An income suite has two big benefits for homeowners looking to make financial headway. For one, the money brought in each month in rent can go back to paying for the renovation itself, often in a matter of months. Once that expense is recouped, the rent can be used to pay a large portion of the mortgage, or maybe provide an extra profit each month. Your home is your castle, but it can also be a source of extra income. Here are some things you need to think about if you want to create an income suite in your finished basement:
Hire a Contractor
Creating an income suite is definitely not a DIY project. For one, you might make mistakes along the way that mean the space does not even qualify as a legal income property. Even if your work is entirely up to code, it simply can’t attract desirable renters in the same way that work by a professional and experienced home renovation company like Holland Homes & Renovations can. They can guide you through the process to end up with an impressive result that makes financial sense.
According to Scott McGillivray of Income Property, you shouldn’t spend more than two years of rent on an income suite renovation. If you expect to bring in $1,000 per month in rent, this means your max budget should be under $24,000. Don’t waste money on high-end finishes like granite countertops or custom drapes. They’re pricey and it’s difficult to recoup the costs. Go with durable and attractive alternatives that have a higher ROI.
Do It Once, Do It Right
At the same time, under no circumstances should you cut corners to save time or money. Skip on insulation, and you end up with a skyrocketing heating/cooling bill. Don’t waterproof, and you end up with a mould problem that has tenants running for the hills. Hiring a quality home renovation company will ensure that the work is done right. Invest your hard-earned money in quality work that stands the test of time and attracts the right tenants. All work should pass this test: would you live in the space?
Invest in Value-Adds
If it makes sense for your budget, consider investing in value-add features that translate to higher rents and increased demand. According to McGillivray, landlords can charge $25 more for an income suite with a dishwasher, and $50 more for in-unit laundry. Other features, like a four-piece bathroom or extra parking space, will make the suite more attractive to the right kind of tenants.
For more information about creating a profitable income suite in your finished basement, give us a call today for a free no-obligation quote.