Additional Dwelling Unit Charges for User Rates
Properties with an additional dwelling unit are subject to extra sewer and garbage charges. These properties also receive different water consumption thresholds. For current rates, please visit the Billing Rates page.
Being billed for an additional dwelling unit does not mean the unit is officially legal or authorized. For more information, refer to the Citizen's Guide to Secondary Suites or contact Building Inspections at building.inspections@nanaimo.ca or 250-755-4429.
What is an Additional Dwelling Unit (ADU)?
An ADU is a separate living space inside or on the same property as the main home. This definition, for the exemption purposes, excludes accommodations for the travelling public, such as Airbnb and Vrbo.
Features of an additional dwelling unit include; but are not limited to: kitchen-like facilities, private washroom/laundry, separate entry. Common examples of an ADU:
- A secondary suite within the principal dwelling
- A carriage home (accessory building)
Exemption from Additional User Rates charges
Owners of residential properties with an additional dwelling unit may apply for an annual exemption from the additional user rates charges for one of the following reasons:
- Additional dwelling unit is not being rented*;
- Additional dwelling unit is occupied by an immediate family member*; or
- Additional dwelling unit is not used as a separate residential unit*;
- Additional dwelling unit is decommissioned (removed with a Building Permit).
*annual declaration will be required
If an annual declaration is required, you will receive a letter from the City prompting you to reapply for the exemption, assuming you still meet the eligibility requirements. Annual exemptions are effective January 1st of the following year, if they are received by the due date. If you do not receive correspondence from the City by early November, please contact us.
Applying for an Exemption
To apply, complete and submit an Exemption from Additional User Rates Charges application. If approved, the additional charges will be removed from future billing statements and the standard cart set may be automatically exchanged based on the exemption application status.
If you are renewing, or applying for the exemption as part of the annual process, please complete the Annual Exemption form.
The standard cart set for one dwelling unit is:
![]() | 120L garbage (can be upsized to 240L for an additional daily charge) |
![]() | 120L organics (no upsize options available) |
![]() | 240L recycling (can be upsized to 360L at no additional daily charge) |
For more details regarding the cart sets, please visit the Cart Exchange page.
IMPORTANT:
- If the property is not the owners' primary residence, and/or the property is rented to anyone other than an Immediate Family Member (as defined above), or offered as a short-term rental, an exemption is not permitted.
- If you intend to rent the ADU any time during the calendar year (January 1 to December 31) to anyone other than an Immediate Family Member, please do not apply for the exemption.
Contact Us
Last updated: August 13, 2025
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