The woman was warned by the city of Kelowna, British Columbia, two weeks ago that the shed was not suitable for habitation, CBC News reported Friday.
City spokesman Stephen Fleming described the small building as "a standard type of metal garden shed that you'd get at your local hardware store. It certainly doesn't look like a place for people to be living in."
The woman ran an electric power cord from her house to the shed.
"We didn't want anything to happen to the occupants because of where they were living, because it was substandard," Fleming said.
The homeowner, whose name was not reported, was told she could rent a room in her home to the couple, or they could go to a homeless shelter that has room for their dogs, Fleming said.