Some Advice on how NOT to design your basement suite

[AndreiAngelkovski]

Hello Fellow Investors,

When planning for your next rental property, think about the actual design of that space.


Is the layout functional? Is there enough space for the laundry, kitchen, and bathroom for example? Sometimes we get so caught up in the renovations and in the numbers, we lose sight of how important the actual design of the space really is.


So the next time you are looking for that next buy or deciding to renovate that basement suite`spend a bit more time on getting the layout that will maximize your rental income!







I always get excited seeing rental properties that look great but there are those days where I come across the ones that just make my head shake! Check out this video of a basement suite that does NOT have a good layout:

 

[ShannonMurree]

Thanks for sharing Andrei - great post! And of course, make sure you can legally build a suite by checking with local By-laws

So true, when we see stuff we say "what were they thinking??"

 

[Sherilynn]

Interesting post. I have seen worse suites, but the thing that struck me about this suite was that your hair appeared to be brushing against the ceiling. Either you are extremely tall, or the suite is a little too short (or both).

 

[AndreiAngelkovski]

[quote user=Sherilynn]Interesting post. I have seen worse suites, but the thing that struck me about this suite was that your hair appeared to be brushing against the ceiling. Either you are extremely tall, or the suite is a little too short (or both).



You are right! I am 6 foot 2 inches tall and my hair was brushing up against the ceiling.

I personally think that is border line and wouldn't recommend anything shorter than that...it's alot more difficult to rent out when the ceiling height gets shorter.



The taller the ceiling, it feels more spacious and brighter and it attracts more quality tenants.

 

[2ndstory]

[quote user=AndreiAngelkovski]The taller the ceiling, it feels more spacious and brighter and it attracts more quality tenants.





Taller ones? Can you elaborate?



Nik

 

[tonyla]

I assume what he means is that taller ceilings are a desirable quality, more so in basements as their ceiling height usually is pretty poor. Very much like buyers that are looking to purchase a home to live in, a common selling point mentioned by builders/realtors is ceiling height. Especially if it is 9+ feet.



On average will IMHO you will get more desirable tenants with a ~7 foot ceiling then a ~6 foot ceiling.

 

[AndreiAngelkovski]

[quote user=tonyla]On average will IMHO you will get more desirable tenants with a ~7 foot ceiling then a ~6 foot ceiling.



I agree. I have clients who rent out basement apartments and their ceiling height in the basement is 6 feet tall and they charge about $950 / month. And I have other clients that have very similar basement apartments but with a basement ceiling height of 7 feet and they charge $1200 / month.



So it does have an impact on rents.

 

[2ndstory]

[quote user=AndreiAngelkovski]



So it does have an impact on rents.






Impact on rent, yes. Quality of tenant, no.



Nik

 

[housingrental]

Hi Nik

You are not correct

Andrei is correct

Adam



[quote user=2ndstory][quote user=AndreiAngelkovski]



So it does have an impact on rents.






Impact on rent, yes. Quality of tenant, no.



Nik

 

[AndreiAngelkovski]

[quote user=2ndstory][quote user=AndreiAngelkovski]







So it does have an impact on rents.















Impact on rent, yes. Quality of tenant, no.







Nik





Hi Nik,



I believe it has an impact on the quality of tenants as well (or tenant profile) simply because of the price range you are advertising the basement suite. The price alone filters out the tenant profile who cannot afford or is not willing to pay that much for a basement suite.



Also, based on my experience with renting out basement suites in the Toronto Beaches, there is definitely a difference in tenant profiles when you offer a $900 basement suite versus a $1200 basement suite. More importantly, the quality of your renovations must compliment the rent you are asking and you also must complete your due diligence on the prospective tenants.



It sounds as though Adam has had similar experiences in the KWC area.

 

[2ndstory]

[quote user=housingrental]Hi Nik

You are not correct

Andrei is correct

Adam



[quote user=2ndstory][quote user=AndreiAngelkovski]



So it does have an impact on rents.






Impact on rent, yes. Quality of tenant, no.



Nik






Uh Adam, I have to disagree. The claim that a higher ceiling will attract better tenants is ludicrous. I also disagree in claims like better neighborhoods attract better tenants. You can have terrible tenants in great neighborhoods and and awesome tenants in rough neighborhoods. That is speaking from personal experience.



Nik

 

[AndreiAngelkovski]

[quote user=2ndstory]Uh Adam, I have to disagree. The claim that a higher ceiling will attract better tenants is ludicrous. I also disagree in claims like better neighborhoods attract better tenants. You can have terrible tenants in great neighborhoods and and awesome tenants in rough neighborhoods. That is speaking from personal experience.







Nik



Hi Nik,



You make a valid point. That is why it is important how you advertise and how you conduct your due diligence when selecting your potential tenants.

 

[bizaro86]

[quote user=2ndstory]Uh Adam, I have to disagree. The claim that a higher ceiling will attract better tenants is ludicrous. I also disagree in claims like better neighborhoods attract better tenants. You can have terrible tenants in great neighborhoods and and awesome tenants in rough neighborhoods. That is speaking from personal experience.





Just because you can have good tenants in bad suites (location/condition/roof) and bad tenants in good suites doesn't make that the most likely scenario.



It will be easier to get a good tenant for a properly outfitted suite in a good neighbourhood than it will be for a low quality suite in a bad neighbourhood. The type of person who is likely to be trading a cheaper rent for a worse place to live is less likely to be a 5 star tenant.



Obviously, there are things that can be done to improve tenant quality anywhere, but suite quality/location is absolutely a factor.

 

[housingrental]

Hi Nik

I think the above post from Bizaro pretty much covers what I would have wrote

I recommend you take it to heart - you might have had great tenant experiences renting poorly quality setups but this it is very hard to consistently attract this long term .....

 

[2ndstory]

[quote user=housingrental]Hi Nik

I think the above post from Bizaro pretty much covers what I would have wrote

I recommend you take it to heart - you might have had great tenant experiences renting poorly quality setups but this it is very hard to consistently attract this long term .....





I don't rent poor quality setups. My homes are among the nicest on the block. I am saying though, that two of my homes are in tough neighborhoods, but I have awesome tenants. They keep the property neat and tidy, they text me if there is an issue, they pay me on time every month.



I have a 4 plex in a great neighborhood. 3 out of 4 tenants are awesome. One keeps their suite at a low level of cleanliness. I had to threaten to evict them. This is in a very desireable neighborhood.



Good tenants and bad tenants can be found anywhere. Attracting tenants is easy. Choosing the right one is the challenge.



Nik

 

[housingrental]

Hi Nik



I agree and understand with your above post. I don't understand how it follows from your above post that you disagreed with Andrei's knowledgeable perspective?



Perhaps you can provide him an apology?