Income Properties

17 Jul

income_propertiesDoes your home have an empty basement with outside access?  Then you could soon be the owner of an income property.   Adding income properties can be a great source of additional monthly income as well as a good long term investment.  Income properties can include an income suite or apartment in your basement or can be a separate rental property.  When you want to become a landlord by adding an income suite here are the things you should consider:

  • When adding an income suite to your existing home you should first learn about the zoning requirements of your area.  If rental properties are allowed in your neighborhood you will need to begin the process of getting the appropriate approvals for the income suite.
  • Map out the space you want to convert to a rental space.  If your basement is finished you should consider the layout options that work with what is already in place.  If the basement is an empty space you can consider a variety of different layout options.  Work with an architect or contractor who can help you create blueprints or plans for each layout option.
  • Consider the costs of construction or remodeling for each option until you determine which option will best meet your financial needs as well as offer the most potential as an income property.
  • Once you choose the plan you can begin construction.  You can decide whether to work with a construction company or if you want to do the work yourself.  Remember that all of the changes that you make need to be to code and should have the appropriate inspections completed.  The construction phase of creating your income property will most likely be the longest.  When designing the space remember to choose neutral finishes that will appeal to a majority of renters.
  • With the construction of your new rental space complete you can begin to advertise the space for rent.  To determine how much you should be charging for rent you can have an independent appraisal done.  This will help you determine what a rental amount is as well as give you the new value of your home with the income property addition.
  • Determine if you want to manage your rental property yourself or use the services of a rental management company.  When you are talking to management companies, ask for a free management quote.  This quote should give you the costs that the management company charges as well as details about the services that they will provide.
  • Begin accepting rental applications and choose a tenant.  The final step of turning your unused basement space into a rental property is to choose a tenant and let them move in.  You’ll soon be collecting your monthly rental fee and your unused space will begin working for you.

Adding an income suite to your home is a great way to increase your monthly income as well as create an investment for the future.  If you have empty space in your basement and the willingness to become a landlord, the potential is there to turn that empty space into an income suite.

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