June, 2023

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Small Spaces, Big Questions: Navigating Land Leases and Legalities for Tiny Homes in Ontario

an image of a tiny home in ontario

Disclaimer: This article on owning a tiny home in Ontario is intended for the purpose of providing information only. It is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.

As rents and housing prices become increasingly less affordable, more Ontarians are looking into tiny homes. For example, Ancaster’s first Tiny Homes Show was held in August 2022 and drew over 2,000 visitors and had over 20 speakers presenting on a variety of topics. Shows like Tiny House Nation have become increasingly popular and many wonder if a tiny home may be the solution. 

With their cozy interiors, clever design features, and the promise of financial freedom, tiny homes have become appealing. Many see tiny homes as a way to downsize, reduce their ecological footprint, and embrace a more intentional way of living.

However, what legal issues should you consider before selecting your floor plans? What are the challenges to legally owning and parking a tiny home? What should you consider if you want to build a tiny home in Ontario?

This article will consider these questions and more. Whether you are looking at a tiny home or a [something], it is important to have the right real estate lawyer by your side. Our team of legal experts will guide you through the intricacies of home ownership, helping you navigate the legal landscape and ensure compliance with local regulations.

What is a Tiny Home?

In Ontario, a tiny home refers to a small, self-contained dwelling that typically ranges from 100 to 500 square feet in size. These homes are designed to maximize functionality and efficiency within a limited space. Tiny homes in Ontario often prioritize sustainable living, minimalism, and affordability, making them an attractive alternative to traditional housing options.

While each municipality will have its own requirements, the tiny house construction bylaws mandate that a tiny home must measure between 17.5 ft2 (188 ft2) and 37 m2 (400 ft2 ). It must also meet these requirements: 

  • It must meet the Ontario Building Code requirements for health and safety; 
  • You must be able to live in it year-round
  • It must have an area for dining, living and sleeping and have a functional kitchen and bathroom. 
  • It must have sewage and water hookups. 

Financing your tiny home 

It’s worth noting that it’s incredibly difficult to secure financing for your tiny home. Lenders are reluctant to provide traditional mortgage loans for tiny homes due to their unique nature and less confidence in their resale value. However, there are still financing options available to help you fund your tiny home project. For example, if you are purchasing from a tiny home builder, they will typically have their own financing plans in place.

Municipal requirements for your tiny home in Ontario

The municipality where you intend to park your tiny home will have various bylaws and zoning requirements that may affect you. 

These include:

  • Minimum lot size
  • Minimum residential building size
  • Distance from lot lines and/or a public street
  • Height requirements
  • Parking needs
  • Access to municipal services (sewage, electricity etc.)
  • Architectural design
  • Access for emergency services. 

Land Lease to Park Your Tiny Homes

Finding suitable land to park your tiny home is a critical step in realizing your tiny living dreams. Whether you’re looking for a permanent location or a temporary spot, there are several factors to consider when searching for the ideal piece of land. 

However, like any agreement, you’ll want to consider carefully your land lease. Some areas to consider include: 

  1. Utilities

Can you connect to essential utilities, such as water, sewage and electricity? How will the costs be shared? Are there any restrictions to your use of the utilities? 

  1. Maintenance costs

Clarify the costs associated with the land lease. In addition to the monthly rent, are there any other fees, such as property taxes, maintenance fees, or utility expenses? Who is responsible for maintenance and repairs to the property, such as landscaping and snow removal? Discuss any potential increases in rent over time and whether there are provisions for negotiating lease terms in the future.

  1. Your use of the land

When leasing land to park your tiny home, it’s essential to discuss and understand your permitted use of the property. Are there any restrictions or limitations on the activities you can engage in on the land? Are there specific rules regarding modifications to the land or the number of occupants allowed? It’s important to clarify these details to ensure that your intended use aligns with the terms of the land lease.

  1. Lease term and termination 

Review the lease duration and termination conditions carefully. Is the lease for a fixed term or a month-to-month basis? Understand the process for terminating the lease and any penalties or notice periods involved. It’s also important to consider if there are any options for lease renewal or extension if you plan to park your tiny home on the land for an extended period.

Beeksma Law: Answering all of your big questions 

At Beeksma Law, our commitment to exceptional client service, attention to detail, and in-depth knowledge of Ontario real estate laws set us apart. Contact Beeksma Law today to schedule a consultation and take the first step towards making your home ownership dreams a reality.