Every investor I talk to wants to buy a bungalow in Welland and put a suite in the basement. It’s the classic BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat).
Key Intelligence: Welland Duplexes
| Avg. Legalization Cost | $66,000 + HST |
| Avg. Monthly Rent (2-Bed) | $1,650 - $1,800 |
| Est. Annual Gross Income | ~$20,000 |
| Est. Payback Period | 3.5 Years |
| Market Status | High Demand |
But I see too many rookies running their numbers based on 2019 prices. They budget $30k for a renovation that will actually cost $65k, and their entire deal falls apart halfway through demolition.
As a contractor and an agent, I track these material and labor costs daily. Here is the unvarnished truth about what it costs to create a LEGAL Accessory Dwelling Unit (ADU) in Welland in 2025.
1. The "Invisible" Costs (Paperwork)
Before you swing a hammer, you are spending money. You cannot legally duplicate a dwelling without a building permit, and you cannot get a permit without drawings.
- BCIN Designer / Architect Drawings: $2,500 - $3,500
- City Building Permit Fees: ~$1,500 (varies by square footage)
- ESA (Electrical) Inspection Fees: $300 - $500
2. The "Safety" Costs (Code Compliance)
This is where the budget usually breaks. To make a suite legal, you must separate it from the main floor completely. This isn't just "putting up a door."
Fire Separation ($10k - $15k)
You need a continuous fire rating between units. This usually means:
- Tearing down existing ceiling drywall.
- Installing Resilient Channel (sound/fire bar).
- Installing 5/8" Type X Fire-Rated Drywall.
- Fire-rating the mechanical room.
- Solid core doors with self-closers at all shared entrances.
Egress Windows ($3k - $5k)
Your tenants need a way out if the stairs are blocked. Most vintage Welland bungalows have tiny basement windows.
You will likely need to cut the concrete foundation to install at least one window that meets the minimum opening size (3.8 sq. ft. clear opening). This involves excavation, concrete cutting, a new lintel, and a window well.
3. The Finishing Costs
Once the "boring" safety stuff is done, you still have to build an apartment.
- Kitchen (Cabinets, Counters, Plumbing): $8,000 - $12,000
- Bathroom (3-Piece): $7,000 - $10,000
- Flooring (LVP throughout): $3,000 - $5,000
- Appliances (4-piece set): $3,000 - $5,000
The Total Damage
If you are hiring a general contractor to manage this for you, here is a realistic budget for a turnkey legalization in 2025:
Is It Worth It?
Spending $70k sounds painful. But let's look at the ROI.
A legal 2-bedroom basement suite in Welland rents for approximately $1,650 - $1,800/month + utilities.
That is ~$20,000/year in additional gross income. Your payback period on the renovation is roughly 3.5 years. After that, it is pure cash flow.
Furthermore, a legal duplex designation adds significant resale value (often $100k+) compared to a single-family home with a "rough" basement.