The Hidden Costs of Skipping Permits for Additional Residential Units: A Cautionary Tale

Nov 23
2 min read

Building Additional Residential Units without proper permits might seem like a quick fix, but it often leads to costly problems down the road. One homeowner faced an Order to Comply because no legal permits were issued, forcing expensive upgrades or drywall removal during inspection. Skipping the right process puts your property value and safety at risk. Read on to learn why following the Ontario Building Code from the start saves time, money, and headaches later.

The Real Price of Permit Shortcuts

A Case Study in Costly Corrections

When property owners build Secondary Dwelling Units without obtaining proper building permits, the consequences can be severe. Recently, we worked with a client who had constructed an Additional Residential Unit without any legal permits. What seemed like a money-saving decision initially turned into a financial burden.

The municipal inspector discovered the unpermitted work and issued an Order to Comply. This legal notice forced the homeowner into a corner with only one way out: obtain proper permits retroactively and bring everything up to code.

Two Expensive Outcomes

When building inspectors find unpermitted dwelling units, homeowners typically face one of two, costly scenarios:

Fire Alarm System Upgrades: Installing a fully interconnected fire alarm system throughout the property, plus adding extra 15-minute burn-time drywall in specific areas.
Complete Drywall Removal: Removing all existing drywall to install certified fire-rated materials that inspectors can visually verify meets Ontario Building Code standards.

The frustrating reality? Even if fire-rated drywall was actually used during the initial construction, inspectors cannot simply take your word for it. Without proper documentation from the permit process, they must assume the materials don't meet code requirements.

Why Permits Matter from Day One

Protecting Your Investment

Building permits aren't just bureaucratic paperwork. They safeguard your property value and ensure your Additional Residential Unit is legal for:

Renting to tenants
Insurance coverage
Future property sales
Liability protection

Safety First

The Ontario Building Code exists for good reason. Fire safety regulations protect lives. When Secondary Dwelling Units are built to code, they include:

Proper fire separations between units
Adequate emergency exits
Smoke and carbon monoxide detectors
Safe electrical systems

Avoiding the Ripple Effect

The cost of retroactive compliance far exceeds doing things properly from the start:

Permit application fees
Professional drawing preparation
Demolition of existing work
Materials for rebuilding
Labor costs
Lost rental income during repairs

The Smart Approach to Additional Residential Units

Creating a legal Secondary Dwelling Unit requires:

Professional drawings that meet municipal requirements
Submitting permit applications before work begins
Regular home inspection checkpoints during construction
Final approval from building officials

This process guarantees your investment remains protected and compliant with all legal requirements.

Your Next Steps

If you're considering adding a Secondary Dwelling Unit to your property, start with the right foundation. Our team specializes in guiding homeowners through the permit process for Additional Residential Units, ensuring your project meets all Ontario Building Code requirements from day one.

We can help you avoid the pitfalls of unpermitted construction and create a safe, legal living space that truly adds value to your property. Book a free consultation today to learn how we can make your Additional Residential Unit project stress-free and code compliant