Renting a commercial unit as a residential unit in a 4 plex?

Jun 18th, 2019 4:27 pm

#1

hammadarif [OP]: Jr. Member; Jan 22, 2015; 176 posts; 46 upvotes; Toronto

Jun 18th, 2019 4:27 pm

Renting a commercial unit as a residential unit in a 4 plex?

Folks, I have a strange questions and appreciate if someone could advise an opinion.

I have just bought a 4plex house and it has 3 residential units and 1 commercial unit (700 sq ft). My questions is can i rent out the commercial space to someone as a 1 bedroom or 2 bedroom residential unit? The overall zoning of the house is 'commercial'.

Any help / suggestions ?

Jun 18th, 2019 4:47 pm

#2

licenced: Deal Fanatic; Jul 3, 2011; 6517 posts; 3793 upvotes; Thornhill

Jun 18th, 2019 4:47 pm

You have a 4plex all of which is zoned commercial but it 3 residential units?

The type of use is based on the property code, it's the 3 digit property code assigned to it, what is it?

hammadarif wrote: ↑ Folks, I have a strange questions and appreciate if someone could advise an opinion.

I have just bought a 4plex house and it has 3 residential units and 1 commercial unit (700 sq ft). My questions is can i rent out the commercial space to someone as a 1 bedroom or 2 bedroom residential unit? The overall zoning of the house is 'commercial'.

Any help / suggestions ?

Jun 18th, 2019 4:56 pm

#3

hammadarif [OP]: Jr. Member; Jan 22, 2015; 176 posts; 46 upvotes; Toronto

Jun 18th, 2019 4:56 pm

it says Zoning 'M1' is this what you referring to?

Jun 18th, 2019 4:57 pm

#4

hammadarif [OP]: Jr. Member; Jan 22, 2015; 176 posts; 46 upvotes; Toronto

Jun 18th, 2019 4:57 pm

Property code: 471

Jun 18th, 2019 5:02 pm

#5

ProductGuy: Deal Addict; Jan 1, 2017; 1826 posts; 1871 upvotes

Jun 18th, 2019 5:02 pm

Won’t you make more money from renting it out as a commercial unit? Commercial rents are typically higher than residential rents. Also you’d probably find it easier to evict commercial tenants than residential.

+1

Jun 18th, 2019 5:45 pm

#6

licenced: Deal Fanatic; Jul 3, 2011; 6517 posts; 3793 upvotes; Thornhill

Jun 18th, 2019 5:45 pm

hammadarif wrote: ↑ Property code: 471

That's the one I'm looking for.

that code specifically allows for: Retail or office with residential unit(s) above or behind...

that means the lower front is currently restricted to commercial uses - check with the city for what they're restricted to, But, depending on where it is, like on a corner, you might be able to apply for a zoning variance for the lower unit.

Does that help?

Jun 18th, 2019 6:42 pm

#7

hammadarif [OP]: Jr. Member; Jan 22, 2015; 176 posts; 46 upvotes; Toronto

Jun 18th, 2019 6:42 pm

Well when i called city, as per them since this house has only 2 parking spots, i cannot apply for a variance. In order to apply for a variance to convert commercial unit to resenditial unit house should have 4 parking spaces, 1 for each unit.

Jun 18th, 2019 6:44 pm

#8

hammadarif [OP]: Jr. Member; Jan 22, 2015; 176 posts; 46 upvotes; Toronto

Jun 18th, 2019 6:44 pm

Commercial scope is getting less anfd less now a days with online shopping plus its a lot of headache. Business closes after 6 months and than you would have to renovate again and look for tenants... A lot of headache....

Jun 18th, 2019 6:45 pm

#9

kr0zet: Deal Fanatic; Jan 16, 2011; 7205 posts; 9218 upvotes; The NORTH

Jun 18th, 2019 6:45 pm

Sounds like you got your answer from the city.

Jul 11th, 2019 10:00 am

#10

hammadarif [OP]: Jr. Member; Jan 22, 2015; 176 posts; 46 upvotes; Toronto

Jul 11th, 2019 10:00 am

Sorry guys, my again... i was kind of thinking

under 'Property code: 471' i can't have someone run and online kind of business while live in there at the same time? i meant business and live in at the same time or will it not be allowed under this code or ?

Sorry for asking this...

Jul 12th, 2019 6:40 pm

#11

sidshock: Deal Addict; Mar 23, 2003; 4590 posts; 1215 upvotes; Hamilton

Jul 12th, 2019 6:40 pm

hammadarif wrote: ↑ Commercial scope is getting less anfd less now a days with online shopping plus its a lot of headache. Business closes after 6 months and than you would have to renovate again and look for tenants... A lot of headache....

commercial leases are much longer than residential. Guaranteed $$ sometimes paid a year or 5 in advance.
easier to evict.
No worries about renovation. When a business leases, they usually gut the place and reno how they wish.
Actually, it is LESS headache!