While owning your home is a dream for most, it can be expensive. Indeed, a house of your own comes with a list of costs a mile long, including a mortgage, taxes, insurance, and – of course – repairs for anything wrong. That’s why many homeowners look for ways to help alleviate their expenses, and one way to do that is by adding a revenue-generating suite to your home. If it’s legal in your area, adding a revenue-generating suite can answer overwhelming debt, allowing you to pay off that mortgage more quickly or finance improvements and other things your home needs.
The first thing you’ll need to determine is whether or not your neighborhood or development allows you to have a rental suite on your property. Some do. Some don’t
If you are permitted to build a suite for generating revenue, there may be certain restrictions attached to having it approved, like making sure it has its own private entrance or a full kitchen. Some communities may demand that you only rent your suite in increments of 6 months or more as they don’t want short-term renters coming in and out of the development.
If you live in a community with a homeowner’s association, they should be able to supply you with the information you need. If you don’t, you’ll likely have to ask the local municipality for rules about renting out a suite that’s part of your property.
Don’t start building until you have all the facts. However, if you’re already speaking to a builder about this, they may already have the information you need, saving you plenty of time and headaches gathering the details.
But does a revenue-generating suite make sense financially?
If you’ve learned that the laws in your area allow for revenue-generating suites, you’re ready to take the next step!
Now it’s time to consider how you will add this suite to your home, where it’s best located, how much you wish to spend on the project, and how much rent you can charge. All of those things are important, but determining whether the rent you can ask for the space will offset the cost of building is probably the most essential information you’ll need to know. Will it take just a few years to recoup your money or far longer? Those numbers can help you decide whether this is a worthwhile investment.
What should you include?
So, you’ve got the money to proceed with the build and determined that it will make sense in the long term. You’re ready to go, so now it’s time to think about the suite, how you will lay it out, and what you will need to include to make it attractive to renters.
Here’s what the ideal rental suite should include:
- A separate entrance so that renters are not traipsing through your house
- A living area
- A kitchen
- A bathroom
- A bedroom (If you make it a “studio” suite, the living room and bedroom can be combined.)
- Storage space
- Laundry facilities (This is ideal though not always possible.)
- Parking space(s) for your renters
So, where will you put this suite? Some homeowners opt for a currently unused basement, which can be ideal, especially if you can create a separate entrance. It may not work well for older renters, but it should be fine for those who can climb up and down if needed.
You can also add to your current home if you have the space and budget. This can work well, but you’ll want to ensure you situate the suite where it is not intrusive to your life. Plan the layout carefully with your builder to ensure you insulate the walls and floor to reduce noise.
If you have a large property, you can also build a separate unit to use as a revenue-generating suite. (Again, there may be restrictions about this so check with your municipality.) Your builder can design something that matches the character of your home so that it looks cohesive, and you can situate it in a location where it impacts you the least.
Trust The Professionals
Every situation is unique, so take some time to sit down with the experts at Bowline Construction to determine the options that might be best for you. At Bowline Construction, we’re experienced in revenue-generating suites, home renovations, additions, and new builds so that we can do the job, no matter your choice. For more information or to schedule a consultation, call us at 778-808-3725.