Get Extra Income From Your House: Basement Remodeling

Maybe you haven’t thought about a basement remodeling. But do you know that if you need help paying your mortgage or you just retired and need extra income to complete Social Security, you can get extra income from your own home? How about renovating and renting your basement?But you need to know what you are getting yourself into. It takes more than a coat of paint and new carpeting to make your basement an apartment suitable for rent.

Get started on basement remodeling

Before starting the remodeling plans for what is called an ADU (Accessory Dwelling Unit), make sure you will meet zoning, building codes and restrictions for :

- Drywall
- Insulation
- Wiring
- Plumbing
- Driveway

Yes, a driveway or other access will be necessary. Your tenants and yourself (including your family and friends) will need to have their privacy so you may have to build a private access, an extra entrance or extra driveway in order to accommodate everybody. You may need a building permit in order to do so. Most municipalities do not require a special permit for driveways if they meet certain conditions, but you need to check with your town as well as your homeowner’s association.
Basement remodeling for the purpose of rental is more complicated than transforming the space into a family room. The scope of the project calls for professional advice and help: an equipped kitchen and functioning bathroom mean bringing in utilities and hooking to sewer.

Will windows need to be added? If you go for a 1 bedroom (or more), walls will go up. HVAC will more than likely be a topic (and a requirement for added comfort). And be aware that renting a separate unit with kitchen and bathroom, will subject you to municipal rules about the conversion of a single-family home into a multi family home.

Do your homework before renting your basement

Before tackling that kind of project you might want to consider your options: long term lease or short term rental such as the ones offered by airbnb.

You also have to decide between renting a furnished basement or unfurnished.

Check the market, read the classified pages or go online. You want to set your price right according to the amenities you offer, the location, if the utilities are included, even whether you will offer cable and internet…

Decide on the smallest of details, such as will you accept pets?

Call your insurance agent, you may want to buy an umbrella liability policy. Yes the extra income is taxable but the expenses of basement remodeling and insurance are deductible.

Once all those questions are answered, and you have learned about landlord-tenants laws,  then you can look forward to signing your first Rental lease agreement. Basement remodeling into a rental unit is a great way to pad up income, but it also means you will have strangers living in your house, albeit independently. Make sure this is right for you and your lifestyle.

As a full-service construction and remodeling company in San Diego, Collom Construction possesses the resources necessary for a successful project. They deliver products of quality craftsmanship and work with you to meet your needs and respect your budget.

Give them a call today to set up an appointment for a free quote.