Can You Live in a Commercial Property (Ontario)?

You may have heard a lot about the benefits of achieving an ideal work/life balance on your health and happiness. As idyllic as it sounds, it can be difficult to pull off. This is particularly true for a busy professional who owns and runs a business.

Still, there are often creative ways to make more time for yourself without sacrificing any of your productivity. What better way to do this than to find a place you can both live in and run your thriving enterprise? Think of the countless hours this would save you in commuting back and forth each day. That’s why, in this post, we’ll explore whether or not you can use commercial property as residential.

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What Is Residential and Commercial Real Estate?

“Can I live in a commercial property?” is a question clients ask me quite frequently. It’s the verbal equivalent to typing “live and work property for sale” on local real estate sites.

Your building might have generous square footage and all the comforts of home; all that’s left is somewhere to sleep and shower. With all of these amenities, it makes sense to live there, at least on paper.

The reality is more complex, because it depends on so many factors. The intent of the building, zoning restrictions, and, of course, whether you own or lease the property can play a role in what you are permitted to do.

For a better idea of how living in a commercial building might work, you can review the Commercial Tenancies Act (CTA) and the Residential Tenancies Act (RTA).

The Commercial Tenancies Act governs the relationship between landlords and tenants in the commercial sector.
The Residential Tenancies Act oversees home and apartment rentals.

Are you ready to search for your next commercial or residential property? You may find exactly what you’re looking for in my featured listings right here.

Commercial Tenant Protections Are Less Stringent

The CTA doesn’t explicitly state whether or not a tenant can live in a building; in fact, it can complicate the matter even further. For example, if the premises are used as both a home and a business, both Acts are in effect.

If you’ve ever rented (or rented out) a residential property before, you likely know that the Landlord and Tenant Board (LTB) leans heavily in favour of tenants. That is less true with the CTA. There are fewer protections, no rent control, and evictions are less regulated.

As always, when signing any agreement, be sure you understand all of the terms and clauses in the contract. A real estate agent with both commercial and residential expertise can guide you toward the best outcome.

Are you planning to buy a residential home? The series below can help:

What Is A Mixed Use Property?

A mixed-use property (or mixed-use building) is, just as it sounds, one that is used for both residential and commercial purposes. An artist who runs a studio on the main level and lives on the second is a perfect example.

In Toronto, you’ll occasionally also see restaurants with apartments over top. Sometimes, both units are owner-occupied. Alternatively, there could be a commercial tenant on one level and a residential space on the other.

Toronto was actually an early adopter of mixed-use properties as far back as 1986. Today, there is a renewed interest in the concept as it allows the city to fully capitalize on its limited number of vacancies.

Massive projects like “The Well” in downtown Toronto are also prime examples of this growing trend. Here, you find retail space on the ground level combined with 1700 residential units across six towers. It’s basically an entire community all on one city block!

If you’re on the hunt for a commercial property, the posts below can guide you:

When Residential and Commercial Spaces Combine

Generally speaking, you can only live in a commercial building if it is designated as a mixed-use property that is also approved for residential use. This is in large part due to differences in building standards when it comes to safety, ventilation, soundproofing, and energy efficiency. If a property was designated solely for commercial purposes, you would need to get permits and undergo significant renovations to convert it to a legal residential space.

If residing in the same place as your business is a priority, consider working with a qualified real estate agent to find a mixed-use commercial residential property for sale. Someone with years of experience in both sectors can help you understand the rules and regulations and streamline the long and involved acquisition process.

When you’re ready to take the next step, a Commercial Real Estate Toronto Specialist can offer customized guidance to achieve your goals. Connect with me at OMarjanovic@kw.com or call 647.620.2882 to learn more.