Recently purchased duplex need advice

[Trevor Petri]

Hello all,

I purchased a duplex this year with my wife at the beginning of April. It is recently renovated has a ground floor unit and an upstairs unit. Currently the entrance way to the upstairs unit has access to the basement which is shared to both units.

My question is should I build a wall separating both units completely so that they do not have any shared area nor run into eachother unless outdoors? This would remove laundry currently for the upstairs unit as it is only in the basement. I had a plumber come out and it’s around $5k to get washer/dryer hookup installed upstairs which I may pursue but not sure if I can justify this at the moment due to not having a huge emergency fund.

I currently have a tenant upstairs which is a good friend of mine but they are leaving at the end of September so removing laundry would not hurt any current renters. I’m living in the bottom unit as well at the moment if that matters.

I’ve read several places that it’s hard to rely on both tenants to get along for the shared laundry situation to work and I want to avoid as much as that as possible. I also think the added privacy of the units being completely separate is a plus.

I know this will hurt the upstairs rent but I’m not sure by how much as this is my first property (and first real tenant). I currently have it listed for $2,100 rent (current tenant paying $1,800) 3 bed 1 bath (basement has another full bath although potentially removing that) have about 20 inquiries so far with the unit not being able to be toured until middle of September. 

Looking for advice on this and what you would do in my situation. Thank you!

[Kevin Sobilo]

Quote from @Trevor Petri:

Quote from @Kevin Sobilo:

@Trevor Petri, look at what comparable units offer. I can certainly believe a C or D class unit might not have laundry hookups or appliances. However, I suspect in most markets on site laundry would be expected for an A or B class. Based on the $2100 asking rent, I suspect you have an A or B class rental on your hands.

The issue for you may be less about sharing a space or laundry area as that isn't uncommon. The issue for you might be when you move out, there likely isn't separate water/gas/electric to service the common laundry. So, the bill would be associated with one of the units unless all utilities are combined anyways and then that issue would be moot. 

Me, I would lean towards keeping the shared laundry and working to make it as usable as possible for multiple units. Maybe extra counter space to setting baskets and folding. Maybe some signs about how to use and also courtesy. 

That was also a main concern of mine. The rentals are definitely not low class and I'm afraid with how much I'm expecting for rent it is going to become much harder to sell without at minimum on-site laundry. I think separating the units and adding laundry upstairs would be the best solution, but quite costly for me at the time being. 

You are correct that the basement is all wired to the lower unit so that would be an issue since I'm having the tenants setup all their own utilities.

@Trevor Petri, it sounds like each tenant has their own entrance to the basement. If so, would it be possible to split the basement space up and provide a second laundry room down there for the upstairs. That might be a much cheaper option because wiring, water and drain lines are likely easily accessible and the space doesn't even need to be made a finished space with walls, etc.

This could also provide the upstairs tenant with some additional storage and storage is always a plus!