How Much Rental Income Can a Garage Suite Generate in Calgary?

Q: How Much Rental Income Can a Garage Suite Generate in Calgary?

A garage suite in Calgary typically generates $1,200–$1,800 monthly, depending on size, location, and finishes. A 400–600 sq ft suite costs $60,000–$100,000 to build, paying for itself in 4–7 years. Income varies by neighborhood; southeast and southwest Calgary command higher rents. You must obtain a development permit from the City of Calgary, comply with Alberta Building Code setback requirements, and ensure proper electrical and plumbing. Many lenders finance garage suites as accessory dwellings, improving overall property value and cash flow.

Realistic Rental Income for Calgary Garage Suites

Garage suites in Calgary generate strong rental income because demand consistently outpaces supply. Most property owners rent these units for $1,200–$1,800 per month, with premium locations in Aspen Woods, Bridgeland, or Mahogany commanding $1,600–$2,000.

Income Estimates by Size

Suite Size	Monthly Rent	Annual Income
400 sq ft	$1,200–$1,400	$14,400–$16,800
500 sq ft	$1,400–$1,600	$16,800–$19,200
600 sq ft	$1,600–$1,800	$19,200–$21,600

These figures reflect current Calgary market conditions and assume professional management and maintained units.

Construction Costs & ROI

Building a garage suite in Calgary costs $60,000–$100,000 depending on finishes and complexity:

Basic (drywall, basic kitchen): $60,000–$75,000
Mid-range (quality finishes, good appliances): $75,000–$85,000
Premium (high-end finishes, heated floor): $85,000–$100,000

At $1,500/month average rent, your payback period is 4–5.5 years. After that, it’s nearly pure profit (minus maintenance, property tax, utilities).

Calgary Permit Requirements

The City of Calgary requires a development permit for garage suites under the Land Use Bylaw. Key requirements:

Minimum 0.4 hectares lot size
1.5 m side setback, 7.5 m rear setback from property lines
Parking for two vehicles (main house + suite)
Compliant with Alberta Building Code for egress and ventilation
Separate electrical meter (preferred by lenders)

Permit approval typically takes 4–6 weeks; budget $500–$1,200 for municipal fees.

Tenant Quality & Management

Garage suites attract professionals, young families, and downsizers seeking affordability. Screen tenants carefully and use a property manager if you prefer hands-off management (typically 8–10% of rent).

Next Steps

OAF Construction handles full garage suite design and permitting in Calgary. Start with a consultation to assess your lot and get a precise cost estimate.