Turning Extra Space Into Income? What To Know Before Converting Part Of Your Home Into An Apartment
Generating income from unneeded square footage in your home is an excellent way to recoup some of the costs of home ownership. In some instances, this can be done by renting an existing spare bedroom to a college student or single adult, but converting a larger space into a one- or two-bedroom apartment can allow homeowners to charge a substantially higher monthly rental amount. Additionally, renting out space as a separate apartment with its own entrance offers more privacy for both the homeowner and the tenant. If you are interested in converting some of your home's square footage into a profitable apartment for rent, the following information can help.
Check with planning and zoning to ensure compliance
The first thing to do before spending any money to convert part of your home into a rental apartment is to make sure that you can legally do so. To do this, homeowners must check with their local planning and zoning board to find out what rental zoning laws are in place for their area. It is also important to verify permission with the boards who govern any applicable homeowners associations (HOAs) or planned urban development (PUDs), that may be involved.
In addition to following basic zoning laws in regards to whether or not you can legally rent space from your home as an apartment, it is important to also remember that you must also follow all existing residential building codes and fire safety regulations when designing and constructing the rental unit. In many areas, this will also mean complying with an inspection process, both during the construction phase and after the unit has been completed to ensure it is safe for occupancy.
Carefully consider the location of the rental unit
A rental apartment with an easily accessible private entrance and parking space will be able to earn a higher rental income than one that has a less desirable entrance and inconvenient or no parking. If you plan on converting a raw space, such an unfinished basement, attic, or garage, take time to examine the potential of each one before deciding how to proceed.
In addition to considering the entrance and parking, homeowners will also want to carefully consider the layout of the apartment before beginning construction. If your zoning regulations will permit doing so, designing a two-bedroom space, instead of a one-bedroom or studio apartment can be much more profitable.
To learn more about the potential problems you may encounter when converting part of your home to a rental apartment and how to address them, contact a reputable local property management company or real estate professional.