Legal suites are a great option to consider when planning to develop your basement. Edmonton residents sometimes use legal basement suites in their homes as a way to earn extra money and increase the real estate value when they decide to sell. As Edmonton’s favourite contractors, Peak Improvements understands that there are reasons among the many positives that people hesitate to go forward with making legal suites. Below, we discuss two of each. Keep reading to discover whether making a legal suite during your basement development project is right for you.
Pro: It Produces a Second Income Stream
Often coined the main selling feature, having a secondary income stream is desirable in Edmonton in 2023. This sentiment is especially true if you are not currently using your basement for anything other than storage. In this case, turning your undeveloped basement into a legal suite can give you long-term rental income! If you are starting from scratch, you have the benefit of crafting your basement to attract the renters of your choosing.
Con: Maintenance Required
If you are housing renters, it is up to you to manage the upkeep of the home. Any major renovations or maintenance that needs to be done are on you to be completed. If you are not ready for the responsibility of caring for a tenant in your basement, this choice might not be for you. We can help you come up with a basement development plan that centers around using the space for yourself.
Pro: Home Value Increases
Finished basements are an added home feature that gives a home a higher market value than unfinished basements. Moving forward with adding a legal suite to your basement development project can give you a higher return on investment than more minor renovations. And while there are a multitude of reasons that motivate Edmontonian residents to develop their basements, the price jump you may experience when listing your home makes the initial investment worth it.
Con: Up-Front Investment
The cost of developing basements in Edmonton is an investment that you have to be willing to move forward with. That being said, it is important to note that the actual cost of creating the legal suite is entirely dependent on the end goal you have in mind. If you are looking to create a modern legal suite fully furnished with extravagant finishes and appliances, it might cost you more than making a more basic, blank slate suite for your tenant to make their own.
Pro: You Can Claim it On Your Taxes
Income that has come from a rental property or rental suite can be deducted from your taxes. Such things as the following can be claimed:
- Insurance
- Property Taxes
- Utilities
- Repairs
- Maintenance
- And More!
In short, this means that your legal suite will not only give you income and increase your home’s future sale price, but it will also reduce the amount owing on your taxes every year.
Con: It Must Meet Edmonton Legal Codes
In order to have a legal suite, it must meet Edmonton’s codes. This will only happen if you hire certified trade contractors to carry out the basement development. You need to have the proper building permits to create a secondary suite legally. Peak Improvements has worked with many homeowners converting unfinished basements into legal rental suites and is ready to help you, too!
Start Your Legal Suite Today!
Peak Improvements knows the ins and outs of making legal rental suites. We use that knowledge to help you in our process of developing your basement. Contact our certified contractors at Peak Improvements when you are ready to turn your unfinished basement into a second source of income!