list the full basement as airbnb?

[Leon Lee]

Hi, BPers

I have a single family house rental that is closing at the end of month. The house is located near the downtown of a small city and is in a safe neighborhood. It is a 4-side brick ranch with full basement. The upper layer has 3be/1.5ba, 1100sqft and the lower basement has 1 be and 1 full bath. The seller completely renovated the house, with new roof, new AC/heater, new windows, new kitchen and a brand new bath and bedroom in the basement.  The basement has 1000 sqft space and a separate entrance to the front of the house, and a backdoor to the fenced back yard.

Once it closes, I have three choices: (1) rent out the whole house as long-term rental; (2) rent out the upper layer as the long-term, but the basement as Airbnb; and (3) rent out both upper and lower layers as separate Airbnb listings.  

Currently, I lean toward option (2), as I am new to Airbnb, with a busy full-time job and the location of the house is not super good. So, my questions are:

(1) Is it practical to rent out the basement as Airbnb, but the main floor as the long-term rental? 

(2) Since there is only one AC/heater and utility bills for the address, what will be the best way to split the utility bills, so that the long-term renters will not feel being taken advantage of?

(3) Is it necessary to install a separate thermostat for the AC/heater in the basement?

(4) Since the basement does not have a kitchen, can I put a desk with microwave, coffee machine? How much do Airbnb customers expect to have a full kitchen?

Any suggestions on how to deal with this new rental property for maximal profits will be greatly appreciated!

Lee