If you’re lucky to have a basement in your house, you can earn extra income by renting it. To do so, you need to know the tips on how to rent basement spaces. However, you should only borrow the basement if you are not planning to use it soon.
Most homeowners usually use basements when their family needs increases. Some people have also become landlords in their own homes by renting out basements. In this guide, we’ll look at the tips on how to rent your basement without a struggle.
How to Rent Basement Spaces
Many homes usually have incredible basement spaces, including houses for sale in Stouffville. When you purchase such homes but rarely use the basement, you can rent it out to prospective tenants. Here are the tips on how to rent out a basement.
1. Know Your Neighborhood’s Zoning Laws
Before renting out your basement, follow the legal procedures set by the local authorities. While most cities allow you to do whatever you want with your house, some may restrict you from renting out your basement.
If you don’t know any zoning laws in your neighborhood, you need to inquire from relevant authorities. Some of the most popular zoning codes include:
- Maximum number of dwelling units in a parcel
- Maximum number of residents in each home
- One household per home laws
- Additional requirements for houses with tenants
2. Designate a Separate Entrance
A basement without an entrance from the outside is not ideal for renting. If you cannot access your basement from the outside, you need to build a separate entrance to help you maintain privacy. Don’t make the mistake of using the same door with your tenant.
Thankfully, most homes have built-in doors that provide direct access to the basement. If your basement has no outside entrance, you can install one, but it can be very costly. To avoid such costs, you need to buy a house that already has the door.
3. Prepare to Become a Landlord
Are you ready to be a landlord? Being a landlord comes with many responsibilities, such as managing the property. You’ll have to maintain your tenant’s yard, collect rent, and repair all the damages. Thankfully, a property manager can help you with the tasks.
Even when hiring a property manager, you need to have desirable qualities of a landlord. You should be friendly, firm, and fair. However, you shouldn’t become too close with your tenant to the extent that you’ll find it quite challenging to enforce rules.
4. Upgrade Your Basement
It’s no doubt that most basements usually act as storerooms, making the condition less livable. It will be wise to clean up your basement before renting it to prospective tenants. Move all the things you’ve been storing in the cellar to another storage facility.
You must also remodel the basement by adding essentials like a bathroom and a kitchen. While doing that, you must ensure that the basement’s plumbing is well-fitted. Replace all the corroded and leaking pipes.
5. Create More Time for Renovations
Renovating a basement is not a walk in the park. It’s a stressful and time-consuming task that requires proper planning. Having that in mind, you need to allocate enough time for the exercise, taking into account the time for marketing the property.
Marketing your property after renovation involves a lot of things. You have to make the house appealing to prospective buyers by taking high-quality photographs. You must also visit and screen all the potential tenants to find one with the most favorable deal.
6. Increase Natural Light in the Basement
Many basements usually have inadequate lighting, necessitating the need to add some natural light before listing them in the market. Since everyone loves natural light, adding a few windows to your basement will make it more comfortable and attractive.
If your basement is a bit far from the ground, you can install small windows in each room. However, basements with large windows are always better since they can also serve as emergency exits. Window wells are also incredible for basement apartments.
7. Notify Your Home Insurance Company
If you pay insurance premiums to cover your home against losses and damages, make sure that you inform your home insurance company. If you fail to do that, the company may not reimburse you for any losses caused by the tenant renting your basement. The insurer may defend themselves that you never informed them about the tenant.
Turning your basement into a rental suite is one of the most profitable investments. Now that you know how to rent your basement, you can start by cleaning it up and removing all the items you’ve been storing there. Upgrade the bathroom and kitchen to make the suite more attractive to high-end tenants.