Adding rooms to a rental

[Lucas Carroll]

Hello BP,

     So, last year I picked up a 1,900 sf rental property which was a 2 bed 2 bath.  It had a large finished basement so I was able to section off two areas and make additional bedrooms out of them.   It is currently rented as a 4/2. This was done without pulling any permits, but the rooms *should* meet the requirements for a bedroom per 2016 ct building code.  I did the work and while I'm not a GC, nor did I have a GC work with me on this, we reviewed the code before building those rooms out.  The property, as a 2/2 appraised for about 180k, but comps in the area put it at about 240k as a 4/2.  In order for me to do a cash-out refinance, do I have to pull the permits and update the information with the town?  Do you suggest I get a GC out prior to permit/inspection to verify?  Or just run through it with the town and fix what they say needs fixing?  I'm intending on holding this property for a while, so I'm not concerned with listing for sale as a 4/2.  This would change the assessed value of the property and bump the taxes up accordingly as well.

Any thoughts or suggestions?

Thanks!

[Keith Fjelsted]

Lucas, As mentioned by Natalie and Chris, an Egress is an absolute must for basement bedrooms or any bedroom for that matter. Another concern is the basement finished ceiling height. Most cities require no less than 6'4" clearance, at least here in the Twin Cities. Besides these two items, did you ensure there are access points to the plumbing? Electric upgrades? When sheetrocking over the basement ceilings, we are required to bring plumbing & electric to code and provide proper access. Any framing against cement walls must be pressure treated, contain moisture barrier, and insulation. If an inspector notices any irregularities, they could require all walls be opened back up, required permits be pulled, and the necessary inspections be done. Hopefully, since you did the work, you didn't try to cut any corners. It's always best to pull the permits, especially since you, as the homeowner, don't have to be licensed. You still have to hire out the plumbing & electrical and they pull their required permits. Hope this helps and good luck.