# Garden Suite Rental Income Toronto | GST

> Garden suites designed to rent in Toronto: $2,200-$3,400 monthly potential, rent-maximizing layouts, rental calculator and fixed-price builds from $220K.

URL: https://gardensuitetoronto.ca/garden-suite-rental-income/

![Rental-ready one-bedroom garden suite with a private entry at dusk](/images/misc/rental-ready-one-bedroom-garden-suite-with-private.webp)

# Garden Suite for Rental Income Toronto, ON | Design for Maximum Monthly Rent

Last updated: October 13, 2026

Garden Suite Toronto

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 provides rental income garden suites, one- and two-bedroom rental layouts, sub-metered units and tenant-ready handovers throughout Etobicoke, North York, Scarborough, East York, York and Old Toronto, backed by 20+ years combined Toronto design-build experience.

Toronto garden suites typically rent for $2,200 to $3,400 a month. We design for what tenants pay for, price the build with a rental calculator in your feasibility report, and deliver a fixed-price suite from $220K to $360K that is ready for a lease on occupancy day.

$220K - $360K 4-7 months

-   Written feasibility before deposit
-   12-14 week permit average
-   Fixed price, 5-stage draws
-   P.Eng-led, BCIN Part 9

Request a Free Feasibility Review

[#service-lead-form →](#service-lead-form)

 

Call (437) 291-2577

[tel:+14372912577 →](tel:+14372912577)

## Thanks, we have your lot details.

A member of our Toronto team will call you within 24 hours during business hours (Mon-Fri 8am-6pm, Sat 9am-3pm).

Pre-Contract Feasibility

## Is your lot right for rental income suites?

Send your address details. We reply within 24 hours with next steps and the feasibility fee for your lot.

-   24-Hour Callback
-   12-14 Week Permits
-   10-Year Structural Warranty
-   $5M Liability + WSIB
-   22+ Years, P.Eng-Led

What's Included

## What You Get With Our Rental Income Suites Service

Layouts, finishes and metering chosen for tenant demand and $2,200-$3,400 monthly rent.

-   Rent-maximizing 1BR and 2BR layouts
-   Separate metering options
-   Durable, low-maintenance finishes
-   Rental calculator in feasibility report
-   HST rental rebate documentation support
-   Tenant-ready handover binder

## Rental Garden Suites in Toronto, Explained

A rental garden suite is a backyard home built to be leased: a garden suite, laneway suite or other additional residential unit (ARU) designed around what tenants pay for. Toronto’s rental market is tight, and a private, well-lit backyard home with its own entry competes well against condo units and basement apartments.

### What does a rental garden suite cost in Toronto?

Our rental suites run $220,000 to $360,000 turnkey. A 40 to 45 sqm studio sits near $220,000 to $250,000, a 48 to 55 sqm one-bedroom near $250,000 to $300,000, and a 56 to 60 sqm two-bedroom or loft suite near $300,000 to $360,000. Toronto rents for these suites typically run $2,200 to $3,400 a month, so payback before financing commonly lands around 9 to 12 years. Bill 23 removed development charges for ARUs, and long-term rentals may qualify for the HST New Residential Rental Property Rebate.

### What rules apply to renting a suite under By-law 574-2022?

By-law 574-2022 permits garden suites to be rented. Long-term tenancies are covered by the Residential Tenancies Act, which governs leases, rent increases and evictions. Short-term rentals under 28 days need a licence under STR By-law 547-2017, and Toronto generally limits STRs to a principal residence. The suite stays on the same title as the main house and cannot be sold separately. Rental income is reportable on your taxes.

### Who builds rental garden suites in Toronto?

Any garden suite builder can build a box. We design rental suites with a landlord’s eye: durable finishes, sub-metering, low running costs and layouts that lease fast. Our founder, Dmitri Varga, P.Eng and BCIN Part 9, has led Toronto design-build for 22+ years, and our clients from Trinity-Bellwoods to North York have signed leases within weeks of occupancy.

## What We Do for Rental Suites

![One bedroom garden suite floor plan marked with separate entry laundry closet storage and bedroom for a Toronto rental](/images/content/one-bedroom-garden-suite-floor-plan-marked-with-se.webp)

### 1\. Rental calculator in feasibility

Our 

site evaluation

[/garden-suite-feasibility/ →](/garden-suite-feasibility/)

 includes estimated rent for your neighbourhood and suite size, carrying costs and payback, so you can decide with numbers.

### 2\. Layouts tenants pay for

Private entry, a real bedroom door, in-suite laundry, closet and bulk storage, good light and a small outdoor space. These details raise rent and shorten vacancy.

### 3\. Metering and services

A 100-amp sub-panel with sub-meter options, separate thermostat and a plan for water and heating costs.

### 4\. Durable, low-maintenance build

Hard-wearing floors, quartz counters, solid-core doors and a Toronto Green Standard Tier 1 envelope that keeps tenant bills low.

### 5\. Tenant-ready handover

Manuals, warranty, maintenance schedule and rebate documents in one binder.

## Rent vs Suite Size in Toronto

| Suite | Typical size | Typical monthly rent | Typical build cost |
| --- | --- | --- | --- |
| Studio | 40-45 sqm | $2,200 - $2,500 | $220K - $250K |
| One-bedroom | 48-55 sqm | $2,500 - $3,000 | $250K - $300K |
| Two-bedroom or loft | 56-60 sqm | $2,900 - $3,400 | $300K - $360K |
| Laneway two-storey | Varies | $2,800 - $3,400 | $260K - $380K |

![Chart of estimated monthly rent and payback years for studio one bedroom and two bedroom garden suites in Toronto](/images/content/chart-of-estimated-monthly-rent-and-payback-years-.webp)

Rents are estimates for planning, not guarantees, and depend on location, finish and market conditions.

## How to Model Your Payback

Here is the simple math we use in every feasibility report:

1.  Annual rent = monthly rent x 12
2.  Subtract a vacancy allowance, usually 3 to 5 percent
3.  Subtract carrying costs: property tax change, insurance and maintenance, often $3,500 to $6,000 a year
4.  Payback years = build cost divided by net annual income

Example: a $280,000 one-bedroom renting at $2,800 nets about $27,750 a year after a 4 percent vacancy allowance and $4,500 in costs. Payback is about 10 years before financing and tax.

> **Layout beats square metres**
> 
> A 50 sqm one-bedroom with a private entry, laundry and storage often out-rents a poorly planned 58 sqm suite. We design rental suites around what tenants value, not just floor area.

## Which Build Type Pays Back Fastest?

Prefab garden suites

[/prefab-garden-suites/ →](/prefab-garden-suites/)

 lower build cost by $20,000 to $40,000 and shorten construction, which helps payback. 

Laneway houses

[/laneway-house/ →](/laneway-house/)

 in Old Toronto often reach the top of the rent range. 

Garage conversions

[/garage-conversion-garden-suites/ →](/garage-conversion-garden-suites/)

 can be the cheapest route when the structure is sound. Our 

garden suite cost estimation

[/garden-suite-cost/ →](/garden-suite-cost/)

 page compares them side by side.

Transparent Pricing

## How Much Does Garden Suite for Rental Income Cost in Toronto?

Turnkey rental suites include design, permits, utilities, build and a tenant-ready handover. CAD, before HST and any rental rebate.

### Studio rental

Starting from

$220K - $250K

-   40-45 sqm studio
-   Typical rent $2,200 - $2,500
-   In-suite laundry
-   Durable finishes

Get a fixed-price quote

[/contact/ →](/contact/)

Most chosen

### One-bedroom rental

Starting from

$250K - $300K

-   48-55 sqm 1-bedroom
-   Typical rent $2,500 - $3,000
-   Separate entry and storage
-   Sub-metering ready

Get a fixed-price quote

[/contact/ →](/contact/)

### Two-bedroom rental

Starting from

$300K - $360K

-   56-60 sqm or loft
-   Typical rent $2,900 - $3,400
-   Two-storey or loft option
-   Upgraded sound control

Get a fixed-price quote

[/contact/ →](/contact/)

All prices in CAD before HST. Zero deposit on feasibility, 10% at contract, then 5 draws: permit, foundation, framing, finishes and occupancy. No change orders without your written approval. See every service on our 

Toronto garden suite pricing page

[/pricing/ →](/pricing/)

.

Why Garden Suite Toronto

## Why Choose Us for Rental Income Suites?

### Designed to rent

Separate entry, in-suite laundry, storage and good light are standard on our rental layouts.

### Payback before you sign

Every feasibility report includes a rental calculator for your lot and neighbourhood.

### Low running costs

TGS Tier 1 envelope and a heat pump keep utility bills low, which tenants notice.

### Durable finishes

We specify finishes that survive tenant turnover without constant repairs.

### Fixed price

Your return depends on your cost. Our fixed-price contract keeps it predictable.

### Rebate paperwork

We supply the documents for the HST New Residential Rental Property Rebate application.

Our Process

## How Does Our Rental Income Suites Process Work?

One contract, one team, one schedule. Each step has a clear output before the next one starts.

1.  1
    
    ### Rent and budget check
    
    About 2 weeks
    
    Feasibility report with envelope, budget and a rental calculator for your neighbourhood.
    
2.  2
    
    ### Rental layout design
    
    4-8 weeks
    
    A layout built around tenant priorities: entry, light, laundry, storage and sound.
    
3.  3
    
    ### Permits and metering
    
    12-14 weeks
    
    Toronto Building permit, plus Toronto Hydro and Toronto Water planning for sub-metering.
    
4.  4
    
    ### Durable build
    
    10-16 weeks
    
    Hard-wearing floors, quality fixtures and a TGS Tier 1 envelope that keeps tenant bills low.
    
5.  5
    
    ### Tenant-ready handover
    
    Occupancy
    
    Appliance manuals, warranty, maintenance schedule and rebate documents in one binder.
    

## Ready to price rental income suites for your lot?

The feasibility report turns your address into eligibility, envelope, utility capacity and a budget range, before any contract.

Request a Free Feasibility Review

[/contact/ →](/contact/)

 

(437) 291-2577

[tel:+14372912577 →](tel:+14372912577)

Our Work

## Recent Rental Income Suites Work in Toronto

Site photos from Toronto projects. No addresses, no faces. Click any photo to enlarge.

See all 10 Toronto case studies with prices

[/projects/ →](/projects/)

Client Proof

## What Clients Say About Our Rental Income Suites Work

Feedback from homeowners we have designed, permitted and built for across Toronto. Project prices are the fixed contract amounts.

Sofia L. • Cabbagetown

$236,000 detached retirement suite

> “We are in a Heritage Conservation District and two other builders told us to wait. This team prepared the heritage package, chose board-and-batten cladding that Heritage Preservation Services liked, and handled every comment. We plan to move into the suite and rent the house when we retire, so the clean permit record mattered to us. The final inspection passed first time, the warranty is in our file, and the price never moved from the signed contract. I would hire them again without a second quote.”

Stefan R. • Parkdale

$242,000 prefab-hybrid rental

> “The report showed our 60-amp panel could not carry a suite. They coordinated the Toronto Hydro upgrade early, so it never held up the build. Rent started in month six.”

Gord and Anne P. • Forest Hill

$418,000 custom 2-bedroom family suite

> “Two protected oaks sit behind our house. Their arborist and engineer put the suite on helical piles outside the root zones, and Urban Forestry approved it without a fight. Our son and his kids live out back now, with their own entrance and their own meter.”

Common Questions

## Rental Income Suites FAQs: Toronto Homeowner Questions

Straight answers on cost, timelines, by-laws and permits for Toronto lots.

### How much rent can a garden suite earn in Toronto?

Most garden suites in Toronto rent for $2,200 to $3,400 a month. Studios of 40 to 45 sqm usually sit at $2,200 to $2,500, one-bedrooms of 48 to 55 sqm at $2,500 to $3,000, and two-bedroom or loft suites at $2,900 to $3,400. Location matters: suites near subway lines in North York, near the Danforth or in Old Toronto neighbourhoods such as Leslieville and Trinity-Bellwoods rent at the higher end. Layout matters as much as size: a private entry, in-suite laundry, storage, outdoor space and quiet raise rent and shorten vacancy. Every feasibility report includes a rental calculator for your neighbourhood and suite size.

### What is the payback period on a rental garden suite?

As a rough guide, a $280,000 suite renting at $2,800 with a 4 percent vacancy allowance and about $4,500 a year in tax, insurance and maintenance nets about $27,750 a year, which pays back in about 10 years before financing. Your numbers depend on your build cost, rent and financing.

### Can I legally rent out my garden suite?

Yes. By-law 574-2022 permits long-term and short-term rental. Long-term tenancies follow the Residential Tenancies Act. Short stays under 28 days require Toronto STR By-law 547-2017 licensing. Rental income is reportable for tax.

### Can I use a garden suite for short-term rentals?

Toronto's STR rules generally limit short-term rentals to your principal residence. A garden suite can qualify if it is your principal residence, for example if you live in the suite and rent the main house. Check current City rules before planning around STR income.

### Should the suite have separate utility meters?

Sub-metering helps you bill tenants fairly and avoid disputes. We plan a sub-panel and sub-meter options for hydro, and discuss water and heating metering during design.

### Is there a tax rebate for rental garden suites?

Long-term rental suites may qualify for the HST New Residential Rental Property Rebate. Rules and amounts change, so confirm with your accountant. We supply the documents.

### Will a rental suite raise my property tax?

MPAC may reassess your property after the suite is built. The increase varies, so we include an allowance in the rental calculator's carrying costs.

### What finishes hold up best for tenants?

Luxury vinyl plank or engineered hardwood floors, quartz counters, solid-core doors, semi-gloss paint in wet areas and simple, replaceable fixtures. We avoid finishes that look good on day one and fail in year three.

### Do tenants need parking?

Toronto no longer requires parking for additional residential units in most cases. Bike storage and a lit path to the street matter more to most tenants.

### How fast do garden suites rent?

Well-designed suites in good locations usually rent within weeks of occupancy. Several of our clients signed leases during the final weeks of construction.

### Still have a question about your lot?

Send us the address and lot width. We will tell you what applies before you pay for anything.

Request a Free Feasibility Review

[/contact/ →](/contact/)

 

Call (437) 291-2577

[tel:+14372912577 →](tel:+14372912577)

Free Calculators

## Run the Numbers Before You Call

### Garden Suite Rental Payback Calculator

See net rental income, yield and payback years for a Toronto garden suite.

Use the calculator

[Garden Suite Rental Payback Calculator →](/tools/garden-suite-rental-payback-calculator/)

Keep Exploring

## Related Services

![Printed garden suite fixed-price quote and site plan on a kitchen table](/images/misc/homeowners-table-with-a-printed-garden-suite-fixed.webp)

### Garden Suite Cost Estimation

Free consult and a written, fixed-price CAD quote with a 5-stage draw schedule.

Free consult

[Garden Suite Cost Estimation →](/garden-suite-cost/)

![Detached two-storey garden suite with cedar siding in a Toronto backyard at golden hour](/images/misc/detached-two-storey-garden-suite-with-cedar-siding.webp)

### Detached Garden Suite Construction

40-60 sqm detached backyard homes, designed, permitted and built under one fixed-price contract.

$180K - $340K

[Detached Garden Suite Construction →](/detached-garden-suites/)

![Two-storey laneway house facing a Toronto public lane at dusk](/images/misc/two-storey-modern-laneway-house-with-dark-vertical.webp)

### Laneway House

Lane-facing homes under Chapter 150.8, from eligibility check to occupancy.

$200K - $380K

[Laneway House →](/laneway-house/)

![Site evaluator measuring a staked garden suite footprint in a Toronto backyard](/images/misc/site-evaluator-with-a-clipboard-and-laser-measure-.webp)

### Garden Suite Site Evaluation

A written report confirming lot eligibility, allowable envelope, utilities and budget before any contract.

$1.2K - $2.8K

[Garden Suite Site Evaluation →](/garden-suite-feasibility/)

![](/images/misc/modern-garden-suite-with-cedar-siding-and-standing.webp)

24-hour callback during business hours

## Start Your Rental Income Suites Project With a Written Feasibility Report

Send us your address and lot width. You get a written feasibility report with eligibility, envelope, utilities and a budget range, then a fixed-price quote.

Request a Free Feasibility Review

[/contact/ →](/contact/)

 

Call (437) 291-2577

[tel:+14372912577 →](tel:+14372912577)

-   Zero deposit on feasibility
-   Fixed-price contract
-   No change orders without written approval