Converting a Basement into a Rental Unit

Supplement your income by turning your unused basement space into a rental unit.
Bedroom with Wood Trimmed Wall

Bedroom with Wood Trimmed Wall

By: Caroline Shannon-Karasik

If you are one of the many people who have an unused basement space, then you may want to consider converting it into a basement rental unit. Not only will the space be put to good use, but it will also provide a source of supplemental income.

Basement Remodels: Before and After

See All Photos

Shop This Look

Before deciding to rent out your basement space, look into any legal issues within your state and county that may affect your ability to rent the space. Health and safety issues, like radon or mold infestation, are also issues that should be addressed before listing your basement as a rental unit.

When you are given the go ahead to convert your basement into a rental unit, there are a few aesthetics that should be addressed. Make sure the basement area is finished and livable. This means providing the proper flooring, lighting and adequate bathroom space. A kitchenette, washer and dryer may also be worthy additions.

If you decide to list the unit as a furnished space, then you will need to provide a bed, television, dresser, floor lamp and other common items.

Before seeking tenants, decide what level of maintenance you expect from a potential renter and communicate that in your advertisements and during conversations.

Tips for Remodeling a Rental

See All Videos

Next Up

No More Space? Steal These Square Footage-Stretching Tips From 'Love It or List It'

'Love It or List It' contractor Eric Eremita goes behind a renovation that added space above and below.

Pet-Friendly Basement Inspires

Josh Williams and Josh Landers turn their small, cluttered basement and attached covered porch into a pet-friendly den and play area for their Jack Russell terrier, Bentley.

Framing a Basement

Just like your favorite picture, a finished basement requires a solid frame in order to keep the walls preserved. Here are a few tips for framing basement walls.

Finishing Basement Walls

Add the finishing touches to your basement with these basement wall ideas.

Wood Flooring In the Basement

Hardwood floors are a beautiful addition to a finished basement, but they can also allow for moisture retention and water damage. Learn how to safely install hardwood floors while maintaining the look of a basement space.

Crawl Space Issues and Solutions

Here's how to keep your crawl space in tip-top shape.

Cork Flooring In Basements

Cork floors are a durable and easy-to-maintain option for basement flooring. Find out how this natural material can work to enhance the appearance of your home.

Female-Friendly Retreat for Dad

Candice Olson turns an outdated basement into a masculine room that the man (and the women) of the house can enjoy.

Movie Night Inspires Basement Flip

Homeowners Tom Price and Julie Bitton transform their dated downstairs into a movie-inspired media room filled with vibrant orange, geometric patterns and surround sound.

Follow Us Everywhere

Join the party! Don't miss HGTV in your favorite social media feeds.