As Calgary’s communities evolve, carriage houses—also known as over-the-garage or nanny suites—are gaining popularity. It’s a popular type of secondary suite, basement developments are another. Regardless, they both unlock incredible opportunities for homeowners, but they also help to support a variety of situations. Whether you’re a homeowner or an investor, building a backyard suite can bring numerous benefits.

Here are the top five reasons why adding a backyard suite to your Calgary property is a smart move.

#1. Generate a Secondary Income

The first and most obvious benefit of building a backyard suite is the chance to earn extra income. Renting out the suite to long-term tenants can provide a secondary stream of revenue, often ranging from $1,200 to $2,250 per month, depending on the size, amenities, and location of the suite. This additional cash flow can help supplement your lifestyle and future plans – what’s not to love about that?

#2. Earn More With Short-Term Rentals

If you’re looking to maximize the value of your backyard suite’s income-generating potential, you can always list it on platforms like Airbnb as a short-term rental. Calgary’s central neighbourhoods are frequently sought out by business professionals and tourists, among others, who seek more homey and comfortable accommodations for travel. With daily rates ranging anywhere from one to a few hundred dollars, the earning potential with short-term guests could surpass traditional rentals while offering more flexibility to use it for family and friends if the need arises.

#3. Boost Property Value

Investing in a backyard suite increases the overall value of your home. Not only does the extra living space make your property more attractive to buyers, but potential purchasers are often willing to pay a premium to own a residence with rental income potential. This ensures you’ll see a tangible return on investment when it comes time to sell.

#4. Extra Space for Family or Work

Need room for aging parents, a returning child, or even a home office? A backyard suite can meet all these needs and more. It offers independent living for family members or visiting guests while maintaining privacy for those living in the main residence. Alternatively, a garage suite can also be transformed into a dedicated workspace, perfect for the growing work-from-home trend, giving you both convenience and productivity.

#5. Foster Vibrant, Sustainable Communities

Backyard suites contribute to more walkable, dynamic Calgary neighbourhoods by increasing population density in established areas. This sustainability feature attracts diverse groups, from young professionals to seniors, helping to create connected and thriving communities. It’s a lifestyle upgrade, not just for your family, but also for Calgary as a whole.

Looking to Build a Backyard Suite?

In Calgary’s competitive housing market, a backyard suite is more than just a building project—it’s an investment in your future. Whether you’re looking to generate income, support multi-generational living, or enhance your property value, a backyard suite could be the perfect addition to your home. Have questions about homes with secondary suites? Contact an experienced REALTOR® to see your options today!