How Much Rental Income Can a Basement Suite Generate in Calgary?
Rental Income Range in Calgary
A legal, permitted basement suite in Calgary generates $1,200 to $1,600 monthly, depending on:
- Suite size: 1-bedroom ($1,200–$1,350); 2-bedroom ($1,500–$1,600)
- Location: Southwest and central Calgary neighbourhoods rent higher than outlying areas
- Finishes: Renovated suites with modern kitchens and flooring command 10–15% premiums
- Amenities: Separate laundry, parking, or outdoor space increase appeal
Annual Income Projection
| Suite Type | Monthly Rent | Annual Gross | Net (70%) |
|---|---|---|---|
| 1-bedroom | $1,250 | $15,000 | $10,500 |
| 2-bedroom | $1,550 | $18,600 | $13,020 |
Net income assumes 70% return after expenses (vacancies, utilities, maintenance, property tax allocation).
What Affects Your Income
Location Matters
Southwest Calgary (Aspen Woods, Bridgeland) and inner-city neighbourhoods (Inglewood, Eau Claire) rent 15–20% higher than northwest suburbs. Proximity to transit, shopping, and employment hubs drives demand.
Legal Compliance Is Non-Negotiable
City of Calgary requires:
- Separate entrance (Alberta Building Code, Section 3.2.2)
- Egress window meeting minimum dimensions
- Fire separation and sprinkler systems
- Basement Rental Accommodation Permit ($500–$800)
Unpermitted suites void homeowner insurance and create liability exposure—renters have legal recourse, and landlords face fines up to $10,000.
Hidden Cost Reality
Budget these offsets:
- Property tax increase (typically 5–10% on assessed value)
- Utilities (if you cover heating/water): $150–$250/month
- Maintenance and turnover: 8–10% of annual rent
- Vacancy allowance: 1–2 months per year
Next Steps
A professionally designed, code-compliant basement suite maximizes rental appeal and long-term income. OAF Construction handles design, permitting, and construction to Calgary Building Code standards.