Caswell Hill sits on a tight grid of heritage character homes close enough to walk downtown, and renovation quality varies from house to house more than the street address does, which is exactly where an unpermitted basement conversion hides in plain sight. Once a tenant moves in, the Residential Tenancies Act, 2006 governs notice periods, deposits and any dispute regardless of whether the suite itself was ever permitted.
The permit is the part that actually protects you as a landlord. An inspection confirming smoke and carbon monoxide detectors, a proper heat source and a legal exit is what keeps a fire, an insurance claim or a tenant complaint from becoming a much bigger problem than a missed rent cheque, and insurers can deny a claim outright if they later learn the suite was never on file.
Joel Dyck can tell you whether a Caswell Hill basement already meets that standard or what it would take to get there. Get your hand-reviewed valuation from Joel Dyck.