The complexities of multiplexes - Wright Sisters Group

Last year, in another measure to increase housing in Toronto, city councillors passed a bylaw that makes zoning for multiplexes easier and allows for single-family homes to be turned into multiplexes. This provides Toronto homeowners and buyers more options for living spaces in the city, whether as a home or as an investment. Here, we break down the complexities of multiplexes.

What are multiplexes?

According to the Toronto City Council — which conducted a study of multiplex housing in 2023 — a multiplex is considered low-rise housing with two, three, or four units in the building. Existing houses can be converted to accommodate these units or new homes can be built as such. The benefits of multiplex housing include the ability to adapt to growing housing needs, as well as building greener, more inclusive and diverse neighbourhoods in the city.

Multiplex living with friends or family

For some, turning a single-family home into a multiplex could be a convenient way to provide multigenerational housing. Grandparents or children could live right next door, and additional units could be rented out for supplementary income. There’s even a multigenerational home renovation tax credit that can help with the conversion of existing homes.

For younger Canadians who are having a harder time getting into the housing market in Toronto, co-ownership has been an increasingly popular solution. Now, friends or family could combine resources to purchase a multiplex or units within one. But with any major joint financial and legally-binding situation, make sure you have the proper documentation in place for this type of arrangement, such as a tenancy or co-ownership agreement that outlines the financial structure of the deal, as well as its dissolution.

Buying multiplexes for renting

For those who can afford it, the allowance of multiplexes offers an interesting investment property opportunity. Whether purchasing an existing or pre-construction structure or converting a home into a multiplex with units to rent out, there’s a lot that comes with becoming a landlord. From deciding on the purchase itself to renting out units to the right tenants, know what the process entails before forging ahead.