Basement Suite Development Costs in Calgary
Estimated Cost
Breakdown
Kitchens cost 15-25% of the budget ($9,000-$37,000); Bathrooms are 10-20% ($6,000-$30,000); Utilities are 15% ($9,000-$22,000); Windows/Exits add 0-20% ($0-$30,000).
Bedrooms and Living Areas cost 5-10% ($3,000-$15,000), with the remainder of the suite costing 5-10% ($3,000-$15,000).
A $65,000 - $150,000 basement suite development in Calgary will cost between $80-100 per square foot.
Introduction
Developing a legal basement suite is a shrewd investment for homeowners in Calgary. A legal basement suite increases your property’s value, creates a secondary income stream, and assists to provide additional housing in our communities. However, understanding the basement suite development cost is crucial to the success of your project and investment.
As stated, a secondary suite is an investment, and like all investments they should be carefully planned, and budgeted. This article outlines the costs involved, the benefits of a legal suite, and how Notorious Suites can help you maximize your property’s potential.
Understanding
Development Costs
The basement development cost in Calgary depends on several factors, including existing site conditions, the size of the suite, the finishes you choose, and any additional features. On average, a legal basement suite development can range from $65,000 to $150,000. This cost includes permits, labor, materials, engineering, and any inspections required throughout the process.
Identifying the goals of your suite project from outset is critical to keep costs from climbing and minimizes dreadful scope creep from being incurred. The number of bedrooms a suite will have will dictate how many tenants may live in the space. Shared or separate laundry is a consideration that can impact cost and quality of living. These are simply two examples of goal identification in the planning / design phase of a project.
Notorious Suites has the experience to review the different avenues a project can encounter and ensures that a homeowner has the information required to make the best decision for their investment. Confronting these factors from a projects inception ensures it will stay on budget, without delay.
Factors
Influencing Basement Development Pricing
When considering the basement development price in Calgary, it’s important to think about long-term benefits. A well-designed basement suite can significantly boost your property’s value and provide steady rental income. Factors like materials, layout complexity, and legal requirements all play a role in determining the final price of your basement development project.
One of the most important factors that will influence the cost of your basement suite will be the contractor you choose to execute the work. Hiring a qualified, licensed, and experienced contractor may come at a higher upfront cost, but will minimize cost overruns, schedule delays, and liability challenges further down the road for your legal basement suite.
It is important to be mindful of the risks of selecting a contractor based solely on the lowest bid. Quality workmanship, adherence to building codes, and reliable project management are crucial for the safety and legality of your basement suite. Thoroughly vet potential contractors by checking their credentials, references, and past projects to ensure you make an informed decision that safeguards your investment.
The building code requirements are a significant cost to every legal suite project. The Alberta Building Code has strict requirements regarding separate heating sources , and smoke/fire separations. These requirements lead to a safer living space, and higher quality of life. Additionally, older homes may require plumbing and electrical upgrades as they were not built with todays’ demands in mind.
Utilities
These upgrades include separate furnace, or HRV with baseboard heating, potentially a larger electrical panel, or an upgraded sanitary drainage system. Dependent on existing conditions, the modifications required to meet the needs of the code, and your project can range from $9,000 to $22,000. This scope can typically be 15% of a project's total budget.
Kitchens
Kitchens are one of the largest investments in any home improvement project, and a basement suite is no different. Whether you choose to have a full kitchen or simply a kitchenette, the size and selections of materials and finishes will have the largest impact. The cost of a basement suite kitchen starts at $9,000 and can go up drastically from there. This cost would not include appliances, or any of the plumbing and electrical rough-ins required to bring the kitchen to life.
Dependent on the design, layout and existing conditions, it is not uncommon for the existing slab to be cut/chipped to allow for new drainage installation below grade. The kitchen can be 15-25% of a project’s total budget.
Bathrooms
Like kitchens, bathrooms are another high-ticket scope on a renovation project. Toilet and bathtub / shower drainage must be accommodated. In many new construction homes (Year 2000 and up), the bathroom drainage rough-ins are already in place that can be taken advantage of to reduce cost. Ultimately, the finishes selected will determine the overall cost of the bathroom addition, but you can expect this scope to be approximately 10-20% of the project’s total budget, at minimum cost of $6,000.
Egress Windows and
Exits
If your project requires a below grade separate entrance and/or egress windows to be added, this can a notable cost addition. The cost of a below grade separate entrance can range from $7,000 to $20,000 for excavation, concrete cutting, labor, materials along with engineering of the stairs, retaining walls, covered entry (conditionally required per site conditions).
The cost of an egress window can also vary, but a budget of $1,500-$3,000 per egress window is common. In new communities, builders are constructing homes to include a separate entrance and egress windows, eliminating this cost from the suite budget. Therefore, the cost of this scope can range from 0%-20% or more of a project’s total budget.
Bedrooms and
Living Spaces
The remaining living spaces (living rooms, bedrooms, dens, foyers, etc) do add into the total cost of a project, however they are proportionally less substantial than the costs mentioned above. Additional features of these spaces can however end up raising the cost, such as fireplaces, entertainment systems, etc. These areas of the project can sum 5-10% of the project’s budget - starting at $3,000 and going as high as $15,000.
It’s important to be mindful that these figures are all approximations, and the actual costs may vary (both up and down) based on the specific needs of your project.
Remainder of Suite
The balance of the projects budget will lie in the details that are not so easily categorized. This includes permits, demolition, doors, hardware, light fixtures, cleaning, waste disposal, etc. and can sum to 5-10% of a project’s budget ($3,000-$15,000).
Average Square
Foot (SqFt) Pricing
For a new legal basement suite meeting the standards of the Alberta Building Code and City of Calgary requirements, homeowners can expect a cost of $80 - $100 a square foot.
Why Legal Basement
Suites Are a Good Investment
Creating a legal basement suite in Calgary offers significant benefits. Legal suites comply with local regulations, ensuring tenant safety and landlord protection. Moreover, legalizing your basement suite can increase your rental income since tenants prefer legal, well-designed spaces.
Legalizing your basement suite also allows homeowners the opportunity to utilize a percentage of their rental income in addition to their earned income when applying for a mortgage. This can be a significant benefit in today’s marketplace with the cost of homeownership being so high a prospective buyer may be approved for a higher purchase price than if no legal basement suite were developed. This opportunity is also available to any existing homeowners if they were to refinance their home.
The Notorious Suites team has a wealth of experience navigating the complexities of legal suites and legalizing existing illegal suites, ensuring smooth sailing for homeowners that they can have complete confidence that every detail is meticulously handled.
The Process of
Legalizing Your Basement Suite
The process of legalizing a basement suite in Calgary involves obtaining necessary permits, meeting building code requirements, and passing inspections. While this can be a complex process, when working with a professional like Notorious Suites this becomes standard protocol ensuring that your suite meets all the latest standards. Legalized suites not only offer peace of mind but also add to the overall value of your property. Notorious Suites has a legalization guarantee, meaning once your project has been approved by the City of Calgary to commence, we will guarantee it will be an approved legal suite at completion.
Cost of Legalizing
an Existing Illegal Basement Suite
The City of Calgary Secondary Suites Amnesty Program was recently extended to December of 2026. This program allows homeowners with an illegal suite constructed before March 2018 to circumvent some building code requirements, reducing the cost to implore a legal suite. There will still be some minimum standards required, which include providing a bedroom window exit, smoke and carbon monoxide alarms, a protected exit route from the basement to the exterior, drywall barriers between suites and drywall barriers in the mechanical room.
One of the biggest costs (and headaches) with legalizing an existing basement suite is the requirement of a drywall barrier in the mechanical room. Mechanical rooms are typically very tight, and the walls and ceilings behind mechanical equipment, piping, electrical, and ducts may be completely inaccessible resulting in equipment and materials having to be temporarily removed to allow for the drywall installation before being re-installed. Mechanical room drywall barriers can range it cost from $3,000 to $10,000 based on site conditions.
City Grant
Programs for Legal Basement Suites
If you’re considering developing a legal basement suite, the City of Calgary secondary suites grant program may be available to help offset the initial costs. This program is designed to support homeowners in creating safe, legal, and comfortable suites for tenants. With potential savings from the grant, you can reduce your overall basement suite development cost while ensuring compliance with all safety regulations.
The City of Calgary Secondary Suite Incentive Program can provide qualifying homeowners a maximum of $10,000 of funds to build and register a secondary suite. The funding is broken into several life safety elements, that each carry a value that can be combined to a limit of $10,000.
- Egress Windows: $1,500
- Hardwired and interconnect smoke and carbon monoxide alarms: $1,000
- Protected Exit: $1,000
- Smoke Tight Barrier: $4,000
- Split heat/separate air (not required for all secondary suites): $6,000
Once a building permit has been approved for the project, homeowners may qualify for the incentive by applying for the program prior to installing any of the above elements. A Safety Codes Inspector will visit the site to confirm that none of the safety elements being applied for are existing. Once the project is complete, the inspector will then return and confirm that the elements that were applied for have been completed to the code standard. The funding will only be guaranteed if the works are completed within 6 months of confirmation of application.
The incentive application must be completed by the homeowner, and funds will only be issued to the name provided on the application form.
Currently, the incentive only applies to suites built within the main dwelling and does not apply to backyard suites.
The Right
Investment for Your Property
Viewing the cost to develop a basement suite in Calgary as an investment rather than just an expense is crucial. Whether you're adding space for tenants or family members, the returns on this investment come in the form of rental income and property value appreciation. With the current demand for affordable housing in Calgary, having a legal suite adds a unique advantage to your property.
By legalizing your basement suite, you gain the ability to include rental income alongside your regular earnings when applying for a mortgage. This added financial boost can be a game-changer in today’s competitive housing market, where the cost of homeownership continues to rise, making it easier for buyers to qualify for a higher purchase price. Current homeowners can also tap into this advantage when refinancing, unlocking the potential of their property’s rental income to improve their financial standing.
In addition to a higher mortgage approval amount and/or a lower monthly payment, property owners can use the net cash flow from their legal basement suites to invest in other income-generating opportunities. These compounding investments can accelerate wealth building, provide additional financial security, and create multiple streams of income that further enhance the homeowner’s overall financial portfolio.
What to Expect
from Development Costs
The cost to develop a basement in Calgary can vary based on the complexity of the project, but it’s important to remember that every dollar spent on developing a legal suite is an investment. Legal basement suites are in high demand in Calgary’s growing rental market, which means your property can stand out with a professionally designed and legal basement suite.
A cost that is not discussed often enough is the cost of a homeowner's time. Time is the most valuable asset we all possess as there are no refunds, no returns, and no exchanges. Ensuring you choose the right contractor will minimize the risk that your project runs into delays, or you there is additional re-work that has to be dealt with in the future.
Notorious Suites has experience understanding where projects can go astray, and implement strategies to ensure they stay on schedule, on budget, and are completed to the highest standard. This proactive approach saves homeowners valuable time and provides peace of mind throughout the entire project life cycle.
Taking Advantage
of Incentive Programs
Calgary homeowners can benefit from the secondary suite incentive program, which helps reduce the financial burden of developing a legal suite. These programs are designed to promote safe and affordable housing within the city, making it easier for homeowners to create legal, desirable rental spaces. By participating in such initiatives, you can offset some of the development costs while contributing to Calgary’s housing solutions.
Additional funding that homeowners may be eligible for are energy efficiency and accessibility grants.
The energy efficiency grant can provide up to an additional $1,250 for ENERGY STAR certified egress windows and split heat/separate air equipment. This value is made of a sum different categories including $50 per rough opening ($250 maximum), and range of flat fees for various mechanical equipment ranging from $150 - $1,000.
Homeowners may qualify for accessibility if your suite meets a variety of requirements for those with mobility issues. Some of which include minimum size/height doorways, grab bars in bathrooms, barrier free entries, and non-slip flooring amongst others. The total value a qualified applicant may be eligible for is $5,000.
Conclusion
In conclusion, developing a legal basement suite is a strategic investment that enhances your property’s value, generates rental income, and contributes to Calgary’s housing needs. While the upfront costs may vary based on factors such as design, materials, and legal requirements, viewing these expenses as an investment rather than just a financial outlay is crucial. A well-planned legal suite can provide significant returns through increased property value, rental income, and potential mortgage advantages.
Notorious Suites is committed to guiding homeowners through every step of the process, ensuring that each project is completed on time, on budget, and in compliance with all legal standards. With available grants and incentive programs, homeowners can offset some of these costs, making the development of a legal basement suite not only a smart financial decision but also a valuable contribution to Calgary’s community.
