Tackling a mortgage can be daunting, especially for those who haven’t done it before. Mortgages are usually the largest debt one will ever have, and it’s a long-term commitment. One option is to make the house help pay for itself by turning it into an income property. It’s a bit of a sacrifice, and isn’t for everyone. But if you’re looking for a way to make the mortgage payments less hefty, renting out a part of the home, such as the basement, is a possibility you can consider.
Save money on utilities
When others are renting, utilities being included is one of the more attractive facets of an apartment, even a basement apartment. If the homeowner pays for them, they can then charge more per month in rent and no one will be any the wiser. However, this makes it especially important to really make sure the apartment is thoroughly insulated, has green appliances and conserves energy in every way possible to lessen the overall cost to you.
Don’t go overboard
You’re not trying to sell the place at the moment, but if you intend to in the future then spending extra on the decor, flooring and counter tops would be a good investment. However, if you’re only renting out part of the home, it’s not for a return on your investment as much as it is to help off-set the cost of your mortgage payments. The space has to be livable, but doesn’t necessarily have to be overdone, and many little extras won’t bring in extra rent money. However, putting in appliances such as washers, dryers and dishwashers or installing a bathtub will create room for you to boost the rent anywhere between $25 and $50 for each item.
Do it the right way
The most attractive basement apartments have separate doors to the outside and are squared away for optimal privacy. Sometimes doing this can include costly renovations, and it’s a good idea to ensure that no matter what type of renovation you decide to undertake that all necessary permits are taken care of.
Finally, don’t hesitate to ask for references, bank statements or conduct credit or background checks like any landlord would. Renting out your home should benefit you, not turn into a nightmare.
