Coach House ALERT for Oakville
As an area specialist, I have sold 1000’s of home in the Oak Park area. The coach house is a unique property within this area and the bylaws have changed.
There are 2 types of coach houses. Corner units have what is called “retreat” coach houses. The “retreat” coach house is a legally rentable unit that is a separate dwelling from the main house. Equipped with a kitchenette, you have sanitary and culinary use. Corner units with a legal parking pad are the ONLY legally rentable coach houses. As an example, if a stairway impedes on the parking pad, this unit is no longer legally rentable.
Now…let’s look at the inner units. There is no longer ANY human occupancy allowed. What I mean by this is the fact that there can be no overnight accommodation allowed. The inner coach house can ONLY be used as a studio or work space. Having said that, you cannot rent out or create income from inner units. These units are for personal use only.
WHAT DOES THIS MEAN FOR YOU IF YOU OWN AN INNER UNIT?
Corner homes will go up in value to a higher extent than the inner units.
WHAT CAN YOU DO?
You can sell now but be aware that you have to disclose that your coach house is not legally rentable.
Keep in mind, your coach house is no longer insurable. If you are currently renting and have a tenant or a family member who is staying within the coach house, you are opening a can of worms. If your insurance company finds out they can contact your lending institution and they could recall your mortgage.
WHAT CAN YOU DO IN THIS SITUATION?
- Inform your tenant right away! Don’t risk $30,000 of city penalties or insurance issues.
- Remove the kitchenette.
While the city is currently responding to complaints only, this will change.
WHAT DOES THIS MEAN FOR YOUR PROPERTY VALUE?
Your inner unit will still maintain a higher value than a detached home without a coach house (in the neighbourhood of $20,000 - $25,000 higher); however, if you own a corner property your value will be between $60,000 - $80,000 higher.