Accessory Dwelling Unit (ADU)

An ADU is a self-contained secondary residential unit located on the same lot as a principal residence, including secondary suites, laneway houses, garden suites, and coach houses. Under BC's Housing Statutes (Residential Development) Amendment Act, 2023 (Bill 44), most municipalities are required to permit one or more ADUs on lots zoned for single-family residential use, subject to local bylaws (effective July 1, 2024 for most municipalities—as of 2026-07-27—verify current). Verify specific zoning permissions and development requirements with your local government, as municipal bylaws govern details such as size, setbacks, and parking.

Yes. While the Housing Statutes (Residential Development) Amendment Act, 2023 requires most municipalities to permit ADUs, you must still comply with local zoning bylaws, building codes, and obtain necessary building permits from your municipality. The Local Government Act (RSBC 2015, c. 1) grants municipalities authority to regulate land use through zoning bylaws, including requirements for ADU size, location, parking, and servicing. Verify current local bylaw requirements, permitting processes, and fees with your municipal planning department before commencing construction.

Generally yes, if municipal bylaws permit rental use and the ADU is self-contained. Landlord-tenant relationships for ADUs are governed by the Residential Tenancy Act, SBC 2002, c. 78 (RTA), which sets out rules for rent, deposits, termination, and dispute resolution. If you live in the principal residence and share facilities (kitchen or bathroom) with the occupant, the RTA does not apply. Verify zoning restrictions on rentals, any strata corporation rental bylaws (if applicable), and mortgage lender consent requirements with a BC lawyer or notary before renting.

Adding an ADU may increase your property's assessed value, which can increase property taxes, as BC property taxes are based on BC Assessment Authority valuations. The BC Home Owner Grant Act provides a grant that reduces residential property taxes for principal residences, but eligibility and amounts depend on property value and location (as of 2026-07-27—verify current thresholds). Verify the impact on your property assessment, taxes, and Home Owner Grant eligibility with BC Assessment and your municipal tax office before proceeding.

No. Property Transfer Tax under the Property Transfer Tax Act, RSBC 1996, c. 378, applies only to the registration of a transfer or sale of real property or a taxable transaction involving a change in beneficial ownership. Constructing an ADU on property you already own does not trigger PTT, as there is no transfer or acquisition. Verify any other tax implications (income tax if renting, GST/HST on construction costs) with a licensed tax professional.

It depends. The Agricultural Land Commission Act, SBC 2002, c. 36, restricts non-farm uses in the ALR, and additional residential units may require ALC approval or be prohibited depending on the specific regulations and regional bylaws. Some municipalities have obtained standing resolutions or exemptions permitting limited ADUs on ALR lands, while others do not. Verify whether your property is in the ALR and what residential use is permitted by contacting the Agricultural Land Commission and your local government before planning an ADU.

This depends on your strata corporation's bylaws and the Strata Property Act, SBC 1998, c. 43. Most strata lots (individually owned units in a strata plan) do not have the physical lot configuration to accommodate a separate ADU, and strata bylaws often restrict alterations to limited common property or common property. If your strata includes a freehold strata lot with sufficient private land, verify permissions with your strata council and review governing bylaws and the strata plan with a BC lawyer or notary.

Generally no, unless you subdivide the lot or create a separate strata title. An ADU is typically a secondary structure on the same legal parcel as the principal dwelling and cannot be sold independently without subdivision approval under municipal bylaws and registration under the Land Title Act, RSBC 1996, c. 250. Subdivision and bare-land strata creation are subject to municipal zoning, the Local Government Act (RSBC 2015, c. 1), and legal survey requirements. Verify feasibility and process with your municipality and a BC lawyer or notary before attempting separate sale.

Yes. Rental income from an ADU is taxable under the federal Income Tax Act, and you must report it to the Canada Revenue Agency (CRA). You may deduct eligible expenses (proportionate to the rental unit) such as mortgage interest, property taxes, insurance, utilities, repairs, and depreciation (capital cost allowance), subject to CRA rules. The BC Speculation and Vacancy Tax Act, SBC 2018, c. 46, may also apply if the ADU is left vacant in a designated taxable region (as of 2026-07-27—verify current designated areas). Verify federal and provincial tax obligations with a licensed tax professional.

The Prohibition on the Purchase of Residential Property by Non-Canadians Act, SC 2022, c. 10, prohibits non-Canadians from purchasing residential property in Canada (currently extended through January 1, 2027—as of 2026-07-27—verify current). This federal ban applies to the purchase of the entire property (lot and all dwellings), not to individual structures; an ADU cannot be purchased separately unless it is on a separately titled lot. The ban includes exemptions for permanent residents, temporary residents meeting specific criteria, and certain other categories. Verify applicability and exemptions with a BC lawyer or licensed real estate professional before any non-Canadian purchase.