Two Toronto councillors are asking the city to reconsider its rules on laneway rental units as a way to increase housing supply.
Laneway suites are small, detached units that are typically found at the back of a residential property, adjacent to an alleyway.
Right now, the city's zoning bylaws don't allow laneway units to be built. They are considered on a case-by-case basis, but it is very difficult to get past the red tape.
Councillors Ana Bailao and Mary-Margaret McMahon want the city to take another look at these kinds of units. A public consultation will be held next month.
City staff, though, say laneway suites come with problems. It would be difficult to manage services like garbage collection and snow removal.
NEWSTALK 1010 host and real estate expert Todd C Slater says there is a demand for these units because they are more affordable than condo rentals. He estimates they would go for about $500 to $1,000 a month.
Slater says it would also make mortgage payments more affordable for home owners who build a laneway suite. The price of the home would go up with the addition of an extra unit, but he says the extra income would more than offset that cost.