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Basement Apartment - How to Convert It into a Living Space

By Editorial Team

Updated on March 24, 2025

Modern and cozy living room with gray sofa, orange cushions, white bookshelf, indoor plants, and soft lighting. Wooden floor and minimalist decor.

Are you the proud owner of a home with a basement, but said space is still unfinished? Looking to turn it into a bedroom, playroom, or fully-loaded apartment? Here’s what you need to know before jumpstarting a basement finishing project.

  • What project-related aspects should you consider?

  • How much should you budget to finish a basement?

  • What standards should you meet to ensure your basement unit is compliant?

Find answers to these questions and much more below.

How to Convert a Basement into an Apartment

Bright and modern living room with black ceiling beams, white sofa with yellow cushions, wall-mounted TV, elegant staircase, and dining area with pendant lighting.

Source : Soumission Rénovation

Several aspects should be considered when choosing to build a basement apartment. First, note that one can’t build a basement apartment without taking into account municipal regulations, especially if you’re hoping to register it under a separate address (for example, if you're a landlord looking to lease it out). 

We’ve dedicated an article to converting a basement into an apartment and suggest you take a closer look if you’re planning to do so. That being said, if you’re a homeowner/landlord hoping to turn a basement apartment into an appealing setting to potential tenants or a comfortable space for family members, you’ll have handy everything you need to know:

What Are the Key Standards for Basement Apartments?

Building standards established for basement living spaces are rather stringent. It’s a matter of safety, comfort, and quality of life. Moreover, if your design fails to meet local building code requirements and zoning by-laws, your insurance company could deny future claims.

Basement Apartments Under the Building Code

In Canada, when it comes to turning an unfinished basement into a living space, the regulations established vary from one province to the next, if not from one municipality to the next, based on where the project is done. That being said, all builds must comply with the Building Code, which establishes housing standards, including electrical and plumbing requirements for residential structures.

You have to pay closer attention to certain aspects when finishing a basement to ensure the entirety of said setting is standard-compliant, including entry points/exits (large windows, doors, emergency exits), ceiling height, water- and air-tightness, and ventilation. 

Here are some topic-specific articles about standards in effect:

What Are the Municipal Regulations for Basement Apartments?

Besides the Building Code, homeowners and landlords should familiarize themselves with municipal regulations in effect. Cities can establish their own legal requirements for apartment building practices.

For example, in Montréal, building a basement apartment isn’t legal in all boroughs, given the flooding risks in some areas. Elsewhere, basements can be converted into apartments, but renovations must meet established requirements.

Head to your municipal website, and if you can’t find what you’re looking for, contact city authorities directly to access updated criteria.

Can I Build an Apartment in My Parents’ Basement?

It depends on city-specific regulations. In some cases, it’s permitted, while in others, doing so hinges on a number of conditions, rendering the process rather complicated. Educate yourself before moving forward with every step of the project. But most importantly, request a building permit well ahead of time to proceed legally once the project is underway.

There’s a shortage of available housing in all major cities in Quebec, and in most Canadian regions for that matter. It’s become a huge problem, just like that of finding senior-adapted living spaces. Maybe having your parents move in with you is the most worthwhile option, but it’s something to think over carefully. 

Here’s an article that delves deeper into intergenerational homes: Bigenerational Home: 7 Must-Know Facts Prior to Undertaking Such a Project.

What Should You Know About Basement Apartment Insurance?

Talk to your insurance provider before undertaking any aspect of your project to know whether your basement can be insured. Theoretically, if your project complies with established standards and regulations, chances are, your insurance provider will approve, but based on their risk assessment, they may submit other requests before officially greenlighting your project.

Basement Suite Design Ideas

Home theater room with projection screen, beige bean bag chairs, gray wall, soft lighting, and modern gray carpeted stairs.

Source : Soumission Rénovation

If your basement conversion project isn’t yet fully defined, you may be in the market for a few ideas to guide you along. We’ve gathered a few select ideas in the following section.

A Bedroom

Comfort, safety, and peace of mind—these are just some of the key concepts that come to mind when picturing a bedroom, whether it be on an upper floor or down in the basement. To achieve the above-mentioned goals when designing a basement bedroom, pay close attention to the following aspects:

  • Having easily accessible windows and doors to ensure plenty of natural light.

  • Installing smoke detectors in every room.

  • The ceiling height must meet standards and be tall enough for an adult to live comfortably.

  • Humidity level: Basements are notoriously humid, so be sure to set up a dehumidifier in the bedroom or near it.

  • Room-specific ventilation: Basements tend to lack natural ventilation, so consider installing an air exchanger to achieve the desired results.

  • Flooring: It must be suited to the environment in itself (avoid wall-to-wall carpeting).

A Home Theatre, Recording Studio, or Workshop

Basements are conducive to privacy and soundproofing, which pushes homeowners to set up areas that benefit from said characteristics, such as home theatres, workshops, recording studios, and home offices.

When it comes to recording studios, soundproofing first comes to mind. You can hire the services of soundproofing experts to find the right materials and methods that meet your needs and budgets.

As for workshops and home offices, make sure to design an appealing setting that fosters comfort and productivity. If you plan on designing a space that mandates good airflow (e.g., you will use products containing high levels of VOCs), make sure to consider that aspect to avoid creating an unhealthy setting for occupants.

A Playroom

Do you have kids (or are one at heart) and would like to keep toys out of sight to have a tidier main floor? Well, then a basement playroom might just be the best option! Oftentimes, basements have a decent square footage, separate from the rest of the house, so hidden from plain sight.

As long as the space is safely outfitted, featuring good lighting and storage, it’s a completely feasible project. You can also play around with the decoration to create a playful, colourful, or thematic space based on your setting-specific preferences.

Here’s an article outlining the best colour schemes to turn your basement into an enjoyable and welcoming space: 6 Beautiful Colours to Showcase Your Basement.

What Are the Practical Aspects of Designing a Basement?

Modern bathroom with glass shower, green tiles, light wood vanity, arched mirror, and stylish accessories.<br>

Source : A4 Group Construction Services Inc.

What Should You Know About a Basement Kitchen or Bathroom?

If your goal is to build a basement apartment, you’re more than likely hoping to set up a kitchen and bathroom. Installing kitchen cabinets, plumbing fittings, and electrical wiring in the basement often mandates quite a bit of creativity, as unique designs must be tailored to said space. The primary features to consider when building out an unfinished basement are the following:

  • Water- and air-tightness

  • Airflow (ventilation) and dehumidification

  • Installing new plumbing and electrical systems

  • Insulation

  • Lighting 

Basement-to-Garage Access: What Should You Consider?

Basements are often directly connected to garages. If so, to create a safe environment, pay close attention to air quality. If the insulation, sealants, and ventilation are poorly done, hazardous emissions coming from the garage could filter into the basement’s living space. It’s one of the drawbacks of a basement apartment, but it can be easily rectified if things are done right.

Who Can Draw Up a Basement Blueprint?

Ideally, this task should be left to an architect or architectural technologist, or even an interior designer, depending on the project’s plan. If you hire a general contractor, they can manage that aspect of the project, tailoring their efforts to your needs and the project’s reality.

How Much Does It Cost to Have a Separate Basement Entrance?

Budget between $3,000 and $10,000 to add a doorway and a door. If you want to build a basement apartment, plan for an exterior door. The project cost hinges on several factors, including digging a pathway leading to the basement door, the selected door, and the project's complexity.

Basement Apartment FAQs

What is another name for a basement apartment?

Basement apartments are also referred to as basement rentals, street-level dwellings, mother-in-law apartments, in-law suites, etc.

Is a basement considered a living space?

Yes. A basement can be considered a living space if it meets certain criteria, as mentioned in the article. 

Can I build a windowless bedroom in a basement?

No. Windowless bedrooms are illegal, compromising the safety of the dweller in the event of an emergency. A window that opens inward is a necessary safety feature, but it’s also one that boosts the occupant’s health and comfort.

What is a basement apartment?

A basement apartment is a secondary suite located in the basement of a building or house. As mentioned in this article, it often features a kitchen, bathroom, and living space. These apartments typically feature a separate entrance and can be rented out or used as additional living space for family members. However, they must meet specific building codes and safety regulations, such as proper ventilation, fire exits, and ceiling height, to be legally habitable.

Are basement apartments legal in Canada?

Yes. Basement apartments are legal in Canada, provided that they were built according to zoning by-laws, building code requirements and regulations, and fire and safety regulations.


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