Renting Above Ground Garage

[Don Antoncich]

Hello everyone,

I have a two story house that sits on top of an above ground garage. Currently this garage is completely empty except for the walls, cement flooring and 4 support posts. I went to the city of Raleigh permitting dept. to discuss converting this to a rentable unit and was told I am not zoned for a duplex but I could make it into what is very specifically called a "Utility Basement". The city of Raleigh said the only 3 requirements for this to be a utility basement is: 1, A stairway needs to be connecting where I live and where the renter(s) downstairs would live; 2, Utilities need to be shared across the two living spaces; 3, the address needs to remain the same.

I've had contractors and engineers visiting giving me quotes and making sure the structure is sound. So far everything seems to be going well but I was wondering if anyone on BP has any personal experience with this sort of scenario in the North Carolina area. Preferably in Raleigh. 

I was wondering if anyone was in a similar situation and was able to rent the space without converting to these "Utility Basement" specifications. If so, how? Also, I have questions about how to collect and report rent earnings since this house is in my name as it was when purchased and not in an LLC.