If you decide that a basement suite is a reasonable option, you should be aware of the fact that lower level suites are considered to be among the least desirable places to live by tenants. For this reason, it is important that you take measures to make your living space more appealing to renters.
Some home owners use a rental suite to help out their college-age children live more independently while letting them live more cheaply than having their own apartment would be. Another option like that is to rent your suite to your parents; this is an especially good option if your parents like to travel to warmer climates for part of the year and so don’t want to have a house that will stand empty for months at a time.
If you are considering the purchase of a home with a suite to rent out, it is important to approach it the right way. In such cases as these, you are not buying a home solely to suit your own taste, but must consider the requirements of renters when making your purchase. You must also examine your finances to see if a rental investment property is the right choice for you.
Make the rental area as large as possible while still allowing the rest of the home to have ample space for you to live in; a small suite will net you a small amount of rent to help pay your mortgage while a larger suite will allow you to receive more rent for the rental of your suite.
You are also going to have to put money aside for vacancies. The expenses must still be paid, even if there isn't a renter living in your home. Despite stringent screening, you may have to deal with renters who abuse the home or refuse to pay rent. These are risks you must prepare for financially.
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