When you think of basement flats, you may think of low-ceilinged, dark, vulnerable to flooding, and dank places. However, it isn’t tough to convert your basement into profitable legal flat and earn some extra income. Before you put your apartment for sale, or consider renting it out, you need to consider few things to make it profitable.
Protect your house, and renters with these tips. Firstly, you need to safeguard your plot and the following ideas will help you in welcoming your tenant to your basement flat.
Checking Legal Stipulations for Renting Out a Basement Flat
Before you welcome renters to your basement flat, ensure that it meets all standard safety regulations. You need to check out with your region’s municipal department and tenant-landlord legislation in your city, ensuring that you’re eligible to manage and provide a legal basement flat in your house.
Renting a Second Basement Flat
For a second basement flat to qualify as an authorized and legal unit, the apartment must meet certain conditions, such as property standards, occupancy standards, residential zoning needs, fire and electrical codes, and safety and health requirements. Government declared that they would legalise basement flats, if they meet fire code standards, ensuring that all basement suites are constructed as per safety standards.
Hydro and local fire departments should give you a clearance certificate, confirming the safety of the apartment. Once you get the legal certificate, your flat could be registered with the city.
Check the City Bylaws
Anyone seeking permission for legalizing or creating basement should be familiar with the city’s building code, electrical code, fire code, property standards, and zoning bylaws.
If you fail to obey your area’s bylaws concerning second suites or basement flats, then you may have to pay hefty charges, if municipal determines that your flat is an illegal unit.
Each region has its own bylaws and you can visit the government’s site to see what the bylaw for your particular area is. Each area has its own tenant-landlord relationship and laws; hence know your responsibilities and rights, before renting your apartment.
If any major changes are made to your apartment, such as alteration in occupancy, renovation, or new addition, it is imperative to notify your house insurance firm. If you do not inform them, then there is chance that the insurance provider may reject your claim, like fire or flood, which could result in a loss of insurance coverage. You need to know the consequences of adding a basement flat and how it would impact your insurance coverage.
It is advisable to compare quotes with other house insurance companies and choose the best one, which offer better rates for houses with a basement rental. It’s certain that coverage risk will increase, leading to your house insurance when you are giving it for rent. To be on the safer side, make renter’s insurance coverage mandatory.
Preparing to Rent Out the Basement Suite
If your basement suite is legalized, notify your insurance firm, and after all other legal formalities are taken care of, you can then rent it out with complete peace of mind. Find the right renter and being diligent and careful can save you from frustration at a later stage.
Conduct background check and ask for references from the previous property owners on your potential tenant, and ensure that you let out the property to the right person.