Own a 2-family, basement apartment? (real estate, apartments, rentals)

[mak1036]

I own a two-family house and am currently living in one unit and renting the other. The units are built on top of a two-car garage so the entire house is above ground. I wanted to know if it is legal for me to rent both apartments and live in the finished basement? The basements electric, gas and water are part of the apartment above. Do I need to add a new electric, gas and water meter?

[Sergio M]

You may want to check with your town. The utility companies probably will not give you another meter without properly converting to a three family. It may be quite challenging to change the wiring, and isolating the plumbing to service only the basement apartment. By changing over to a three family, I would imagine that your taxes will go up, cancelling any benefit you may receive. Good luck!

[Marc Paolella]

Originally Posted by mak1036

I own a two-family house and am currently living in one unit and renting the other. The units are built on top of a two-car garage so the entire house is above ground. I wanted to know if it is legal for me to rent both apartments and live in the finished basement? The basements electric, gas and water are part of the apartment above. Do I need to add a new electric, gas and water meter?

Is the property located in an area that permits 3 unit dwellings? Most are not. If you not in a multi-family (3+) zone, you cannot have 3 rental units in the property no matter where they are. Make sure you do this legally. If you convert illegally and there is a fire, your tenants can sue you for everything you own.

[Kthnry]

I have wondered the same thing. I have a legal two-family house that has an in-law apartment in the attic (two rooms, full bath, and kitchenette). I rent out one apartment and live in the other. I've wondered if I could legally move up to the attic and rent out my current apartment. I would still have just two rentals.

In your shoes, I would just charge a higher rent for the apartment above and rent it as all utilities paid. Or just subdivide the electric and get a house meter for the basement. (A house meter is used for the common areas of a building. In my house, the house meter covers the hallways, the basement, the exterior, and the attic.) Water is not worth the cost of sub-metering. Neither is gas, unless it's gas heat, in which case you'd need separate boilers/furnaces.

[EANJ]

Originally Posted by mak1036

I own a two-family house and am currently living in one unit and renting the other. The units are built on top of a two-car garage so the entire house is above ground. I wanted to know if it is legal for me to rent both apartments and live in the finished basement? The basements electric, gas and water are part of the apartment above. Do I need to add a new electric, gas and water meter?

Speak with the town and find out what's allowed, not allowed, and so forth. Then speak with an attorney who specializes in real estate, zoning, variances, etc., and let him/her guide you through the process. Good luck.