Where did all the residential rentals go?
I am currently a renter. I am also currently a home owner - waiting for our old home to be cleared to make way for a new home that will better meet our family's needs for the decades to come, and potentially adding a suite to the housing market. However, when I think about the prospect of being a landlord, the prospect is not overly alluring. Given current laws governing the landlord tenant relationship - a measure of hesitancy is understandable. Let's begin with the math on the new suite. We estimate that the cost of our build is about $400 per square foot, and the two bedroom suite is about 700 square feet. That's $280,000 - without accounting for any share of the land value the suite uses. As the suite is about 15 percent of the total square footage of the home, the proportionate share of land value is another $171,000. So the suite has a value of $450,000 - given this what is a fair rental rate? At $2,000 per month - it would be 18.75 years before the rent covers the ...