People living in cities can now afford to live in Laneway houses because of the increased population density. Additionally, Laneway houses offer a convenient method of getting to work via transit. Renting out your backyard can be convenient and a great way to make more money passively from your property. However, there are also some drawbacks to renting out your backyard.
There are currently three Canadian cities that are able to build a laneway house: Vancouver, Toronto, and Calgary, according to this Simplii Financial article (no affiliation). The Vancouver Laneway House scene has been leading in Canada since 2009. This year, Toronto enacted a plan to create laneway houses. Apparently Laneway houses don’t regulate short-term rentals in Calgary, where they have existed for a few years.
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In What Way Do Laneway Houses Differ?
Whenever I mention laneway houses to people who aren’t from Vancouver, their faces usually turn confused.
Laneways houses are sometimes referred to as ‘coach houses’. It is like having an auxiliary home behind your main residence. The auxiliary home is independent of the main residence and is considered a second suite. Alleyway houses include a full kitchen, a washer and dryer, and use the garage space as living space.
A laneway house may have a garage (which is often kept for landlord and owner use), but some laneway houses have no garage at all, and the living space within the laneway house is more.
My experience is that laneway houses range from 500 square feet for 1 bedroom units to more than 1000 square feet for 2 bedroom units. People often build laneways as part of their new builds, while others convert their existing garages. La laneway house has a door that leads into the back lane from the front door.
Laneway House – Is It Possible To Sell
The laneway house can’t be put up for sale just yet, but there have been talks about parcelling out your land and selling it.
As a result, laneway houses cannot be sold at this time.
The Advantages of Laneway Homes
Rentals of laneway houses have some advantages, including proximity if dealing with a property issue. A faulty stove, leaky toilet, or trouble with the heating can easily be addressed by just walking a few steps.
Security Additions
A person keeps an eye on your home automatically due to the close proximity (and vice versa). You have someone in your household to watch over your house if there are any security issues while you’re away for a few days or a week.
Extra Light
Renters of laneway houses are more likely to be exposed to natural light than tenants of basement apartments. In this case, it costs more to rent a laneway house than to rent a basement suite (and it will also result in higher rental income from renting a laneway house).
The Disadvantages of Laneway Housing
Building a laneway house, also known as a Building a granny flat, comes with a few cons.
Laneway House Project – Long Process
The process of building a laneway house can be quite lengthy, at least in Vancouver. City inspectors must periodically check if the building is compliant with building codes and approve your permit. The housing regulations for laneway properties are extraordinarily stringent (such as the requirement to build a balcony or patio space on the ground floor) and arduous.
Inprivatization
Privacy obviously poses a problem. If the blinds are not drawn, the tenants will be able to see you, so you’ll want tenants who are quiet and prefer to be private. If you live close to your tenants, make sure you screen them very well. I noticed one thing about laneway houses designed by designers who know what they’re doing: there’s no window facing the main house.