Can I legally rent out my basement?

Question

Frank Chin · Answer

I have a finished basement that prior owners completed that the city declared illegal following an inspection. The inspection was triggered by my stupidity, I had 3 mailboxes out front in a two family zone. In case you're wondering, no, I don't have an illegal tenant, I initially installed two mailboxes, mine was too small, installed a larger one below it, but didn't remove the smaller one. An inspector spotted 3 mailboxes, thought he found an illegal 3 family in a 2 family zone.

The city's beef was I didn't get a permit to do it, the complaint read "basement not in accordance to plans". Fortunately, it was livable, had the right egresses, right ceiling height, thus safe. But it had a full bath and kitchen installed, making it an illegal third unit in the house, thus a three family in a two family zone. The city's demanded the unit be removed, demanding it be converted back to an empty basement. The demolition is estimated to be $6,000 or more. If I want to rebuild it back, it will cost another $15,000.

I hired an expeditor, he appealed, and the city agreed to a less drastic solution. I proposed it be converted to a provide office, which I'm already using it as, with the bedroom being the office. The bathtub was taken out, and the kitchen converted to a entertainment bar, removing the kitchen sink and replacing it with a bar sink. In other words, minimal construction.

My solution involves spending $6,000 total, good part of it in permits, $1,400 of it drafting plans, and $1,000 in expeditor fees.

My neighbors down the street had the same basement. While it's legal to fix and rent as living space, they added the basement unit to the 2nd floor 2BR/1Ba apartment so they now have a 3BR/2Ba apartment, and in this market, commands almost $1,000/month rent more than a 2BR/1Ba. He added a staircase from the 2nd fl unit to the basement unit, and it's all done legally and accordance to zoning.

So it all depends on the configuration of space, whether to basement is safe and livable, whether you have the proper egresses. You are constrained also by local  zoning laws.

Dick Stevens · Answer

It likely won’t pass board of health occupancy standards due to egress issues.  If someone was to get hurt during an emergency because they couldn’t get out, you would be liable.

Michael Badin · Answer

@Dan cumberland  he mentions the windows because you are required to have an "emergency egress".

@Remington Lyman Yes you can rent your basement but it does depend on your basement.  I have a property that I rent the basement.  However my basement has a second exit in the rear which is what we use as our emergency egress.  If you are planning on using a window you will need to check local codes to make sure it is big enough and not to high off of the ground.  You will likely have to replace the window.

There are some things you can let slide but safety issues are not ones you want to play with.

Dan Cumberland · Answer

Hey Remington - It all depends on the laws in your area and the space itself.  If it doesn't have basic amenities... and a door... it may not be possible to do so as a living space.  But it might be possible to rent it as a storage space, office space, or artist studio.  I rented a house with an unfinished basement which the owner rented out to artists.  It worked great for him to add some extra income to the property.

But just to clarify— are you suggesting people enter through the windows?  Or is there a door?