The vocabulary here is local. In Saskatoon you are talking about a secondary suite inside the house, most often a basement suite, or a garden suite in the back yard, and zoning permission depends on the district and the lot. Requirements cover egress windows, ceiling height, fire separation between units, smoke alarms, parking and a separate entrance, and an inspection confirms them before the suite is legal.
Run the numbers on the build rather than on the rent alone. Development costs, permit fees, an electrical upgrade and the finishing all land before the first tenant, and the suite then falls under The Residential Tenancies Act, 2006 with its notice periods, deposit limits and hearing process. Insurance and property tax treatment can both change once the property is tenanted, so tell your insurer rather than discovering it after a claim.
On resale, the premium is for legality, not for framing. Two houses with identical basement suites sell at very different prices when one has a permit file and the other does not, and no automated estimate distinguishes them because unpermitted work leaves no record. Joel Dyck's hand-reviewed valuation confirms what is on file and prices the improvement for what it verifiably is.