There are many benefits homeowners have found from basements apartments. Here are five of the best:
1. Income. Basement apartments are a great way to create extra monthly income. Depending on your mortgage and rental rates, you could cover up to 75% of your monthly mortgage with basement apartment rent. And while creating an apartment requires initial investment in beginning, very little effort is required to maintain an apartment month-to-month.
2. Add value to your home. Anytime you add more finished square feet to your home, you are increasing its value. Many real estate agents say that finishing a basement offers the best per square foot value of any remodeling project. Potential buyers will usually see the value of a basement apartment as much as you do, which sets your home above others while it’s on the real estate market.
3. Tax advantage. Many people don’t know this, but there are tax advantages available for having a basement apartment in your home. Essentially, you are able to depreciate a portion of your home on your taxes. For more information about this option, talk to your tax accountant.
4. Flexibility for family. Many homeowners find significant value in basement apartments because they allow flexibility for housing for family members and friends. Parents can rent the space to their single or married children. Children can rent the space to their parents or in-laws. Aside from that, having a basement apartment to fall back on when family or friends are in town is a major benefit.
5. Security. By having more people living in your home, you increase your home’s security level. There’s a higher chance of someone being home to deter burglaries. Additionally, when your family is out of town, your tenants can keep an eye on your house while you’re gone.
Is Your Rental Unit Legal?
No matter how attractive your rental space is, it must meet codes. In most areas, you need a business license, which guarantees that a building inspector will examine your property to make sure that it is considered habitable and safe. As a landlord, you may be subject to future inspections.
If you try to rent out space in an area where it is not permitted, or if your unit does not meet local codes, your space will be considered illegal. If you violate local law, you can be fined, told to stop renting, evict tenants, and even be sued.
Legal Requirements for a Rental Unit
While the specifics vary by area, a rental dwelling unit must meet the following criteria and more:
-Unit is structurally sound
-Plumbing, electrical, and HVAC and other mechanical systems must be properly installed and maintained to remain functional.
-Stairways must be properly constructed and located, while having a consistent rise and appropriate stair treads.
-Minimum bedroom floor area meets codes.
-Ceiling height must meet codes.
-Proper exit must be in place that allows separate and easy access to the outside to tenants.
-Bedroom areas must have proper egress windows with appropriate windows.
-Fire rated barriers must be in place, as well as smoke, carbon and fire alarms.
-In order to get approvals from the city, you will need to provide plans or drawings of your rental space.
Desirable Tenant Upgrades
To attract tenants, there are some other upgrades you should keep in mind to make the space not just functional, but also desirable:
-A kitchen or at least a kitchenette with a sink, fridge, stove, and counter space is needed for tenant convenience, as well as to prevent the tenant from using potentially unsafe makeshift cooking appliances.
-An upgraded bathroom that maximizes the available space, has bright lighting, and either tub and/or shower.
-Lighting upgrades to compensate for diminished natural light make the space more inviting and modern.
Find a Professional for Basement Remodeling
If you are considering converting your basement into a rental unit, it is important for you to do your research and hire a competent contractor to complete the work. Professionals who specialize in renovation are familiar with the building codes and know how to create a beautiful space within budget and within code to allow for a quick rental.
Around The Home Services can help you turn your basement into a lucrative rental unit. Contact us today at 289-404-6157 for a free consultation about creating a rental unit
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