Unlicensed Multiplex Properties 

The rules and regulations regarding converted houses with multiple self-contained units are complicated to begin with and can change without you being made aware. That’s why we think it is of incredible importance that you are aware of what can happen if the city discovers that your property was converted without a permit.

What’s a multiplex / multi-residential property?

As of recently, the city of Toronto has discontinued the use of the term “converted house with multiple self-contained units” and now identifies those types of dwellings as multiplex (or duplexes, triplexes, etc.). Now, multiplex, or multi-residential properties refer to a property type that contains more than one rental property.

A single-family home that has been converted to a multi-residential rental property and a purpose-built multiplex are now identified as a single property type, further segmented by the number of units.

Why does it matter if my property is a multiplex?

It’s important to ensure your multiplex was converted or built legally and has the papers to prove it. The city requires property investors to acquire permits and often pay development charges of up to $70,000 per additional unit for purpose-built or converted multiplexes. Investors are expected to have proof of their permits and payments in the event the city requests them. Without the paperwork, you might be asked to pay the development fee and make updates to your building, such as adding sprinklers or widening a staircase.

How can I avoid or prepare for a multiplex audit?

First, assess your property. How many rental units are on the property? Was the property built with multiple rental units or were they added? Were the property permits filed at the time of building or additions? Were the proper development fees paid to the city? Then, once you understand the situation, you can start to get your paperwork ready for the impending audit. It’s not only required of you to build your multiplex legally but for you to prove you built it legally.

Is there help for landlords with multiplex properties?

Yes. Our team specializes in the assessment, management, and renovations of boutique residential rental property. We are currently offering free assessments and consultations to owners of multiplex rental properties throughout the GTA. We want to help you avoid legal issues or fees from the city. We believe in a Toronto where landlords can offer renters comfortable, safe, and unique homes. And we want to empower you to do that.

For more information, contact us.