Before the Showing: Research First

Do your homework before you walk through the door. Pull the property's permit history from the municipal website. Confirm zoning permits two dwelling units. Check MPAC for property assessment and tax history. Search the address in the Landlord and Tenant Board's online system for any filed applications. This 20-minute research session can save you from falling in love with a property that has fundamental legal issues.

The 20-Point Checklist: Legal and Administrative

1. Confirm zoning permits two units. 2. Pull building permit for second unit — look for a completion certificate. 3. Verify property is assessed as a duplex by MPAC. 4. Confirm no outstanding work orders or violations from the municipality. 5. Review existing leases — are they month-to-month or fixed term? What are the current rents? 6. Confirm first/last month deposits are being held correctly and will transfer to you.

The 20-Point Checklist: Physical Inspection Items

7. Separate exterior entrances for each unit. 8. Fire-rated separation wall between units. 9. Two electrical panels or one panel with two properly labeled sections. 10. Each unit has its own or sub-metered hydro service. 11. HVAC: separate systems or one system with separate zones. 12. Each unit has hot water — owned or rental? Rental costs transfer to you. 13. Plumbing: proper drainage for both kitchens and both bathrooms. 14. Egress windows in all bedrooms (minimum 0.35 sq.m. opening). 15. Interconnected smoke and CO detectors between units. 16. Roof condition — age, visible damage, recent repairs. 17. Foundation: no horizontal cracks, no active water infiltration. 18. Windows and exterior doors: watertight, functional. 19. Evidence of pest activity. 20. Both units: kitchen and bathroom in functional, habitable condition.

Green Flags vs Red Flags

Green flags: purpose-built duplex (not a conversion), two hydro meters, recent permits on file, long-term stable tenants at below-market rents (income growth opportunity at turnover), newer mechanical systems. Red flags: one hydro meter serving both units, no permit history for second unit, signs of unpermitted work, very low rents locked in by long-term tenants with no mechanism for increase, any evidence of moisture damage in lower unit.