Dungeon. Bunker. Cellar. Some of the more nefarious descriptions for an unfinished basement in a new builds. Those eerie spaces below the ground capable of inducing the heebie-jeebies in even the most courageous of new home buyer.
Earning potential. Supplemental income. Terms used by those able to see the rental unit through the prison like décor. A foresight that could, at long last, help that first-time buyer take a critical first step into the market. A strategy by which a young family is able afford the new home in that coveted school district. A vision permitting those should-be empty nesters who can’t shake the kids, to purchase some much-needed extra space.
Over two decades as a general contractor and real-estate investor have helped me identify many of the features renters covet most. Some of the more impactful, are listed below:
Natural Light
The biggest game-changer in the eyes of tenants. A basement rental, awash with a natural glow, can impress a sense of comfort akin to an above grade unit.
But as is the case in the unfinished basements of most new builds, the only source of natural light is provided by under-sized windows, installed too few and far between. Factor in the cost of enlarging the windows to the maximum size allowed by both local building code and budget. Replace any pane-less exterior doors with those inclusive of a glass insert.
Let the light shine. Today’s expense will lead to tomorrow’s gain.
Layout
It is a simple equation we all understand. The more bedrooms a unit offers, the more it can command in rent. When considering a new build with an unfinished basement do your homework. Know the amount of rent needed per month and the scale of the unit it requires to demand.
Consider furnace rooms, electrical panels, and water meter areas. Spaces to which the owner will need unimpeded access. Keep an eye towards staircases, mechanical equipment, backwater valves, HRV units, hot water tank and sump pump locations. The costs associated with the relocation of these systems can be prohibitive.
By considering potential layout infringements, the perspective buyer can make an educated decision. Can the unfinished basement in that new build garner the rent required to make the numbers work?
Overall Privacy
Privacy has always been and will always be a valuable commodity. Often achieved through features like the walk-out and separate laundry area, privacy is of critical importance to both the viability and value of the unit in the eyes of most perspective tenants.
In the unfinished basement of that new build, look for a separate and already established way in. The expense of adding a walk-out condition or separate side-entry can be extensive and void some applicable New Home Warranties.
Scan for a floor drain location suitable for a basement laundry area and available breakers on the existing electrical panel to suit the additional appliances. Most new builds will include them, but if not don’t worry. Costs associated with either upgrade can be easily digested over a short amount of time. Don’t forget to identify the space for the laundry area needed by the owner upstairs. The lack of square footage can be a more extensive and far costlier problem to solve.
Remember. Unlike a mother distanced from her child for the very first time, tenant anxiety is lessened by separation. Give your renters their space and they will reward you with more money each month in return.
Don’t be intimidated as you pull the chain-light dangling over that too-steep of a staircase and find the natural light through the darkness of those tiny, builder-grade windows. See the unfinished basement in that new build for all it has the potential to be. The blank canvas on which to paint your family’s future.
