Everything You Need to Know About Buying a Restaurant With an Apartment

03.24.22 | Business Planning

Choosing a space for your new restaurant comes with plenty of considerations beyond layout or location. In some cases, buying a restaurant means buying an apartment too. 

In Ontario, many buildings that are home to eateries also feature attached residential units. These mixed-use properties can open up a world of opportunities both personally and financially. Here are some things to consider when buying for a restaurant with an apartment. 

Looking to buy your first restaurant? Check out our ultimate guide here. 

You Can Live On-Site

Staying close to your restaurant by living onsite is a great way to save both time and money. No commute means extra time at home before heading to the restaurant. Not to mention you’ll save substantially on gas or transit expenses. As your own landlord, you’ll also be protected from the province’s rising rental costs. 

A great accountant can also help you find ways to save on your personal taxes by ensuring you and the restaurant are in the best possible bracket. Having a home office may also allow you to write off some renovations or improvements. 

The Canadian government has made new pledges to support small businesses in 2022. Learn more about these benefits on our blog. 

Opportunities for Extra-Income

If you prefer to stick to your current home, finding tenants for your apartment can be an excellent investment opportunity. Renting out your apartment means passive income and with Ontario’s steadily increasing rent averages, this income is likely to accelerate over time. A great accountant can also help you take advantage of the many tax benefits that come with owning a rental property. 


Ready to start a restaurant? Check out these resources. 


Finding Great Tenants 

When it comes time to find someone to live in your apartment, being selective is extremely important. A responsible, financially-stable tenant will not only offer you greater security on your investment but also minimize the stress that comes with the day-to-day of being a landlord. On the other hand, a bad tenant can make managing the property feel like a full-time job or even jeopardize your returns to an extent. 

Setting up a focused application process is a crucial step when it comes to the success of your investment apartment. An experienced agent can guide you through this process and help you find the best possible tenant. 

Being a Landlord Takes Time

As a restaurant owner, you’ll be busy. Managing a residential property as a landlord takes both extra time and effort in addition to running your business. On top of communicating with tenants, you’ll be responsible for maintenance and repairs. Before you rent out your apartment, ensure you’re not biting off more than you can chew. 

If you’re concerned with being able to keep up with your landlord duties, you can also hire a local property manager to take them on for you. Hiring a property manager is a great way to free up some of your time, however, it will mean more expenses upfront. 


Looking for more information about mixed-use properties or being a landlord?


Ready to begin your search for the perfect space? Reach out to learn how we can help.