Have you been treating your basement as a linen closet so far? Well, transforming your basement into an apartment can fetch you an impressive ROI. While many households turn these spaces into garages, storerooms, or even playrooms for their kids, converting these spaces into apartments would be a logical decision.
You might be wondering whether or not it would be worth channelizing your funds for basement renovation. In case you decide to invest in a renovation, you can carve an apartment out of it. A finished basement would add value to your property. Besides, when you rent out the basement, you can earn the investment back within a few years.
You can learn more here about the basement renovation cost and seek professional advice before proceeding.
How Can Basement Renovation Add Value To Your Property?
Your basement has plenty of space in terms of square footage. Properly renovated, it can serve as a complete living space. In case you are someone who rarely uses this space, transforming it into something value-oriented would be a profitable decision.
Have a look at the prime benefits of converting your basement into an apartment.
1. Additional Bedroom
You can eventually increase the habitable floor space by finishing a basement properly. This space would eventually end up accommodating one or two additional bedrooms. For the space to qualify as a bedroom, you need to integrate egress in two forms.
Besides, you may also have to integrate a closet into this space. You may also install separate heating and cooling systems in these apartments. When you separate the utilities of the basement and apartment, you eventually split the energy and other bills. This would ease up the process of renting out the property.
2. Extra Bathroom
You may also add an extra bathroom to the basement to make it a complete rental suite. Having two bathrooms on your property would be highly beneficial. Besides, get adequate plumbing done in the bathroom to make it properly functional.
It is logical to get the bathroom tiled, considering the value you can obtain through rent. Although these elements would add up to the overall cost, it pays to integrate these features into your basement. After all, you would love the lifestyle in case you are personally using the space.
3. Dealing With Zoning Restrictions
You might face zoning restrictions based on the lot size, which can eventually restrict you from adding space to your property. Besides, you might not be allowed to expand the property, as it would make the house encroach over your neighbours. In case you own a two-storied home, you might face limitations on vertically increasing the space too.
Under these situations, utilizing your basement space serves as an excellent remedy. With this approach, you can integrate functional space into your property without messing with zoning restrictions.
4. Impressive Return On Investment
Although in some parts of the country basements are not considered to be livable square footage spaces, you can earn a good ROI from these areas. On average, you can earn a return of 70% to 75% of whatever you invest.
For instance, spending around $10,000 on home improvements for the basement would lead to a $7,000 increment in property value. Eventually, you would get a good resale value of the property, given that you’d also be utilizing the basement for personal purposes.
5. Income Property
You may be interested in flipping an investment property quickly or use the basement as multifamily. In any case, renovating your basement into an apartment would ensure a steady rental income. However, there might be some municipal legalities that you need to meet.
For instance, you need to adhere to the local fire codes for any living space. This implies that you should have two forms of egress and one form of entrance. Besides, some places require a dedicated space for parking for each rental unit. Before using your basement as an income property, make sure you familiarize yourself with the local codes.
Now, if you are planning to sell your property, this rental unit would draw prospective buyers. People interested in lightening their mortgage loads would particularly opt for these homes. This is because the owner would rent out the basement and earn a part of his monthly mortgage from this space.
6. Adding Guest Or Recreational Space To Your Home
Completely constructed basements may not be counted when you calculate the overall square footage of the property during resale. However, there are prospective buyers, who would find a finished basement valuable as it would add a usable area to your property.
Instead of having a dark and sterile basement, it makes sense to transform the space into your kids’ play area. Besides, you can use it as a dedicated recreational or storage space as well
You may also use the basement as a guest room once you’ve adequate amenities for the same. Overall, a finished basement can add immense value to your property.
Things To Consider When You Renovate Your Basement To An Apartment
- Firstly, you need to check with your municipality to get an idea about zoning restrictions.
- Once you are sure about the legalities, consult a professional to zero in on the overall cost of the renovation.
- Next, you need to create the basement apartment floor plan. For basement apartments, you would have to create space for a bedroom, living room, kitchen, bathroom, dining area, storage, and closet.
- Lastly, reach out to a reputed contractor to integrate the necessary features and amenities into your basement.
Utilizing your basement logically can bring you several benefits. Whether you use the property yourself or rent it out, you would be the gainer. Besides, the resale value of your property would get a boost with a finished basement in place.
Now that you know why renovating your basement into an apartment is profitable, reach out to professionals such as Alpine Credits to get an estimate!