Renting basement suites

[RELover]

Currently we are in the process of converting our basement to a rentable suite.

Few questions:

1. The electrician is recommending us to up our electrical panel to 200 amps. It will cost $2k.

If we don't, there is a risk of tripping if the upstairs tenants and basements tenants are using their appliances at the same time.

So he gave us two options:

A) get a gas range upstairs
B) just get a cooktop instead of a range with oven.

Do basement tenants demand oven also? Or cooktop would be sufficient without putting off many tenants?

2. Should we go with a 1 bedroom or keep it an open/bachelor style basement with a small den. The den is already finished. So if we convert to a 1 bedroom we would advertise it as 1 bedroom plus den.

The property is located in Mississauga.

Thanks for your suggestions in advance.

 

[Thomas Beyer]

Does Mississauga enforce illegal basement suites ? Mine in Kamloops was shut down recently.

I'd upgrade the electric system as suggested and keep it electric.

I'd buy a basic stove / oven combo.

I'd make a real 1BR as opposed to a den.

 

[kfort]

Agree w all of the above. $2k sounds low to me but may be a local market thing.

 

[BREAKRZ]

He's probably installing a pony panel. Which is basically a small 100 amp panel next to the main panel

 

[kfort]

I read that as a 200A main panel.

 

[RELover]

installing a pony panel. Which is basically a small 100 amp panel next to the main panel

Is that a bad thing? We had two different electricians recommend it and they both quoted the same. Both were certified

 

[BREAKRZ]

No thats the best option.

 

[RELover]

best

Okay. Thank you.

Do you also think that tenants look for a full range? Or we can get by with a cooktop?

 

[BREAKRZ]

I think they would prefer a full stove but you never now. Maybe students wouldn't mind an oven top.

 

[Courtney Hammond]

Who is your target tenant? What is your target rent? The highest rent will be a one bedroom (if it is a decent size) and an oven. It will also be the strongest rental pull in downtimes. A cooktop bachelor apartment will not rent quickly (imo). But I guess if your market is students they may not care- but personally I'd 1) upgrade the electrical (worth the $ now against the headaches later) and 2) have an oven/ 1 bed.

 

[RELover]

My target tenant is a professional (preferably single person).

Our basement is super nice compared to what we have seen in our area. We think for a single person it would rent for 800-900 easily. $1000 if it's a 1 bedroom.

I do also think that for long term a full range would be best.

 

[RELover]

And no we do not want a student at all.

 

[Brad Redekopp]

Students are awesome, why not a student? 4 year degrees, they are usually quite. Vet them through social media to see what they do on weekends

 

[RELover]

Students are awesome, why not a student? 4 year degrees, they are usually quite. Vet them through social media to see what they do on weekends

I would honestly love to learn about renting to students but not for this property.

This property is our principal residence and it is quite upgraded and we would like to keep it that way - eventually we will be moving out of it and keeping it as an executive rental when we move.

Can you please tell me your experience with Students. Which city do you have properties in? How did you grow? What is your tenant vetting process?

 

[Sherilynn]

All of our suited properties have 100 amp panels, (even in our brand new, purpose-built suited houses). If the garage is detached we like it to have a sub-panel as we often rent garages separately.

The only time we have ever had an issue with breakers tripping is when we had 2 beauty college students renting the upper suite of a 1968 house, and they each plugged hair dryers and curling irons into surge protectors on the same outlet as their lamps, radios, clocks, etc.. It's also possible the two surge protectors were sharing a circuit. Other than that, no issues.

Keep in mind, appliances are getting more efficient rather than less, therefore less draw. (But multiple heating appliances on the same circuit will likely always be a problem.)

 

[RELover]

Thanks for your reply, Sherilynn. So glad you responded.

I also wanted to ask you whether it would be wise to make a bedroom in the basement also. We were thinking of keeping it a open/studio type space as we just wanted a single person. But based on your experience with basement tenants what do they look for?

 

[RELover]

Thank you for sharing, Brad. I hope to get there soon! Prices in and around GtA have gone through the sky! Even outside of GTA, it is difficult to find cashflow or even breakeven properties.

Bought my first house in Saskatoon 10 years ago, rented the basement suite to a student who was there longer than me and probably took better care of it at the time, We now screen out tenants with equifax for credit score but social media and references are perfectly fine. What are you looking to get into? There are many ways to approach real estate. People find deals and assign the contracts to others, flippers, passive holders, active appreciation refi and hold, development, etc. I Started off suiting single family houses, ran out of capital, used the previously noted construction knowledge to JV some more suited houses then 4 plex. I found development to be where I wanted to be so approached a builder and asked for a job but everyone likes their own cup of tea

ks y

 

[Sherilynn]

Thanks for your reply, Sherilynn. So glad you responded.

I also wanted to ask you whether it would be wise to make a bedroom in the basement also. We were thinking of keeping it a open/studio type space as we just wanted a single person. But based on your experience with basement tenants what do they look for?

Even most single tenants would prefer bedrooms so they can have some private space and not have to be a neat freak to allow visitors. Open space is great, but not at the expense of the bedroom.

 

[dpeacock]

For me, it depends. One of our most rentable suites is a 600 sq ft one room bachelor suite with no stove, just a hot plate and countertop oven, fridge and dishwasher. Renovated, great location, affordable. Always rented, single female. Pet friendly.

 

[Brad Redekopp]

All of our suited properties have 100 amp panels, (even in our brand new, purpose-built suited houses). If the garage is detached we like it to have a sub-panel as we often rent garages separately.

The only time we have ever had an issue with breakers tripping is when we had 2 beauty college students renting the upper suite of a 1968 house, and they each plugged hair dryers and curling irons into surge protectors on the same outlet as their lamps, radios, clocks, etc.. It's also possible the two surge protectors were sharing a circuit. Other than that, no issues.

Keep in mind, appliances are getting more efficient rather than less, therefore less draw. (But multiple heating appliances on the same circuit will likely always be a problem.)

You service the garage with separate power (and gas? meters) the city bylaws allows seperate meters for garage?