If you’re looking for a way to make additional income, why not consider turning your basement into a rental unit? With enough square footage and a few renovations, you could get back your initial investment and continue to have extra money to use as you need it. Even if you decide that the rental option isn’t the right fit for you down the road, you can still use it to house an aging parent, your eldest child or even use it as your home office. Before jumping into this project, here are some key factors to think about first.
Make Sure It’s Up to Code
Make sure you take some time to research restrictions and bylaws to see what is legally required and allowed for renting out a basement unit. Different regions can impose different zoning laws and regulations. You’ll need to abide by these, as well as fire escape plans and other safety requirements. Knowing about these prior to beginning can save you a lot of time, money and aggravation in the future.
Consider the Cost Versus Your Budget
Any home renovation project can quickly add up if you’re not careful. To avoid overspending beyond your means, it’s important to have a clear understanding of what your basement will need, how much the project will cost and what your budget is. The cost for remodelling the basement can vary quite a bit. This will largely depend on the current condition of your basement and whether it will need a bathroom, kitchen and other essentials installed.
Keep in mind that the average ROI for a finished basement is approximately 70%. So if you ever plan on selling your home in the future, you will be able to recoup a significant amount of that investment in your property value.
Talk to a Contractor
Once you have an idea of what you’ll need and how much you can spend, it’s time to consult with a contractor. They will be able to guide you through the planning phase, all the way to completing the project. During your consultation, they will help to outline the crucial components, such as the exterior entrance, creating a functional layout, installing independent heating and cooling if necessary, plumbing and electrical systems, and adding proper insulation, waterproofing and more. This will give you a better scope of the renovation before diving into it.
Perform Due Diligence Before Hiring
Taking on a basement renovation is a hefty job, and it’s one that you want to ensure is done right. That’s why we recommend doing your due diligence before choosing who to hire. Look for a contractor with ample experience, excellent reviews and a solid reputation for delivering quality work on a timeframe that was agreed upon. A well-established and reputable contractor will be able to thoroughly listen to your needs, offer sound advice and work within the quoted timeline and budget that was agreed upon.
Plan Out the Timeframe
Basement renovations can also vary in their timeframe. This will of course, largely weigh on how much work the unit will need to get it ready and up to code. Make sure you discuss the timeframe with your contractor so you can prepare and make any necessary arrangements so that renovation doesn’t interfere with your regular schedule. In general, you should expect a basement reno to take at least ten days if it’s mostly finished and requires minor remodelling. However, if a separate entrance needs to be installed, along with plumbing and insulation, you could be looking at five to six weeks.
Compare to Other Rental Units in Your Area
It can be helpful to search for other rental units in your area to see what they look like, what they are offering or include, and how much they are charging. You can also get some inspiration for your design and layout, learn how to be strategic with limited space or gain some insight into what’s available and what you will be competing with when looking for tenants.
Give Us a Call!
If you want to transform your basement in Ottawa into a rental unit, contact our team at the Renosgroup.ca. We have been helping homeowners across Ottawa with renovations for every area of the home, including the basement. We take pride in delivering high-quality work and professional, transparent advice. We will always be upfront and honest to help our customers make informed and confident decisions for any home renovation projects.
If you have questions, concerns or need any advice on your basement project, feel free to contact us! Our team is happy to help.