Zone Change: Lanehouses, Triplexes In Kitchener
The City of Kitchener is looking at opening up zoning density for rental units in residential neighbourhoods. Provincial legislation passed this summer requires municipalities to allow duplexes and lanehouses. Kitchener has opted for further densification by planning to allow up to three units (triplexes) within a detached house provided they meet site planning obligations, this could happen as soon as 2020.
Kitchener planners have already indicated that at least one parking spot per unit must be available, furthermore, site planning will require a certain amount of square footage per unit in relation to lot size, so townhouses and semi-detached property will likely not be eligible for multi-family conversion.
Converting Triplexes From Detached Houses
Benjamins Realty welcomes this initiative, it’s a way to create more affordable rental inventory without building high-rises and instead, work with existing property stock. It also presents an excellent investment opportunity. Over the last year, there have been 19 triplexes sold in Kitchener with an average sale price of $625,947 while the top sale price reached $799,900. Considering eligible detached property could potentially be purchased for 400-450k it leaves a lot of operating room to convert the property into a triplex and at the same time achieve top rent return.
As an aside, Kitchener has some of the fastest-growing rental rates in the country for an urban centre. One-bedroom rental rates are up 15% year over year in Kitchener according to rental rate aggregation by padmapper.com. There’s never been a better time to consider real estate investment in Waterloo Region. Contact us today if you have questions about starting or growing your real estate portfolio in KW or simply fill out the form below.