Are you considering turning your basement into a rental property? Adding a rental unit to your home is a great way to earn a little extra money and help pay off your mortgage.
If you live in a house with a basement, this would be the most ideal scenario as it will be a separate living space for your tenants. Whether your basement is fully finished, partially finished or needs an entire renovation, there is a lot to consider before finding a tenant for the space.
Municipalities in Ontario all have different rules and regulations, so it’s important to check in with your local municipal planning and building departments to determine if renting out your basement is not only suitable but also worth it for you.
Legal Requirements and Zoning
If your basement is not already classified as a legal basement, there are several important and major factors you need to consider before adding a second unit, including:
- necessary building permits
- designing your unit to comply with the Building Code
- required building inspections during construction
It is important to meet planning and Building Code requirements. Doing so will help ensure that your house and second unit are legal, safe and healthy places to live.
Design and Layout Considerations
If your basement can be zoned to be a legal basement apartment, you will have to ensure it meets your municipal layout requirements, such as:
- Private kitchen, bathroom and living spaces
- Minimum or maximum room requirements
- Ensuring proper ceiling height and room sizes
- Installing separate entrances for privacy
- Minimum window requirements and size of windows
- Parking requirements
Hiring a professional contractor who specializes or has experience with building legal basements will be a key component to your overall success if your basement needs an entire rebuild or renovations.
Safety and Accessibility
Before you begin renovations or if you have a fully finished basement, make sure to bring in a certified fire and safety team who can assess the overall safety requirements your basement needs to have. This team can provide and plan for meeting safety requirements, such as:
- Location and installation of fire alarms, carbon monoxide detectors, and egress windows
- Providing safe and accessible pathways and entrances
- Meeting fire separation and soundproofing requirements
At Manage Your Property, we work with a professional and licensed fire team to ensure all of our rental properties are up to code and safe for our tenants and property owners.
Plumbing, Electrical, and HVAC
Ensuring your plumbing, electrical and HVAC systems are in good working order, safe and legally compliant is very important when creating a home for others to live in. Bringing in the right contractors who can inspect these property components will help homeowners with the following:
- Ensuring adequate plumbing and electrical systems
- Installing a separate HVAC system or ensuring sufficient ventilation
- Adding necessary utility meters for separate billing
Financing, Budgeting and Overall Investment – IS IT WORTH IT?
After factoring all of the essential factors above and how much work that needs to be done to your basement, is the overall cost worth the investment?
Homeowners should take the time to price out the entire project and figure out what the potential ROI (return on investment) will be to see if creating a legal rental basement apartment is a smart long term investment.
Homeowners should also keep in mind that unexpected expenses may occur when having a tenant living in your space such as, ongoing maintenance and repairs, property management services, etc.
If you or someone you know is considering turning their basement into a rental basement apartment and would like some support with this, reach out and we’ll be happy to answer your questions!
