Duplex has unused basement, any ideas on how to utilize it?

Question

I have a duplex that had two common staircases that have access from two different doors (they have a shared laundry room). How can I utilize this basement as it current is empty and unused.

Some thoughts I had was divide it between two doors with a partition wall and give access as storage (paid?) leave it entirely open and put two storage lockers (more expensive)

I looked into creating a garden apartment but it would require rezoning and ordinances issues that may not make it worth it currently.

Anyone have any ideas on how to utilize this wasted space?

Nathan McBride · Answer

I haven't done it, yet, but paid storage is something I have always thought was a brilliant idea.  The ROI will likely be much higher than what you would get if you invested the $$$ necessary to convert into another apartment.

Christen G. · Answer

Paid storage seems like a no-brainer!

Tyler Z. · Answer

@Bonnie Griffin Kaake

I actually just rechecked zoning rules, and it's Eligible for a third unit. This is probably the route to go?

Tyler Z. · Answer

@Bonnie Griffin Kaake

The property was just purchased and current the zoning prohibits a third unit. Adding a third unit would require me to go through the rezoning process and fully renovate the building. I'm unfamiliar with what you've mentioned, I'll have to look more into it.

In the meantime storage seems to be the best use while go about attempting rezoning.

Louie Gabriel · Answer

@Tyler Z. There are numerous factors to consider before anyone can give you a solid opinion:

1. If the property is in an area covered by zoning or similar restrictions, it is very unlikely you could use the unit as a 3rd residence.  It's worth checking but most owners would have used it that way if it was permitted.

2. If the property is permitted to have 3 units, then you have to consider finished ceiling heights, window sizes (unsafe to have "basement" sized windows for an apartment), flooding potential, placement of the mechanicals, size and nature of the entry, whether or not there are 2 ways to exit and a number of other practical considerations and considerations dictated by the laws and codes of the area.  You will create great liability for yourself (and, likely, the tenant as well) if you create a unit in violation of the law.  If anyone gets hurt or dies kiss your life as you know it goodbye.

3. Whether or not it could be used solely for storage by someone other than a resident would likely also be determined by law and/or code and/or zoning although I suspect that to lease one storage unit (even if one wasn't technically permitted) that wasn't accessed often - if that were to pass muster with your insurer - would likely fly under the radar of most government entities (though it would still have some risk).  If the storage tenant kept dangerous chemicals, explosives, etc. there you, of course, will have significant liability particularly if you do this in violation of law

Bonnie Griffin Kaake · Answer

@Tyler Z. I am curious. If this property is already a duplex, why would another unit be a problem? Unless, it is not zoned for multi-family. Of course, the easiest way to monitize it is for storage. The long-term value, if the neighborhood supports it, is a 3rd unit. How long ago did you purchase the property? If you haven't done a cost segregation study on it or brought it into compliance with the Tangible Property Regulations, you may be leaving money on the table that you could use for some of the remodeling. I am here if you want to talk.

Andrew B. · Answer

Your storage idea is worth a lot of money if you are zoned to rent it out to non-residents (which I believe would make it a commercial use). Your storage idea may only be worth a little extra money if your only option is the current residents. Even in that scenario, you probably wouldn't charge them extra for it, you would just increase the rent.

Another idea that popped into my head would be to put a locking door in the wall. That way if one resident wants the whole basement you can charge them extra and lock out the other resident. That would be a little more money, but more versatility.

Tyler Z. · Answer

@Louie Gabriel

Thanks for the information

I think I'd more over use it as a storage for the tenants and offer it up for additional rent per month. It would require only one wall and I should be able to avoid most costs on putting in work for the apartment. I could always down the line rezone the building and take down the wall. I think it would bring good value to offer storage for tenants especially when they are using storage units outside of the building currently.

Tyler Z. · Answer

@Nathan McBride

Great point about investing for a second apartment. Roi would take much longer. Storage would require one non load bearing wall. Easy peasy.

Tyler Z. · Answer

@Christen G. Seems like a great idea, divided evenly would put it at about 250-300sqft of additional storage. What would be fair market for storage? And what's the best way to go about offering to tenants? It was entirely unused before, I can't see them being upset having the option of paid storage.

Duplex has unused basement, any ideas on how to utilize it?

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