Property Tax Increase - House hacking

[Vin Rao]

Hello Everyone,

I just read Brandon Turner's book on rental properties and am excited to make a start.

I currently live in a single family unit in the Greater Toronto Area which has a finished basement.

From a cash on cash return perspective, I think the best next option for me is to go the House hacking route and convert my finished basement into a separate unit and bring in some rental income. Work involved would be getting plan approval, putting in a separate entrance, adhering to fire code (insulating the two units from each other), adding a kitchen, and putting up dry wall to create a bedroom area. The basement already has a washer/dryer and a full washroom.

I was wondering what would the impact be to property taxes. I'm reading online that having two separate units on the same property will increase property taxes. I'm not sure by how much. Any insights would be helpful.