before investing too much time and effort. BVM Contracting helps complete zoning and property analyses throughout Toronto so if you would like to understand your properties options please reach out! Even if you are not able to build a fourplex due to site constraints or financial constraints we will work with you to determine what project works best for your needs.

Design and Layout Adjustments

Depending on your budget for construction you can create a very cost-effective multi-unit arrangement or invest a bit more to make the units more livable and marketable. We can work with you and your architectural team to adjust the design and figure out the cost implications of those changes to fit your target demographic and maximize rental value for each suite.

Upgrading Utility Systems

Converting a home into a fourplex requires upgraded plumbing, electrical, and HVAC systems. We ensure that these essential systems are modified to handle the demands of four separate units while adhering to building codes.

Calculating Return on Investment (ROI) and Financing your Fourplex

Converting to a fourplex is a significant investment. We help you evaluate potential rental income, design and permitting costs, construction costs, and increased property value, providing a clear ROI analysis so you can make an informed decision. Very early on in the process of determining if a fourplex (or any property investment) is feasible for your property, we will recommend getting in contact with a competent financing team to ensure that you have the proper foundation to support such a large investment. We partner with financing teams who specialize in multi-unit investment projects to run the numbers and ensure that your project will have the financing it needs to get completed.

Types of Fourplex Conversion Projects

Existing Home Conversions

Sometimes if you have a large enough home with already-existing levels you may be able to work within the existing canvas of your home to create four units! We can evaluate your home to determine if this is possible. Usually, homes with 2 or 3 storey arrangements are the best suited for this type of multi-unit conversion. Working within the existing home is usually the most cost-effective way to create a multi-unit set-up.

Utilizing existing structure plus home addition

If your home is sound structurally and you want to find a way to save some money on your multi-unit conversion project this would be a good option. You can utilize the existing layout to create 2-3 units, then complete a home addition to the existing structure to expand the amount of space for the additional units. Sometimes this comes in the form of an additional level or it can also be an extension to the front, side, or back of the existing home. We can evaluate the structural integrity of your existing home to allow you to make the most informed decision about adding onto the existing home.

New Construction (otherwise known as infill construction)

If the above two options aren’t feasible or you would like to start with a blank canvas, the new home construction route is the best option. You also get the peace of mind knowing that everything is new and shiny, which will make the operation and maintenance of the home way easier over time. This option usually comes with the steepest price tag though, which is discussed below!

Cost of Converting a Single-Family Home into a Fourplex

The cost of converting a single-family dwelling into a fourplex in Toronto can range wildly depending on which of the three options you choose from above. If you are utilizing the existing layout of the home you can expect to be in the $130-$180 per square foot range (of finished space, including basements), for the home addition option it will be $350-$400 per square foot for the addition portion + $130-$180 per square foot for the areas that are existing. For a new home construction project you can expect a range of somewhere between $340-$380 per square foot of finished space (including basements). We don’t agree with or like giving people costs per anything (it leaves a lot left on the table for interpretation and is usually not standardized across all builders) but realize it is a necessary evil in the digital age. If you would like to get an actual budget cost we would be happy to schedule a free, no-obligation consultation with you to set-up a representative budget for your specific project.

It is also important to consider the costs of the design and permitting, which we can also help you with. Utilizing our vetted list of architectural partners we can easily get you the numbers you need to evaluate the soft costs for your fourplex construction project.

Frequently Asked Questions (FAQs) About Fourplex Conversions in Toronto

What is a fourplex?

A fourplex is a building that contains four separate and self-contained units that can be inhabited by different groups of people.

Do I need special permits to convert my home into a fourplex in Toronto?

Yes, in most cases you will need zoning variances and building permits. BVM Contracting helps with the entire process from concept to completion and will determine if your property is suitable for conversion to a fourplex. With our vetted list of of architects and in-house estimation and procurement team we are able to give our clients a very representative view of what is possible on their property and how much it is going to cost before they invest any money into the project.

How long will it take to get permits for my fourplex project?

This question is difficult to give an exact answer due to all of the variables that are present during the design and planning of a fourplex project. Your project will likely end up at the Committee of Adjustment, which will add some time to the entire process. We conservatively estimate the design and permitting process to take between 6-12 months. The more aggressive you are with the design and triggering variances the longer your project will take to get a permit. If you can somehow build a fourplex on your property without triggering any variances it is possible to be closer to the 6 month duration

How long does a fourplex conversion Project take?

The timeline varies depending on the size and complexity of the project. On average, it takes between 8 to 12 months from the beginning of construction to the closing of the permits to convert a single family dwelling into a fourplex

Is a fourplex conversion a good investment?

Yes, converting a single-family home into a fourplex can significantly increase your rental income and property value, making it an excellent option for real estate investors, home owners, and multi-generational families in Toronto.

Can I live in one unit and rent out the others?

Yes, many homeowners choose to live in one of the units while renting out the other three, which can help offset mortgage costs or generate additional income.

What utility upgrades are necessary for a fourplex conversion?

A fourplex conversion typically requires upgraded plumbing, electrical, and HVAC systems. We ensure that all utility upgrades are made to meet the building code along with the needs of four independent units. It is recommended to separate all of the utilities for a fourplex to ensure that each of the units is separately metered. This comes with an additional upfront cost but will save a lot of frustration in the future!

Does a fourplex qualify for the CMHC MLI Select Program?

No, unfortunately the MLI Select Program only covers multi-unit projects of 5 units or more. 

Can I Use my existing home to create a fourplex? 

Potentially! Depending on where the existing home is located on the property, the quality of the existing structural members (foundation, footings, exterior walls, joists, roof, etc.) you may be able to integrate all or a portion of your existing home into the design of your fourplex. We have to evaluate these types of projects on a case-by-case basis and can work with you to determine if your existing home can and should be utilized. Please reach out to schedule a consultation for your property!

Do you recommend doing a COMPLETELY new fourplex or utilizing the existing home to create a fourplex?

We evaluate this question based on a variety of factors which include the budget of our client, the structural integrity of the existing building, zoning by-laws, and building code constraints. Most times it will be more cost-effective to build onto an existing structure but sometimes the structure is not configured well enough to make it worthwhile to salvage the existing structure.

A good example of this is when you need to underpin an existing basement to create a unit in the basement, the cost of underpinning is around the same cost as creating a completely new foundation most times so for a little bit of a premium (with the additional demolition and site services needed for a new home) it would make sense in this case to build a new structure instead of keeping the existing one.

How can I finance the construction of a fourplex in toronto?

We work with reputable local lenders who specialize in financing multi-family constructions. Our network of financing specialists can guide you through the best options available to you.

What are the benefits of a Fourplex?

This arrangement not only provides affordable rental options but also accommodates families seeking multi-generational living, all while allowing homeowners or real estate investors to supplement their mortgage through the additional rental income generated from the suites that are rented out long-term. This type of arrangement is currently the most density you can get on any residential property in Toronto (except for any property located on a major street, there is additional density you can create from owning a property on a major street in Toronto).

Can I use one of my units as a short-term rental?

Yes, as long as you occupy one of the units as a primary residence, you will be able to apply to have one of your units operate as a short-term rental in Toronto.

Do I have to build a new home to create a fourplex?

Not necessarily! If your existing home’s layout is set-up well enough to allow for 4 separate units to be created you may be able to utilize the existing structure to create the fourplex. If your current home is only well-suited for a duplex or triplex that is fine as well, the savings you will get by utilizing the existing home might offset the reduction in rental income by not adding 5 separate units.

Is parking required when building a Fourplex?

Per the City of Toronto Website, as of February 3, 2022, duplexes, triplexes, or fourplexes are not required to provide parking spaces on the property.

Are there development charges for constructing a fourplex?

Per the City of Toronto Website, as long as the multiplex is limited to 4 units (i.e. a fourplex) development charges do not apply. This does not include the garden suite, which also would be exempt from development charges.

Use Cases for Building a Fourplex in Toronto

Long-term Rentals

Combat the housing crisis as a citizen developer in Toronto by providing additional rental options for a diverse range of tenants or family members.

Multi-Generational Families

Design homes that allow your family members to live closely while maintaining their independence, fostering a supportive and convenient living arrangement

Subsidizing Mortgage Costs

Utilize rental income from the fourplex to alleviate financial pressures, making homeownership more feasible and sustainable.

Short-Term Rentals

Tap into the lucrative short-term rental market, using one of the individual units to maximize your property’s earning potential through a short-term rental in Toronto.

Get Started Today!

Are you ready to transform your property with a Fourplex in Toronto? Contact BVM Contracting today for a free, no-obligation consultation. Our family-run, expert team is eager to help you design and build a space that meets your needs and exceeds your expectations!

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About BVM Contracting

BVM Contracting is a family-run residential construction company in Toronto, specializing in substantial home renovation and home-building projects. This includes home additions, home extensions, custom home building, new home construction (including infill developments), accessory dwelling unit construction (including laneway suites and garden suites), single-family to multi-unit development projects (including duplexes, triplexes, fourplexes, and fourplex + ADU), legal basement apartments, and full interior renovations. We offer the most comprehensive (and free) pre-construction planning services in Toronto. We walk you through the entire process from concept to completion to make sure your project is delivered on time and on budget!