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Is a Basement Apartment the Right First Home in Canada?

Written By

Zain Usmani

May 6, 2025

Housing

A young man is relaxing on the sofa and playing guitar in a walk-out basement apartment.

New Canadians may shy away from renting a basement apartment. Many imagine a dark and damp basement with poor living conditions. Basement apartments can be quite nice and no different from any other part of the house. Discover the pros and cons of renting a basement apartment in Canada and whether basement living is the right option for your first rental in Canada!

It’s common for people to start renting basement apartments, especially if they want to live downtown in high-rent cities like Toronto and Vancouver. Basement apartments are usually more affordable than one- or two-bedroom apartments.

In Canada, some homeowners rent out basement apartments for short- or long-term accommodation. The homeowner often lives in the home above the basement. As a result, they may charge lower rental prices because they are renting only a part of their house. With more affordable rent, you can live in a neighbourhood that might otherwise be out of your budget.

Photo of homes in The Annex neighbourhood in downtown Toronto. Landlords who rent basements apartments often live in the home above the basement.
Basement apartment living allows you to live in more desirable neighbourhoods.

The Pros and Cons of Basement Rentals

If you are new to Canada, you probably want to find affordable housing, especially while you search for a job. Basement apartments are a great option. However, there are some disadvantages to consider. Weigh the pros and cons to determine if living in a basement apartment is for you.

PROSCONS
Affordability: They are often more affordable and offer more space than traditional apartments.

Budget: Rent usually includes utilities like electricity, water, heating, and air conditioning, which can save you money.

More Privacy: It may offer more privacy than a standard apartment, especially if it has a private entrance.

Location: You can find basement apartments in expensive residential neighbourhoods that may otherwise be out of your budget.

Limited Natural Light: Basement apartments can be dark if completely below ground.

No Access to Shared Amenities: Many apartment buildings or condos have amenities like a pool or gym that you forego in a basement apartment.

Noise: Basement apartments can be noisy, especially if young children live in the main unit.

Flood Risk: Basements are prone to flooding, especially during rainy months.


Basement apartments in Canada generally have:

  • One or two bedrooms
  • One full bathroom
  • Kitchen/dining area
  • Living room
  • Necessary appliance (fridge, stove, washer, dryer, etc.)
  • Private entry.

Whether you live alone or have a small family, basement apartments have more than enough living space. However, you may need a 2-bedroom apartment or another type of housing if you have a larger family.

If you’re searching for a basement apartment in Canada, determine how much space you need. View online listings to get a sense of the space. But, be sure to visit the rental property to inspect it and ensure the size and layout meet your needs.

Ask the landlord if utilities such as hydro and water are included in the rent and what amenities are included. Not all basement apartments will have a washer and dryer, so ensure a laundromat is nearby for convenience.

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Walkout versus Walkup Basement Apartments

The two main types of basements are walkup and walkout. This is a crucial factor to consider when choosing a basement apartment.

A bright walk-out apartment provides more natural light.
A walkout basement with a door that opens on the ground level.

Walkout Basement Apartment

A walkout basement has an entrance and exit on ground level, so you do not need to climb stairs to exit. Or, it may have an entrance at the back of the house. As a result, walkout basements have more natural light. Living in a walkout basement can feel like you live on the ground floor.

A spacious finished kitchen in walk-out basement apartment. You must weigh the pros and cons of living in a  basement apartment including such as less natural light.
A small window in a complete basement apartment lets in some natural light.

Complete or Partial Underground Basement Apartment

The most common basement apartment is completely or partially underground with stairs to a private entrance or a shared exit through the main level of the house. Most have small windows close to the ceiling, letting in some natural light.

Which Basement Apartment is Better for You?

Many people prefer walkout basements to walkup basements. Walkout basements have more natural light, better backyard access, and feel more open. And because of this, you don’t feel like living in a basement. However, finding a walkout basement is hard because the house needs to be on a slope. So walkout basements are a find.

A walkout basement may be more expensive than a walkup. However, it is possible to find a well-priced walkout basement. Just make sure to start your search early.

Walkup basements are more common. Most rooms will have ground-level windows that give some natural light. However, the basement apartment you choose depends on your preference and needs.

A woman is collecting water in a bucket from a ceiling leak. She is speaking on a mobile phone. It's important to weight the pros and cons of basement living in Canada.

Do I Need Tenant Insurance?

Tenant insurance is good to have, no matter what type of housing you rent. However, it’s brilliant if you rent a basement apartment. The risk of water damage caused by the rental unit above you is higher (water flows downward). So, buy renter’s insurance to protect your contents and valuables and reduce the costs if you have to move out while repairs are done.

A smoke detectors and interlinked fire alarm in action.

Landlords must ensure the basement apartment meets provincial regulations and fire and safety standards. But, as a tenant, you should verify the legal status of the rental unit.

Landlords have to provide:

  1. 1. An Electrical Safety Authority (ESA) certificate to show the electrical system complies with safety standards.
  2. 2. A fire certificate to confirm that the basement apartment meets fire safety requirements.
  3. 3. A certificate of compliance to prove the basement is registered and compliant with regulations and all city bylaws.

If a landlord doesn’t provide these documents, you can file a complaint with the local municipality. Landlords who do not meet compliance standards can face fines of up to $25,000.

A young couple are unpacking moving boxes as the they move into their first rental in Canada.

I Don’t Have a Credit History in Canada, Is this a Problem?

While this can be a stumbling block that newcomers in Canada face, you can rent a home in Canada without a credit history. Get tips here to rent a home in Canada without a credit score.

An aerial view of detached homes in Hamilton, Ontario.
Detached homes in Hamilton, Ontario.

I’m Ready to Buy a Home. Why Should I Rent?

Buying a home in Canada is a long-term commitment and can be more expensive than renting a home. So, it’s smarter to rent before you buy a house in any city. No amount of online neighbourhood or city research will give you as much insight as living in it.

Renting is a shorter-term commitment. As Canada is new to you, you may want to wait until you know for certain where you want to live. If you rent in your city of choice before buying a home, you can explore and experience different neighbourhoods.

You may buy a home only to discover you don’t like the neighbourhood or the city. You may want to move to another city or province for better job opportunities in your field. Relocating to another home, city, or province is expensive. It’s better to take your time before you buy.

Other creative and affordable pathways to homeownership in Canada include rent-to-own and home co-ownership.

Is Basement Living in Canada for You?

A basement apartment is a great choice if you want a temporary place. It allows you to gain a sense of the city before you buy a house. A more affordable basement apartment will decrease your living costs while you settle in Canada.

Renting a basement apartment can be an affordable housing solution, offering a beautiful, safe, and comfortable living environment. Explore your options! You may discover that basement living is the right solution when you arrive in Canada.

WRITTEN BY

Zain Usmani

Writer, Prepare for Canada

My name is Zain Usmani and I am a freelance content writer who currently resides in Mississauga, Ontario. I immigrated from Pakistan to Canada 5 years ago and have lived in many cities ever since. I have lived in Calgary AB, Edmonton AB, Regina SK, London ON, and Mississauga ON, while visiting over 40 Canadian cities and towns. I have a great passion for writing and I love helping people through it.

© Prepare for Canada 2025

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