What are the advantages and disadvantages of building a multi-unit building?
- coraliefortin076
- Jul 31
- 6 min read
Building a multi-unit building is an increasingly attractive option for individuals and investors in Canada, especially in a context of housing scarcity and pressure on rents. For readers of the Plan Maison Québec blog, this strategy can be a profitable solution, but it also comes with challenges that must be anticipated. In this article, we explore the main advantages and disadvantages of building a multi-unit building.
A multi-unit building project is more than just a real estate investment: it's a strategic approach that can generate long-term passive income, diversify your assets, and even meet a personal housing need. Thanks to the expertise of Plan Maison Québec, you can make this type of project a success from start to finish, whether you're living in it or renting out the units entirely.
1. What is a multi-unit dwelling?
The term "multi-unit" encompasses residential buildings with several habitable units: duplexes, triplexes, quadruplexes, or even more. In Quebec real estate, "multi-unit" is often reserved for buildings with five or more units, although options with two to four units ("plexes") are very popular due to their simpler management and affordability.
At Plan Maison Québec, we regularly assist clients in designing custom plans for duplexes and triplexes, which maximize space on urban or semi-urban land while optimizing rental profitability. Building a multi-unit building is ideal for young families seeking a supplemental source of income as well as seasoned investors looking to build a solid real estate portfolio.
1.1 The duplex
The duplex is arguably the most common type of multi-unit housing, particularly among owner-occupiers. It consists of a building comprising two separate units, either side by side or stacked on top of each other. It is often the first choice for individuals looking to combine living and rental income. This format is particularly popular in urban areas and provides an excellent transition between a single-family home and a rental investment.
Thanks to the personalized plans offered by Plan Maison Québec, it is possible to arrange a duplex in such a way as to offer maximum privacy between the units, for example by adding separate entrances or good acoustic insulation.
1.2 The triplex
Comprised of three separate units, the triplex is a more ambitious version of the duplex. It allows for more income generation while remaining relatively simple to manage. This type of building is often sought after by investors looking to maximize the profitability of a plot of land while maintaining a good balance between income and management responsibilities.
With a triplex designed by Plan Maison Québec, you can adapt the layout of the units to suit your needs—for example, reserve the ground floor for your family and rent out the other two units long-term.
1.3 The quadruplex
The quadruplex, with its four units, represents a step up in multi-unit housing. It requires a little more rigor in rental management and maintenance, but also offers a higher rental yield. This type of building can also be suitable for those who wish to occupy a unit while generating enough income to cover a large portion, or even all, of the mortgage and maintenance costs.
Plan Maison Québec offers quadruplex plans perfectly adapted to municipal zoning constraints, with functional layouts, efficient circulation, and options for integrating common areas or parking.
1.4 Multi-unit housing of five or more units
Starting with five units, you enter the category of larger income properties, often considered a real estate investment in their own right. These properties generally require a more complex legal structure (company or management firm), a larger down payment, and more advanced rental management expertise.
These projects, while more demanding, can offer higher profitability margins, greater risk diversification (thanks to a larger number of tenants), and attractive long-term valuation. Plan Maison Québec works with investors across Quebec to design well-designed, large-capacity multi-unit housing units that meet strict Construction Code standards and are optimized for the rental market.
2. Financial benefits of building a multi-unit building
2.1 Rental income and mortgage amortization
The main motivation for building a multi-unit building is to generate rental income that can cover the mortgage, taxes, and other expenses. Furthermore, with the Canadian tax structure, certain expenses such as interest, property taxes, insurance, and maintenance costs are deductible.
This allows an owner-occupant to live in one unit and rent out the others to significantly reduce their monthly housing costs. This is a powerful strategy for achieving financial independence more quickly. Many Plan Maison Québec clients have been able to pay off their mortgage in just a few years thanks to careful planning and well-thought-out plans tailored to the rental market.
2.2 More accessible down payment for plexes
When you live in a unit yourself (owner-occupied), down payments can be more affordable: around 5% for a duplex and 10% for a triplex. This threshold is significantly lower than that required for a single-family home.
This affordability allows many first-time buyers to enter the real estate market in style, while laying the foundation for sustainable passive income. At Plan Maison Québec, we encourage buyers to consider this strategic path, especially when they already own land or want to optimize an existing plot.
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2.3 Acceleration of loan repayment
Rents collected can contribute to early mortgage repayment, reducing personal financial burdens while building a valuable asset.
By building a well-designed multi-unit building with attractive and functional units, you increase the value of your property while benefiting from the power of real estate leverage. A well-thought-out plan—like the ones we offer at Plan Maison Québec—ensures that every square foot is used efficiently, making your investment even more profitable.
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3. Disadvantages to consider
3.1 Shared life and decreased tranquility
Being an owner-occupier of a plex means sharing your life with your tenants. This can impact your privacy, with potentially more noise, regular requests, or inappropriate situations to manage.
This is a point often overlooked by new investors. For example, plumbing or electrical problems in a unit can quickly become your responsibility at any time of the day or night. It is therefore essential to provide a clear separation between common and private spaces, an element that Plan Maison Québec systematically integrates into its personalized plans.
3.2 More complex rental management
Managing multiple units involves more responsibilities: finding quality tenants, managing repairs, ensuring compliance with municipal regulations, etc. Without a manager, this burden can quickly become overwhelming.
That's why we always advise our clients to include a dedicated tool storage space or a technical room in their multi-unit plans. These details, while seemingly minor, greatly facilitate daily management and avoid many frustrations.
3.3 Obligation to comply with strict rules
If you wish to take over an occupied property, be aware that specific conditions apply (tenant age, length of tenure, income criteria, etc.), and regulated deadlines must be met.
Quebec housing laws strongly protect tenants, and any lease takeover or modification project must be carefully considered in advance. Plan Maison Québec works in collaboration with legal and financial experts to ensure your design choices comply with standards and minimize future conflicts.
3.4 Initial investment and financial contingencies
In addition to the down payment, you must anticipate miscellaneous expenses: notary fees, welcome taxes, and, most importantly, a fund to cover unforeseen events (vacancy rates, major repairs).
A good construction plan also helps prevent these unforeseen events. For example, by opting for durable materials, efficient insulation, and energy-efficient design, you reduce the risk of costly repairs. Plan Maison Québec incorporates these elements from the design phase to secure your investment.
4. Construction of a multi-unit housing project: a supervised process
This type of project requires specific permits and compliance with strict standards. It is therefore essential to consult your municipality to learn about zoning regulations and obtain the necessary permits. Topography, land area, and the number of parking spaces are also determining factors.
Plan Maison Québec ensures that your plans comply with all the requirements of the Quebec Construction Code, working with urban planners and brokers.
5. When is a multi-unit property relevant for you?
Building a multi-unit property can be an optimal path to homeownership and low-down investment. If you're looking to reduce your housing costs while consolidating a profitable asset, this is an attractive solution. However, if you value your privacy or are concerned about rental management, it's better to consider other options.
With personalized support from Plan Maison Québec, you can determine whether this type of project truly matches your profile and objectives. Whether you're a first-time buyer or a seasoned investor, our services are designed to offer you a clear, structured, and tailored framework.
Conclusion : building a multi-unit dwelling, the advantages and disadvantages
Building a multi-unit building offers significant financial potential: rents, tax deductions, and return on investment. However, you must carefully assess the increased responsibilities, legal requirements, and your ability to manage such a project. At Plan Maison Québec, we understand your challenges: from choosing the type of plex to land selection, including financial planning and technical support.
Our team offers functional, tailor-made plans, adapted to your budget and current standards. Are you looking to build a duplex, a triplex, or a multi-unit building? Plan Maison Québec is your trusted partner to guide you through every step, from the initial sketch to the project's completion.
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