Thinking about turning unused space into income in Whitchurch‑Stouffville? With 2024 zoning updates, many serviced properties can legally add one or more Additional Residential Units that support family needs and offset carrying costs. You want clear rules, realistic costs, and honest returns before you act. This guide breaks down what is allowed, what it costs, local rents, and simple examples so you can judge if an ARU fits your plan. Let’s dive in.
What changed in 2024
Stouffville updated its zoning in 2024 to align with Ontario’s Bill 23, which requires municipalities to allow up to three dwelling units on urban residential lots with municipal water and sewer. The Town’s amendment (By‑law 2024‑078‑ZO) permits both integrated ARUs inside the main home and ancillary ARUs in a detached garden or coach suite on fully serviced lands within the Stouffville settlement area. Review the Town’s overview of ARUs and where they apply on the official project page. Town ARU overview and Bill 23 details.
Properties within the Oak Ridges Moraine and Greenbelt have added limits. Some natural or core areas prohibit ARUs and countryside designations may cap the number and type of units. Always confirm your property’s servicing and designation with Town staff before planning.
Where ARUs are allowed
Bill 23’s three‑unit permission applies in the fully municipally serviced Stouffville Secondary Plan area. Outside serviced areas, rules are more restrictive and in some cases do not allow ARUs. Start with your property’s zoning and servicing status, then verify details with the Town’s Planning and Building departments. Town ARU overview
Local demand and rent context
Stouffville continues to grow, with limited rental stock and affordability pressures highlighted in local monitoring. The Town’s reporting notes higher average sale prices and a small supply of purpose‑built rentals, which supports steady demand for well‑designed suites. Town housing monitoring summary
For rents, use the CMHC Aurora–Newmarket–Whitchurch‑Stouffville area as a conservative baseline. Recent figures show approximate averages of about $1,500 to $1,700 for a one‑bedroom, $1,700 to $1,900 for a two‑bedroom, and $2,200 or more for some three‑bedroom units. Vacancy has often been below a 3 percent “healthy” threshold across much of York Region. Check the latest CMHC tables at time of planning. CMHC rental market tables
York Region also continues to invest in community housing in Stouffville, recognizing persistent rental demand. This underscores the role small ARUs can play in providing more market rental options. York Region community housing project
What it costs to build or convert
Every property is different, but current Ontario examples provide useful ranges:
- Basement or integrated suite conversion: about C$50,000 to C$150,000 depending on scope, egress, fire separations, and mechanical upgrades. Basement finish cost context
- Detached garden or coach suite: commonly C$180,000 to C$400,000+ “all in,” influenced by foundation choices, utility extensions, and site work. Garden suite cost context
- Soft costs to budget: design and engineering, surveys, permits, inspections, energy/HRV reviews, utility upgrades, and a contingency. A 10 to 25 percent allowance on top of construction is a reasonable planning start.
Will the numbers work?
Use simple, transparent math so you can test different scenarios:
- Gross annual rent = monthly rent × 12
- Operating expenses (rule of thumb) = 25% to 40% of gross rent
- Net Operating Income (NOI) = gross rent − operating expenses
- Simple cap rate = NOI ÷ total capital cost
- Cash‑on‑cash return = (NOI − annual debt service) ÷ cash invested
- Payback period = total build cost ÷ annual net cash flow
Example: basement conversion (illustrative)
- Assumptions: C$80,000 conversion cost, rent C$1,700 per month, expenses 30 percent of rent.
- Gross rent: C$20,400 per year. Expenses: C$6,120. NOI: C$14,280.
- Cap rate: 14,280 ÷ 80,000 = 17.85 percent. Simple payback: 80,000 ÷ 14,280 ≈ 5.6 years.
Notes: Returns look strong when you compare rent to the retrofit cost only. In practice, confirm financing terms, insurance, and any assessment change that could affect property taxes.
Example: detached garden suite (illustrative)
- Assumptions: total cost C$275,000, rent C$2,000 per month, expenses 30 percent. Borrow 80 percent at 5.0 percent over 25 years; approximate annual debt service C$15,900.
- Gross rent: C$24,000. Expenses: C$7,200. NOI: C$16,800.
- Cap rate: 16,800 ÷ 275,000 ≈ 6.1 percent. Cash flow after debt service: about C$900 per year. Cash‑on‑cash: 900 ÷ 55,000 ≈ 1.6 percent.
Notes: Financing cost and site work can make or break cash returns. If you secure lower build costs or more favorable rates, outcomes improve. If servicing is complex, expect higher totals and longer payback.
Key rules and approvals to expect
- Confirm eligibility: three‑unit permissions apply on fully serviced urban lots. Check zoning, lot coverage, setbacks, and accessory building rules. Town ARU overview
- Building Code considerations: adding units can change your building classification and trigger added fire and safety requirements when a home exceeds two units. Early code review is essential. Ontario Building Code reference
- Permits and reviews: building permit, fire safety (egress, separations, alarms), plumbing and electrical, and potential Committee of Adjustment if you need minor variances.
- Parking: Bill 23 limits municipalities to at most one parking space per additional unit, but design and driveway rules still apply. Bill 23 summary
- Short‑term rentals: if you plan STR use, verify local licensing and limits before you build. Some places restrict STRs to principal residences. Local STR regulation overview
Risks and trade‑offs to weigh
- Costs can climb: hidden structural issues, servicing upgrades, or environmental constraints can add material dollars.
- Code upgrades: more than two units may change classification and requirements. Ontario Building Code reference
- Taxes and insurance: significant upgrades often trigger reassessment and added coverage requirements. Property tax context
- Servicing and location limits: outside municipally serviced areas or within protected designations, permissions are restricted. Town ARU overview
Who an ARU can serve
- You want multi‑generational living with privacy and safety.
- You plan to downsize later and prefer rental income now to offset carrying costs.
- You hold a long‑term investment mindset and value optionality when selling.
A well‑planned ARU can add flexibility and a new income stream. The best outcomes come from disciplined budgeting, early code checks, and clear rental goals.
Ready to map the options on your property or weigh ARU potential in a purchase or sale? Reach out to Lisa Colalillo to model rents, costs, timelines, and how an ARU could support your broader real estate strategy.
FAQs
How many ARUs can I add on a serviced Stouffville lot?
- On fully municipally serviced urban lots, Bill 23 permits up to three units in total, either within the main dwelling or a mix of two inside plus one detached, subject to zoning and code. Bill 23 overview
Where are ARUs not permitted in Whitchurch‑Stouffville?
- Properties outside the serviced settlement area and some Oak Ridges Moraine or Greenbelt designations face stricter limits or prohibitions, so confirm your property’s status with the Town. Town ARU overview
What are typical ARU build or conversion costs?
- Recent Ontario examples: C$50,000 to C$150,000 for a basement conversion and C$180,000 to C$400,000+ for a detached garden suite, plus 10–25 percent soft costs. Basement costs and garden suite costs
What rents should I use for planning in Stouffville?
- CMHC’s Aurora–Newmarket–Whitchurch‑Stouffville data shows recent averages near $1,500–$1,700 for one‑bedrooms and $1,700–$1,900 for two‑bedrooms; verify current figures before you build. CMHC tables
Will my property taxes increase after adding an ARU?
- Significant improvements can trigger reassessment, which may increase taxes based on MPAC’s valuation and local rates; budget for this potential change. Property tax context
Do parking rules change for ARUs in Stouffville?
- Bill 23 limits parking requirements to a maximum of one space per additional unit, though driveway layout and design standards still apply locally. Bill 23 overview
