You may be required to comply with numerous codes related to health and safety, as well as possibly obtaining zoning and rentals tax permission, depending upon circumstances. [2] X Expert Source Nathan MillerProperty Management Specialist Expert Interview. 15 October 2018. Don’t forget to check your homeowner’s association bylaws, as well. In many cases, they have the final say over what is and isn’t allowed in the neighborhood. You should be able to pull up your neighborhood homeowner’s association bylaws online through your State Secretary’s website. If you’re having trouble finding them, ask a neighbor to supply you with a printed copy. If you attempt to rent out your basement in an area where housing laws don’t permit it, you may be putting yourself at risk of receiving a hefty fine. [3] X Research source
In most places, residential basements must have ceilings that are at least 6. 5–7 feet (2. 0–2. 1 m) in order to be considered legally inhabitable. A health or building inspector may require you to install and maintain proper exits and ventilation.
Local regulations of rentals may also require installation (if not also inspection) of proper smoke alarms and carbon monoxide alarms. Renting a basement can be a good way to make a little extra money, but it can quickly become an expensive project if your space isn’t up to code. In many cases, renovating an unfinished basement can cost $100,000 or more. [4] X Research source
If there are any problems with your basement that you’re unwilling or unable to fix at the moment, make a note of them and be sure to mention them in the listing description later on. Serious issues, such as water damage or faulty wiring, should be resolved before you go any further in the rental process.
Use hydrogen peroxide, diluted chlorine bleach, or trisodium phosphate (TSP) to remove stains from concrete floors. [7] X Research source While you’re cleaning up, be sure to also find a new place for any items that you don’t want your renter to see, such as stored boxes or personal belongings.
Keep an eye out for dead bugs, droppings, or other unusual debris that might indicate a possible infestation. It can take anywhere from 5-6 hours to an entire week for toxic fumigation gases to dissipate, so make sure you schedule your pest control services long before you actually list your basement for rent. [9] X Research source If your basement is on the smaller side, you may be able to fumigate it yourself using a commercial chemical fogger. You can find these devices at most hardware stores and home improvement centers.
Your rental listing might say something like “Cozy 800 sq. ft. basement apartment with brand new carpet, kitchenette, and half bath w/ shower. Unit has its own ground-level door for private entry and exit. Main living area features a pleasant view of the woods. ” Avoid overselling your space with exaggerated phrases like “Spacious, open layout” or “Luxurious wall-to-wall carpet” if these descriptions aren’t accurate. If someone comes to view the room and doesn’t agree, they may decide to look elsewhere.
Capturing clear, high-quality images will give renters a preview of exactly what they’ll be getting. It will also reflect well on you as the landlord, as it shows you have nothing to hide. If your basement room comes furnished, rearrange items as desired to “stage” your photos and give the space more visual appeal. There’s no single best number of pictures to put up along with your listing. Generally speaking, however, the more you post, the better. [12] X Research source
Basement apartments are typically priced lower than standalone lodgings, as they tend to be smaller and don’t offer as much in the way of privacy and independence. Make an effort to price your basement room competitively. It can be tempting to ask for more since it’s a part of your home, but try to keep the conditions of the local housing market in mind and be sensitive to the needs of your renter.
One compromise might be to charge a low, flat rate (say, $50-100) for utilities that will cover the better part of your tenant’s usage while also reducing the strain on your own wallet.
Consider setting up a new email account specifically to handle your rental business if you don’t want to give out your personal address to strangers. [16] X Research source
Airbnb is another convenient option if you’re more interested in short-term rentals. If you want your listing to reach as many eligible renters as possible, you could even take out ad space in the classifieds section of your local newspaper. [18] X Research source Be aware that some well-known property rental sites, such as ForRent and Apartments. com, charge users a fee to post their listings.
When it comes to finding a suitable lodger, you’re entitled to be as choosy as you want to be. After all, it’s your home, your property, and your rules.
Most investigation companies charge around $15-40 for a standard background check. It may also be a good idea to get in touch with the renter’s employer directly to get a personal assessment of their character.
In order to request a credit report, you’ll need to know the renter’s full name, date of birth, social security number, and current address. Some forms may also ask for the names of their current employer and landlord. [22] X Research source While a couple missed payments doesn’t necessarily mean a person is untrustworthy, it’s not recommended that you rent to anyone who has a history of serious financial problems like bankruptcy.
Read through the housing and real estate laws governing your state or territory to find out how much money you can legally demand for a deposit. Most of the time, it will be 1-2 months’ rent. In some places, you may be able to ask for as much as you think is fair. In places that regulate security deposits, there may be detailed rules regarding your obligations for proper documentation and handling of any security deposit. You may accidentally forfeit your right to claim (or even hold) the deposit if you fail to follow the rules.
Search for templates online that you can modify to suit your exact needs and conditions. If you’d like a little help drafting a formal lease agreement, consult a real estate attorney for assistance.
Some other points you may want to go over with your renter include your policies on smoking, parking, illegal activity, noise, keeping doors locked, and having dates or other guests over. Ideally, you should make non-negotiable guidelines part of your formal lease agreement to ensure that they’re enforceable.
