# Making money of my basement!



## emalen (Oct 10, 2004)

*Making money off my basement!*

Okay, this is completely random, but hey, isn't that what "Everything Else, eh!" is about.

I just moved into my first house and the idea was that I'd rent out the basement apartment to help pay off the mortgage. That said, renting out the basement doesn't seem that appealing with me.

Anyone have any ideas to turn my basement into an alternative source of income. It's quite big and spacious and completely renovated. 

Think there's any chance I could turn it into a podcast/vodcast studio? Any one else turn their basements into something creative and interesting aside from the usual couch/giant TV!

just thought I'd ask.

Thanks,

Daniel


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## Max (Sep 26, 2002)

First off, BTW, congratulations on getting your first house!

I have no sure-fire ideas for you to do neat, innovative things with your basement to help defray mortgage payments. Just keep in mind that basement apartments, by their very nature, tend to be places renters will stay in for only a brief duration before moving on to something offering more light and less dampness. If you're fine with the very real possibility of dealing with a long succession of tenants for your basement, go for it. Not that there isn't plenty of exceptions to the rule, but... 

Perhaps you could make your basement serve as a public storage unit. You'd require have good access, of course. Lots of those around town already but they do seem to keep building them. I just vacated a makeshift artists' studio in a light industrial building in the Portlands that's likely going to be gutted and turned into a public storage facility. There's gold in them thar wire cages. I wouldn't seriously consider that route myself but perhaps you would... in any case, best of luck!


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## Macified (Sep 18, 2003)

Not to turn you away from the studio thing as a money maker but there are many things to consider in going this route.

1. Money, money, money. If you are trying to attract people to your studio you will have to have better tech than they already have at home. These days podcasting is such an easy to do thing, with such inexpensive gear that you would really have to have something special going on.

2. Your time. Another way to attract people to your studio is your talent. If you can do things better, smarter, faster than they can do, you might pull them in. But this would require that you are a trained "professional" in the field. (Hey, maybe you are, I don't know).

3. There is more to a studio than just the gear rooms. What kind of environment are you going to create to attract clients. You need to figure out where the money is and what you need to do to get it through your door.

which leads it all back to 

money, money, money. You are going to have to shell out a big pile of cash and it will take a very long to time to get it back.


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## MacDoc (Nov 3, 2001)

There is such a crying demand for decent affordable places to rent I'd highly urge you to keep it on the market and find a compatible tenant 
The lack of affordable places is killing the city.
That said you can take your time and try and find a long term suitable arrangement.

If you snag someone in the tourist industry ( airlines etc ) they are often away long periods. Exchange grad students also tend to be quiet polite and also away a lot as they are studying.

You should PM Sonal as she will have advice from experience for you.

Making sure there is no mould or damp and adequate lighting is good for your health in the rest of the house and the tenant's.


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## SoyMac (Apr 16, 2005)

emalen, congrats on acquiring your own house! :clap: 

When _my_ basement is finished, it will be _my_ recording studio / photography studio, which will drain even more money out of my pocket after the initial renos, as I keep collecting more and more gear.

Oh, you're trying to _make_ money...
Never mind. 


.


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## CubaMark (Feb 16, 2001)

Assuming you want to keep this on the up-and-up, are there any zoning restrictions that would affect your plans?


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## emalen (Oct 10, 2004)

Hey All,

Thanks for all the kind wishes and thoughts.

Just to clarify, I wasn't thinking of turning it into a professional studio or anything. Just a nice quiet space for me to podcast, and possibly rent out the space to a few friends/acquaintances for a few extra bucks.

That said, I think I'm going with the rental option. Even though I'm a little wary, it is the easiest way to make $800 bucks a month.


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## MasterBlaster (Jan 12, 2003)

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## Gazoo (Dec 6, 2007)

Turn it into a trick pad?


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## Sonal (Oct 2, 2003)

Hey, I'm a landlord--feel free to ask me questions about renting.

In any case, first understand that in Ontario, a lease means next to nothing. You can put all kinds of things into a lease, but they will be unenforceable under the law. That said, most tenants don't actually know that, so go ahead and put stuff into the lease--just know that if someone decides to make an issue of it, you've got nothing.

The Landlord and Tenant Board has a pretty good website, which is here: Landlord Tenant Board - Commission de la location immobilière They also have a helpline so you can always call and ask questions.

The biggest issue you face is whether or not your basement is a legal basement apartment--that's a issue about building codes. Biggest issues related to are fire separation and a separate entrance. Here's a list: Basement Apartment Basic Legal Requirements Keep in mind that it is possible to have what is called a legal non-conforming basement apartment, which (as I understand it, though I could be wrong) pretty much means that meets fire codes, even if the other stuff does not conform. 

That's not to say that there aren't a lot of illegal basement apartments out there (or that you couldn't rent it out as a room instead of as an apartment but typically, you get less money that way) but all it takes is one angry tenant to call in the building inspector or the fire marshall, and you will have to retrofit the place.

I actually think renting out the basement is a great idea... even if you have to put some money into making it a legal apartment, it adds value to the house because it now has income-generating potential.


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## MasterBlaster (Jan 12, 2003)

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## MissGulch (Jul 20, 2005)

Do the words "Risky Business" ring a bell? hee hee

Instead of doing renovations and/or bringing strangers into your home, you might consider beginning a side business of your own that generates income and using the basement as your office. The space would be a tax deduction, wouldn't it?


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## ErnstNL (Apr 12, 2003)

My brother has had the same tenants for 7 years in his basement apartment. Never had a problem and they even share cable and internet services. LOL.

I used to rent out an older house in central St. John's but gave it up a long time ago.
I agree with MacDoc's suggestion about grad students as possible tenants. I had a group of university students in the house that were excellent tenants. One of them did some minor renovations in lieu of rent.
My plan was to keep the rent at a reasonable level, not as income but as a means to build equity and pay down the mortgage. It worked for a while but the market was volatile and mortgage interest rates were 12% at the time. I sold the house and broke even. Lucky.

Remember to be diligent in following up on recent references. 
Be patient and make sure. Get a lease signed and make sure you have proper insurance coverage. Let them know what your expectations are as tenants. Pets on the premises, smoking etc...
I would not recommend anyone on social services or EI. 
I've had my share of problems.


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