Want to Turn Your Basement Into An Apartment?

They say your home is a liability until it starts earning money. How can you turn your house into a stream of income, do what thousands of homeowners have done and earn back your investment in as little as a year? 

Converting your basement into a separate rental dwelling. This has become a popular home upgrade that many people do to reduce their mortgage payments, or actually earn some cash that reduces other expenses. 

If you have the room for it, it’s a great idea worth considering, and it could be a huge game changer for your finances. The most important thing with this kind of home project is that it’s done right. Many people have tried to do this to earn extra cash only to end up deep in a money pit. So how do you do a successful basement-to-apartment conversion that actually increases the value of your property? Here are a few considerations you need to make. 

Choosing Your Flooring 

When it comes to flooring, don’t go too fancy or too customized, consider something neutral so it can work well with different decorating styles. According to Tri Point Flooring, a firm that specializes in hardwood installation in Raleigh, “when choosing flooring for an income-producing property, durability has to be the top priority. You need long-lasting wood flooring that’s easy to clean and manage. There are tons of options, from solid hardwood to engineered hardwood and luxury vinyl plank flooring. Choose something that can survive through multiple tenants without needing expensive fixes and repairs.” 

The Rooms 

A basement-to-apartment conversion isn’t a small renovation project. It’s a considerable undertaking that requires proper planning. Remember, you’re trying to turn this space into an attractive home space that would appeal to a renter. The goal isn’t to make this space hyper personal to your needs, but rather to make it appeal to the broadest market possible. 

The space has to include a kitchen, a bathroom, a minimum of one bedroom space with storage, a laundry room, and a living/dining area. Depending on how much space you have, you might also want to consider having an office. A home with an office space has become a huge draw for renters as many companies are working remotely, and tenants want a dedicated space for it. 

The apartment should have affordable but modern fixtures, and let some light in. You’ll definitely have to consult with an architect who can help you maximize the space, and get the most out of it. If your basement is starved for space, you can also consider doing a studio space instead. It can still appeal to renters in your market. 

The Separate Entrance 

The key to making your home and the apartment separate dwellings is to make sure they have separate entrances. This might seem like a small issue but depending on how your home is set up, you have to make sure that the person who will be your tenant actually has their own private entrance. You don’t want the trouble of them having to go into your house to get to theirs. The last thing you want is for both of you to have to intrude in each other’s spaces. The best strategy is to put the entrance on the outside of your home, so that they feel like they have their own domain. 

Permits 

Of course the most important part of doing this entire process is to make sure it’s something you should even be doing. Not every basement will be permitted for an apartment, and you need to know that before you get the ball rolling. 

Even if the space is suitable for an apartment, there are still many checks you’ll need to do. You’re making a significant change to your home and actually adding square footage, new rooms and new plumbing. All of these things require permits, permission and proper vetting so that everything is above board. This is not a home project you should attempt to do on your own. 

Budget 

How much is this basement upgrade going to cost? Knowing how much money you’re putting into this project is important on so many levels. You’re not doing this upgrade just to make your home look better, you’re doing it to earn money. This is not just about how much the actual renovation will cost, it’s also about how much you’re going to rent out the property for, and if that will be able to offset your mortgage and other expenses. Check what comparable properties in your neighborhood are, and use that to reverse engineer how much the whole process will cost. You have to make sure you actually get a good outcome so that this helps you build wealth. 

Contractors 

Your basement upgrade is only going to be as good as the builders and constructors who do the job. Your city is probably packed with hundreds of contractors who promise to do a good job, but how can you trust them? Many homeowners have entrusted their home upgrades to the wrong people and as a result, thousands of dollars have gone down the drain. 

Only choose to work with the most reputable and trusted contractors who are known for good workmanship. Before you make your decision, do extensive research, look at their reviews, see photos of the work they’ve done and even ask past clients. This is a huge project that has to be in the right hands, so don’t be afraid to do your due diligence. 

Upgrading your home to turn it into a stream of income is a project worth taking on, if it’s done correctly. Imagine that you have thousands of dollars in monthly rental income right underneath your feet. Wouldn’t you want to take advantage of it? 

Make sure you understand what you’re getting into first. Consult with people who are in the know, make the investment wisely, and take your time. This could end up being one of the smartest investments you can ever make. You could easily catapult yourself into actually building wealth, and put you and your family in a much better financial position for years to come.