Building a Laneway House: Increase Your Property Value

If you’re tired of seeing the clutter pile up in your garage, then a laneway house may be the next best option. Laneway houses fly under a variety of aliases such as Garden Suites, or Carriage Homes depending on the specific municipality. Currently in Metro Vancouver four cities – Vancouver, Coquitlam, Port Moody, and Pitt Meadows – allow you to knock down your garage, and throw together a secondary living unit on your property.

There are a few specific guidelines that need to be followed in order for the project to come to fruition including:

• Unit must not be greater than 900 square feet (750 in Vancouver)

• Only one suite per property

• There must be an additional parking spot for the unit

• There must be at least a living room, kitchen, bathroom, and bedroom

• Can only be built onto a back lane
  
• Unit must be attached to local sewer, water, and drainage systems

The cost to build a laneway house is around $250,000 to $275,000 depending on the size and layout, and the built in amenities. About $50,000 goes into the site preparation, while the remaining money covers the cost of construction. Lanefab Design is the primary designer for laneway houses in Metro Vancouver and allow owners to either choose a prefabricated style suite, or to custom design a laneway home.

Roofing is a small part of the overall budget but a big part of how long a laneway house lasts. Hardeep Gill, an experienced Ladner roofer and Burnaby torch on roof specialist, says most laneway homes use low-slope or flat roofs that are perfect for 2-ply torch-on membranes—if they’re detailed properly. He recommends owners ask which membrane system is included, how long it’s warrantied, and how drainage is handled, because most leaks he sees come from rushed torch-on work and poorly placed drains, not from the material itself.

Harrison Thompson, a Victoria pressure washing specialist as well as a Victoria window cleaning expert, suggests owners budget a small line item for maintenance washes—typically a few hundred dollars—because a pre-paint or pre-stain wash greatly improves coating adhesion and keeps the new build looking “brand new” longer.

According to Deepak Dosanjh, owner of a local Surrey bin rental company, aligning your bin schedule with demo, framing, and finishing milestones can shave 2–3 days off your build and save you monet in idle labour and extra hauls. He advises locking in your first two bin deliveries before permits are issued so your crews never “build around garbage.”

The City of Vancouver mandates that laneway homes can only be rented out as a way to increase the number of rental units within the city. From the property owner’s perspective, The cost of building the laneway unit will be paid back through monthly rental charges, and when the time comes to sell the property the addition of the carriage home will increase the overall property value.

Jason Smith, appliance repair technician in Burnaby recommends “tenant-proof” selections: mechanical-dial laundry where possible, dishwashers with stainless interiors and auto-clean filters, and ranges with front-mounted, lockable anti-tip brackets. He adds that mid-tier brands with easy-to-source parts often beat premium models on lifetime cost in rentals.

Top 5 Reasons to build a laneway house

1. Increase your property value

• Although it’s a large chunk of change to front, having an additional living space on your property will raise its value when looking to sell
  
• Ken Babineau, certified Saanich arborist and Victoria arborist notes that healthy, well-placed trees can boost resale value by adding shade, privacy, and a more finished look to properties with laneway homes. Strategic pruning or new planting can also create natural screening between the main house and the laneway unit, which many buyers prefer.
  
• Lovepreet Jandu, exterior metal railings installer in Surrey, says clean, modern lines (black aluminum with slim posts or glass-infill) read ‘new’ and help photos pop in listings. He adds that low-maintenance railings can be a selling feature for buyers who don’t want annual sanding or painting.

2. Contribute to affordable housing in Vancouver

• Listing a laneway home offers an affordable housing option for prospective renters in Vancouver. If they cannot afford to buy, renting a detached home would be more desirable than an apartment

3. Get rid of a car

• If your laneway house is replacing a garage, it might be time to say goodbye to an old car. With the skytrain expanding and public transit expanding into Coquitlam, it is a viable transportation option for residents

4. Bring family closer

• Whether it’s keeping your parents close, or giving your children some solidarity, a backyard suite will keep your family together

5. Become a trendsetter

• Although already popular in the City of Vancouver, the rest of the Metro Region is still catching up and municipal governments are starting to warm up to the idea

If you’re willing to raise your property value, take your spring cleaning to the next level and trade your old garage for a new laneway house.

More information on laneway houses from Scout Magazine and Vancouver4life.