Buying a duplex or small multiplex in Ontario

Small multi-unit properties can be a strong first investment, but the advertised income is only worth what the legal, insurable reality supports. Start by confirming with the municipality that each unit is legal and that occupancy permits exist. Retrofit fire separation and egress requirements are the usual failure points.

Then examine the tenancies. In Ontario you buy the tenants with the building: existing leases, rents and rights continue, and you cannot simply raise rent to market on a sitting tenant.

Ask for leases, rent receipts or ledgers, the standard lease forms, utility arrangements and any Landlord and Tenant Board history. Underwrite on actual rents and realistic expenses, including vacancy, repairs and capital reserves.