EXPERT ADVICE
THE EXPERTS AT TRIBECCA FINANCE ANSWERS YOUR INCOME
PROPERTY AND RENTAL SUITE QUESTIONS.
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“WHY WOULD HOMEOWNERS WANT TO
CONSIDER A RENTAL UNIT FOR THEIR
BASEMENT?”
With real estate prices on the
rise, rental properties are in high
demand, especially in popular
neighborhoods. Converting your
basement into a rental suite can
make financial sense as an
income source or an affordable
housing option for young adults
or elderly parents.
“WOULD A RENTAL SUITE REQUIRE
RENOVATIONS IF MY BASEMENT IS
ALREADY FINISHED?”
Even if you have a finished
basement, some updates may be
needed in order to ensure privacy
for yourself and your tenant. This
may include ensuring the unit has a
full functioning kitchen,
bathroom and laundry facilities,
creating a separate entrance into
the suite or adding insulation
between floors for sound proofing.
You should also check local by-laws
for regulations such as number of
exits, window sizes and the like to
ensure your suite is legal. The other
item to consider is utilities. If you
do not want to include utilities in
the rental price, you may need to
make modifications to
accommodate separate utilities for
the basement suite.
BROUGHT TO YOU BY
$$$ matters
“CAN I USE A HOME EQUITY
LOAN TO ADD A RENTAL SUITE?” “HOW DO I PROTECT MY
RENTAL SUITE INVESTMENT?”
As long as you have the equity
available in your home, a home
equity loan can be used for any
purpose. This would include
adding a rental suite to your
existing home or even investing
in a second property to be
renovated into two rental suites!
If you're looking to finance the
creation of a rental suite, one
option to consider is a no
payment or interest-only option
that will allow you to complete
the renovations and begin making
payments only after the suite
begins to generate income. There
are a wide variety of options
available and we can customize a
plan specific to your unique
situation. Being a landlord is not without its
risks. It is important to do
research in advance so that you
know what your rights and
responsibilities are as a landlord.
Research the local rental market
and set your rental rates to a
competitive price. Offering a
lower rate may be tempting but it
may also attract a less desirable
tenant. Finally, make sure you
have a plan for unexpected
maintenance costs. As a landlord
you need to be able to cover
those expenses quickly. This is
another area where a home
equity loan can come in handy,
providing you with quick access
to the funds needed.