We are about 3000 shy every year of what we need and we have been for 10 years. we are about 30,000 dwelling units to 50,000 dwelling units behind.

Generally speaking, a rental property is depreciated over 27.5 years, and only that portion attributed to the dwelling itself and not the land is depreciated.

Now I am separating the basement into a Legal separate dwelling to make the house an up/down duplex.

@Courtney Ann McShane Yes, Google TACOMA Additional Dwelling Unit, it’s allowed.

The highest and best use for your single family rental is to rent it as a dwelling, not as a storage facility, dog hotel, meditation chamber, or whatever other oddball deal we can come up with here. 

One issue with basement dwellings is they often use a 7' ceiling. 

I found out the state of Vermont defines a boarding house as more than five unrelated adults renting rooms in a dwelling unit.

Seattle openly allows 8 unrelated people in any dwelling unit. 

Please consult with your own attorney for legal advice.Because you state you are in CA, I assume your rental is also in CA and that the rental is a dwelling unit for the tenant.If you (1) notified the tenant in writing of the tenant’s option to request an initial inspection and of the tenant’s right to be present at the inspection, and (2) if the tenant requested an initial inspection, and (3) if the inspection occurred, and (4) if at the inspection you gave the tenant a written itemized statement specifying repairs or cleanings that you proposed to be the basis of any deductions from the security the landlord intends to make (and all statutory notices), and (5) if the tenant had the opportunity during the period following the initial inspection to remedy the identified deficiencies, in order to avoid deductions from the security, and (6) if the tenant did not remedy the deficiencies identified in the itemized statement, then, you may withhold from the security deposit sufficient amounts to pay for damages including damage from smoking.