Markham's Best Neighbourhoods for Buyers Who Want a Home With Rental Suite Potential
Markham's Best Neighbourhoods for Buyers Who Want a Home With Rental Suite Potential
A future rental suite can help with the mortgage. But not every basement can become one. Here is what to look for before you buy.
Neeraj Moolchandani is a top real estate agent in Markham, Ontario.
The Short Answer
Ontario law allows up to three residential units on most lots zoned for detached, semi detached and townhouse homes, and Markham's proposal to allow a fourth did not go ahead. When shopping for a home with rental suite potential, look for a separate or easily added entrance, basement ceiling height of at least 1.95 metres, or 1.85 metres under beams and ducts, windows that meet egress rules, room for parking, and a lot outside environmentally sensitive areas. Detached homes and semis in established areas often offer the best potential. Plan for permits, fire separation, and registration with the City.
Neeraj and the Kaizen Real Estate Team, one of the teams Markham buyers trust for practical investment advice, help buyers judge suite potential before they buy. This guide is your shopping checklist. For the step by step process of building and registering a unit, see our legal basement apartment guide.
Features to Look For
| Feature | Why It Matters | What to Check |
|---|---|---|
| Separate entrance | Gives the unit its own way in and out | Side door, walk up, or walkout, or room to add one |
| Ceiling height | Must meet code for a legal unit | At least 1.95 m, or 1.85 m under beams and ducts |
| Windows | Bedrooms need a safe way out | Openable area of at least 0.35 m2 |
| Plumbing access | A kitchen and bathroom need drains | Existing rough ins or a bathroom already in place |
| Parking | Tenants often have cars | Driveway space; confirm City parking rules |
| Zoning and location | Some areas exclude additional units | Check the City's environmentally sensitive area map |
Where to Search
- Established areas like Markville, Middlefield, Markham Village, and Raymerville: many detached homes and semis with side entrances and wider driveways.
- Newer areas like Cornell, Wismer, Greensborough, and Box Grove: some homes were built with side entrances or separate basement access.
- Near transit like Unionville GO and Highway 7: strong tenant demand. See our GO transit guide.
Want homes with real suite potential? Neeraj can help you search for the right features. Call or text Neeraj at (647) 370 8885.
The Income Side
In October 2026, average Markham rents were about $1,924 for a one bedroom and $2,347 for a two bedroom, according to Zumper. A basement unit may rent below these averages depending on size, light, and finish. Subtract added costs, such as insurance, utilities, repairs, and vacancy, before you count on the income. Lenders may consider some legal rental income when you qualify, so ask your mortgage professional.
The Rules
- Ontario allows up to three units on most lots zoned for detached, semi detached, and townhouse homes. Markham's plan for four units did not go ahead.
- A building permit is needed to create a unit, including fire separation and interconnected smoke alarms.
- Markham requires two unit houses to be registered, with an inspection.
- Landlords must follow Ontario's tenancy rules. See our first time landlord guide.
Not sure if a basement can become a legal unit? Let us check before you offer. Call or text Neeraj at (647) 370 8885.
Buying a Home With an Existing Suite?
- Ask whether it is registered with the City and built with permits.
- Confirm whether a tenant will stay, and review the lease.
- Check insurance for a two unit home.
- Have your inspector look closely at fire separation and exits.
An unregistered unit can raise insurance, safety, and resale concerns. Our investing guide covers rental math in more detail.
Income potential starts with the right home. Reach out anytime. Call or text Neeraj at (647) 370 8885.
Related Markham Guides
Rental Suite Potential Questions, Answered
Can I add a rental suite to a home in Markham?
Ontario law allows up to three residential units on most lots zoned for detached, semi detached, and townhouse homes. A building permit, fire separation, and City registration are required.
What ceiling height does a basement rental unit need?
The Ontario Building Code requires at least 1.95 metres of ceiling height for a basement secondary suite, or 1.85 metres under beams and ducts.
Does a basement unit need a separate entrance?
Not always. Code allows several exit arrangements, including shared stairs with proper separation. A separate entrance is often preferred by tenants and simplifies design.
How much rent can a basement unit earn in Markham?
In October 2026, average Markham rents were about $1,924 for a one bedroom and $2,347 for a two bedroom, according to Zumper. Basement units may rent below these averages.
Should I buy a home with an unregistered basement apartment?
Be careful. Ask whether it was built with permits and can be registered, check insurance, and have an inspector review fire separation and exits before you firm up.
Find a Home That Helps Pay for Itself
Neeraj will help you find homes with real suite potential and check the details before you commit.
Call or text (647) 370 8885 · info@kaizenrealestate.ca
Kaizen Real Estate Team, eXp Realty, Brokerage · 9763 Markham Rd, Markham, ON L6E 1A4
Building code: Ontario Building Code secondary suite guidance. Unit permissions: Ontario Planning Act and City of Markham. Rents: Zumper, October 2026. Confirm rules for any specific property. This article is general information, not legal, tax, mortgage, or financial advice. Market commentary describes current conditions and is not a promise of future prices. Information is believed accurate but should be independently verified. Not intended to solicit properties currently under contract.
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