Bunkies and guest cabins: permits, value and financing

A bunkie gives the cottage extra beds without an addition to the main building. Before you order a kit or call a builder, check the permit rules, what it does to value, and how you will pay for it.

Permit thresholds

Do not assume that a small bunkie is exempt because of its floor area. A storage-shed exemption is not permission to create sleeping accommodation. Minden Hills, for example, requires a permit for a sleeping cabin or bunkie of any size. Ask the current municipal building department to assess the proposed use, plumbing, servicing, setbacks and lot coverage before ordering a kit.

• Confirm whether sleeping accommodation is permitted in the zone.
• Confirm the building permit requirement for the intended use, not only the size.
• Confirm septic capacity, shoreline setbacks and any additional approvals.

Zoning and shoreline setbacks

Even with no permit needed, zoning still applies. Expect limits on:

• How far the bunkie must sit from the water, lot lines and the septic bed.
• Total lot coverage and the number of sleeping cabins allowed.
• Height, and whether a deck counts toward size.
• Whether it can have a kitchen or bathroom. Many townships say no, so it does not become a second dwelling.

Check the shore road allowance too. A bunkie built on municipal land is a problem you do not want to buy or create.

Plumbing and septic

Adding a sink or toilet usually triggers a permit, and the septic system has to be able to handle it. More sleeping space can also mean more water use than the system was designed for. Talk to a septic contractor before you add plumbing. See wells, septic and water tests.

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Kit or built on site

Kit bunkies arrive as panels and go up in a weekend or two. Built-on-site cabins take longer and cost more, but you can add insulation, a proper foundation and electrical to the township's standard. Either way, plan how materials get there. Water access lots often mean barging the kit across the lake.

Put the bunkie on solid footings, keep it off the septic bed and well, and leave room for future maintenance. A bunkie built over the leaching bed can damage the septic system and is hard to fix later.

Insurance

Tell your insurer about any bunkie, especially one with heat, a wood stove or electrical service. Outbuildings may need to be listed on the policy, and wood stoves usually need a WETT inspection. If you rent the cottage, ask whether the bunkie is covered for guests.

What a bunkie adds to value

A well-built, permitted bunkie adds sleeping space, which buyers and renters both like. Appraisers, though, tend to give outbuildings much less value than the main cottage, and may give little or none to one without permits. Build one because your family will use it. The resale bump is usually small.

Bunkies and short-term rentals

If you plan to rent the cottage, check the township's short-term rental by-law before you build. Some licences cap the number of guests or bedrooms, and a bunkie can count. A few townships in Haliburton County have discussed rules for secondary units. Our short-term rental rules guide lists the main cottage municipalities.

How to finance a bunkie

Lenders rarely give a mortgage for a bunkie alone, because a small outbuilding is not much security. Using equity in a property you already own is the usual route. Read using your HELOC and cottage renovation mortgages for the details.

Buying a cottage with a bunkie

1. Ask whether the bunkie had a permit, or was under the threshold when built.
2. Check for plumbing and where it drains.
3. Look at the wiring and any wood stove.
4. Confirm it sits on the lot, not the shore road allowance.
5. If you plan to rent, check whether the rental licence counts the bunkie.