Income suites are an emerging trend in Canada that could find a greater foothold in the United States. Essentially separate living spaces within a single-family dwelling, an income suite could have a financial benefit to the home owner, especially within a continuing transitory American populace.
But what exactly is an income suite?
From theChronicleHerald.ca (Feb. 02, 15)
The concept is simple enough — turn an area of your home into a legal, self-contained apartment then collect rent each month to off-set the costs of owning and maintaining the property. (1)
With housing costs beginning a slow upward climb the idea of additional income is certainly a welcome one. Recently, in the United States, home owners have been trading up to newer, larger properties without selling the original home. These homes are turned into rentals, as a means of creating additional income. Income suites could be the next evolution as the opportunity to turn existing homes into rentals becomes prohibitive. However there are certain rules one must abide by in order to have a legal and lawful income suite.
From www.RevNYou.com (No Date Provided):
A legal suite is when you add a rental unit to a property following the building codes of the city you’re in and doing everything from electrical to plumbing to framing with a permit. As each step in the process gets complete an inspection will be completed to make sure that it all meets the building codes for your area. An illegal suite is when you put in the rental unit without permits. (2)
In a recent article on homes.com greater detail was provided in regards to the requirements of an income home. An interesting comment is:
There must be enough space to build a kitchen, bathroom, storage, living room, and bedroom. The living room and bedroom can be one large room if space is limited; this will be a studio-style income suite. An ideal income suite would have a laundry room as well. (3)
Adam Almeida, President and CEO of TenantScreeningUSA.com states: “An income suite is really no different than renting out a single-family dwelling or an apartment over the garage. And it is important for the owner of that unit to conduct a full and thorough tenant check. After all an income suite is in close proximity of the owner and owner’s family.”
Tenant background checks consist of public records drawn either from county courthouses or databases. The most common tenant screening documents are:
- Consumer Credit Report – Offers information on the fiscal stability of a potential tenant
- Evictions – Offers information on an applicant’s past as related to rental stability
- Criminal History – Drawn from county courthouses, this is the most current and accurate information available
- Sexual Predator Registry – Provides information on convicted predators and sex criminals
A best practice offered to landlords and property managers of large rental communities remains the same for those seeking to rent an income suite: Work with a third-party tenant screening company.
A third-party tenant screening company is tasked with staying current on laws and legislation governing the rental screening industry and can provide a landlord with the information required to make a sound decision.
TenantScreeningUSA.com is a third-party tenant screening company that can provide the information landlords and property managers require to make decisions over potential renters. Specializing in working with smaller properties, TenantScreeningUSA.com can provide low-cost and highly effective programs from income suite property owners.
Notes:
(1) thechronicleherald.ca/homesnews/1266863-having-a-rental-unit-in-your-home
(2) revnyou.com/adding-a-suite-to-a-house/
(3) blog.homes.com/2013/06/add-an-income-suite-to-your-home-and-gain-revenue/
