Knowledge Centre · Rental & Investment

Rental & investment.

Purpose-built rentals and income suites — what you can build in Ontario, how the returns work, and the financing and incentives that apply.

Common questions

Rental & Investment

Is building a new rental property a sound investment in Ontario?

It can be, in a market with strong rental demand and supportive policy for new units. A purpose-built, energy-efficient rental can combine durable cash flow, lower operating costs and favourable financing. As with any investment the numbers must be modelled for the specific site and build — which is where we start.

What types of income properties can you build?

Purpose-built rental buildings, homes with one or more legal secondary suites, and multiplexes (duplex, triplex, fourplex) where zoning allows. The right configuration depends on the lot, the zoning and your investment goals.

What is a legal secondary or basement suite, and what are the rules?

A legal secondary suite is a self-contained unit — its own kitchen, bathroom, entrance and life-safety provisions — that meets the Ontario Building Code, Fire Code and local zoning. Building it legally protects its value, its insurability and its rental status. We design suites to be compliant from the outset.

How do recent Ontario zoning changes (additional residential units) affect what I can build?

Ontario now permits up to three residential units as-of-right on most serviced lots that already hold a home — a province-wide minimum under the More Homes Built Faster Act. Ottawa has gone further: its new Zoning By-law 2026-50 allows up to four units as-of-right on a serviced lot. Exact rights depend on your specific lot and zoning, which we confirm during feasibility.

How do I estimate rental income and return on an investment build?

Model the all-in cost (land, hard and soft costs), realistic market rents, operating expenses, financing terms and vacancy, then test the return against your goals and against a sale. Energy efficiency and durable construction improve the operating side of that equation over the building's life.

How does energy efficiency improve a rental's returns and tenant appeal?

It lowers operating costs and utility exposure, supports stronger and more stable occupancy, and can unlock better financing and incentives. Efficient buildings also age better and cost less to maintain — all of which supports long-term return.

What financing is available for an energy-efficient rental new build?

CMHC's MLI Select rewards energy-efficient (and affordable or accessible) rentals with up to 95% loan-to-cost, amortizations up to 50 years, and reduced premiums; roughly 25 percent better-than-code performance earns meaningful energy points (in 2026 combined with affordability or accessibility for the top tiers). It is often the single most valuable lever for a rental build.

What incentives and tax credits apply to rental projects?

For corporations, the federal Clean Technology Investment Tax Credit gives a 30 percent refundable credit on solar, geothermal, heat-pump and battery equipment. Enbridge's Savings by Design offers free energy modelling and builder incentives for new construction, with an affordable-housing stream up to $120,000 per project. Programs change, so we confirm current eligibility per project.

Should I build to rent or build to sell?

Build-to-sell aims at a one-time gain; build-to-rent aims at durable cash flow, financing advantages and long-term appreciation. The right answer depends on your goals, tax position and the site — and the construction approach and specification can be tuned to either.

How do I plan for durability, low maintenance and property management?

Specify robust, low-maintenance materials and efficient systems, design for easy servicing, and plan management and reserves from the start. A building designed to be operated, not just built, protects returns over decades.

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Incentive programs and figures are current as of June 2026 and re-verified at the time of engagement; grants and terms change.

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