🏘️ How to Turn Your Basement Into a Legal Income Suite in Sault Ste. Marie

Looking to earn passive income from your property? Converting your basement into a legal secondary suite is one of the smartest real estate moves you can make in Sault Ste. Marie.

With rising housing costs and a growing demand for rental units, legal basement apartments (also called accessory dwelling units or ADUs) are a high-value investment. They can help you:

    • Offset your mortgage

    • Boost your property value

    • Provide housing for family or tenants

But not all basement apartments are created equal. To be legal, your suite must meet strict zoning, safety, and building code requirements. Here’s how to do it right.


📜 Step 1: Check Zoning Regulations

Before picking up a hammer, check that your property is zoned to allow a second suite. In Sault Ste. Marie, most residential areas (R1, R2) now permit secondary units, but there are conditions.

Key requirements include:

    • The suite must be located within the primary residence or in an approved accessory structure

    • Your lot must meet minimum size and parking requirements

    • The suite must be self-contained, with its own kitchen, bathroom, and entrance

You can confirm your zoning and any restrictions through the City of Sault Ste. Marie’s Planning Division.


🔧 Step 2: Ensure Code Compliance

The Ontario Building Code (OBC) outlines what’s required for a safe, legal unit. Here’s what your new suite must include:

✅ Separate Entrance

This can be a rear, side, or walkout entrance. Shared entrances are sometimes allowed but must meet fire code.

✅ Egress Windows

Each bedroom must have a code-compliant window large enough for emergency escape. This is non-negotiable.

✅ Fire Separation

Fire-rated drywall or specialized materials must be used between units. Smoke and CO detectors must be hardwired and interconnected.

✅ Soundproofing

Code-compliant insulation between floors and walls is required to reduce noise transmission.

✅ Independent Kitchen & Bathroom

The suite must function like a standalone home, with its own cooking, cleaning, and sanitation facilities.

✅ Minimum Ceiling Heights

Basement ceilings must be at least 1.95m (6’5”) clear height over most of the living space.

Note: Many older Sault homes were built before these codes existed, so renovation will likely require structural updates, electrical upgrades, and plumbing revisions.


💡 Step 3: Design for Comfort and Appeal

Even though it’s a basement, your new suite should feel inviting, warm, and safe. Great design will help attract reliable tenants and command better rental rates.

Top design tips:

    • Use light colors and recessed lighting to brighten the space

    • Choose durable, moisture-resistant flooring like vinyl plank

    • Add storage options like built-ins or under-stair compartments

    • Soundproof ceilings to reduce noise between units

    • Consider shared laundry access with separate locking doors


💰 Step 4: Take Advantage of Funding Programs

In some cases, you may qualify for municipal or provincial grants, loans, or rebates when creating a legal secondary suite—especially if you’re adding rental stock or housing for a senior.

Keep an eye on:

    • CMHC’s Secondary Suite Loan Program

    • Ontario Renovates (programs vary year-to-year)

    • Local affordability incentive programs through City of SSM


🛠️ Step 5: Work With the Right Professionals

Creating a legal income suite is not a basic renovation. It requires experience with building code, permit applications, inspections, and often structural work. You’ll need:

    • A general contractor familiar with legal suite requirements

    • Licensed electricians and plumbers

    • Drafting or engineering support for plans

    • Help navigating permits and bylaw compliance

We’ve completed dozens of legal basement suite conversions in the Soo. We know the local regulations, the inspectors, and the right way to create a space that’s safe, rentable, and code-compliant.


✅ Thinking of turning your basement into a rental unit? Let’s help you do it right—from initial assessment to final inspection.
➤ Contact us today for a no-obligation consultation and custom quote.