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..by adding a small studio in the basement of a 2FAM..
anybody been through this procedure? how long was the process and how much does property taxes go up? thank you much.
This may not be a viable option. I know of no town in NJ where zoning allows for legal basement apartments. I could be wrong, but before you even start working out anything, you contact your local zoning office.
wow really? i've seen some basement studios rented, but i guess it's not legit? how would your answer change if say it were a 3 story house, and the conversion is at ground level (ie first floor instead of basement)? thanks black
wow really? i've seen some basement studios rented, but i guess it's not legit? how would your answer change if say it were a 3 story house, and the conversion is at ground level (ie first floor instead of basement)? thanks black
If its above ground yes, you can do what you want, but anything below ground level is considered a basement.
Now if you were to finish that basement and have sometype of access going through the first floor apartment and rent out to a relative, maybeeee you may get away with that, but again not likely (my former landlord from years back did this). You can not legally have a basement apartment. Finished basement for entertainment purposes yes, but not as a seperate apartment.
The bigger challenge than the basement location is the fact that you change into an entirely new occupancy when you go from 2-family to 3-family. 1 and 2-family homes follow a different building code than apartment buildings with 3 or more units, and you'll be subject to different fire ratings for walls, floors and ceilings, potential fire alarm system requirements, etc. You'd need to provide another electric meter for the 3rd unit, and likely do modifications to the existing spaces to bring them to code. Overall, the cost will be far more than anything you can possibly try to recoup by renting a studio apartment- especially in the basement.
There is a big difference between a basement and a cellar. I was able to locate NYC's law quite quickly, and I am told that NJ's is similar:
Basements and cellars are very different. A basement is a story partly below curb level but having at least one-half of its height above the curb level. A cellar is an enclosed space having more than one-half of its height below curb level.
Basements and cellars of multiple dwellings may not be occupied unless the conditions meet the minimum requirements for light, air, sanitation and egress, and have received approval by the New York City Department of Buildings.
Twenty years ago I worked in property management, here in NJ. At that time, a cellar could never be a separate legal apartment, but some basements could.
A building inspector once told me, "Depending on the property, it may be legal to have sleeping rooms in a basement. It is never legal to have sleeping rooms in a cellar."
2) NJ HOTEL AND MULTI-FAMILY DWELLING ACT
Bob is absolutely correct. A three-family falls under the act. A two-family does not. Research the cost of making the whole building compliant before starting any conversion. Compliance can be quite expensive, especially when refitting an older structure.
More so, zoning may prohibit a conversion to a three-family.
3) MOTHER/DAUGHTER UNIT
So can we finish off the basement of our two-family home to make a third apartment and convert the property to a three-family? Maybe, maybe not. But if you can't make the house a "legal three-family," don't throw in the towel. An option may still exist for you.
For many people, the third "apartment" is referred to as a mother/daughter unit - not a legally separate unit but with all the newly installed rooms and components being legal extensions of an existing unit. It's often legal to add a kitchen, a bathroom and other rooms in the basement, provided a legally separate living unit is not being made. Many two-family properties have three legal kitchens and three or more bathrooms. However, they're still two-family homes with only two legal occupancies.
Most of these units are in owner-occupied homes. The mother/daughter unit is also occupied by a relative of the owner -- hence, it's a legal arrangement in most towns.
In the years that I was an active real estate agent, I saw a two-family house with four kitchens... one in the basement and one in the attic. The town inspector told me it was legal. This was a two-family home with two mother/daughter units.
The sticky part then comes if the property is sold to an investor who wants to rent out all of the units separately. Most often, that's not legal -- and then the problems start.
There is a big difference between a basement and a cellar. I was able to locate NYC's law quite quickly, and I am told that NJ's is similar:
Basements and cellars are very different. A basement is a story partly below curb level but having at least one-half of its height above the curb level. A cellar is an enclosed space having more than one-half of its height below curb level.
Basements and cellars of multiple dwellings may not be occupied unless the conditions meet the minimum requirements for light, air, sanitation and egress, and have received approval by the New York City Department of Buildings.
Twenty years ago I worked in property management, here in NJ. At that time, a cellar could never be a separate legal apartment, but some basements could.
A building inspector once told me, "Depending on the property, it may be legal to have sleeping rooms in a basement. It is never legal to have sleeping rooms in a cellar."
2) NJ HOTEL AND MULTI-FAMILY DWELLING ACT
Bob is absolutely correct. A three-family falls under the act. A two-family does not. Research the cost of making the whole building compliant before starting any conversion. Compliance can be quite expensive, especially when refitting an older structure.
More so, zoning may prohibit a conversion to a three-family.
3) MOTHER/DAUGHTER UNIT
So can we finish off the basement of our two-family home to make a third apartment and convert the property to a three-family? Maybe, maybe not. But if you can't make the house a "legal three-family," don't throw in the towel. An option may still exist for you.
For many people, the third "apartment" is referred to as a mother/daughter unit - not a legally separate unit but with all the newly installed rooms and components being legal extensions of an existing unit. It's often legal to add a kitchen, a bathroom and other rooms in the basement, provided a legally separate living unit is not being made. Many two-family properties have three legal kitchens and three or more bathrooms. However, they're still two-family homes with only two legal occupancies.
Most of these units are in owner-occupied homes. The mother/daughter unit is also occupied by a relative of the owner -- hence, it's a legal arrangement in most towns.
In the years that I was an active real estate agent, I saw a two-family house with four kitchens... one in the basement and one in the attic. The town inspector told me it was legal. This was a two-family home with two mother/daughter units.
The sticky part then comes if the property is sold to an investor who wants to rent out all of the units separately. Most often, that's not legal -- and then the problems start.
~~ Hope this helped ~~
thanks mav great info, is the mother/daughter legal in all of nj or is it dependent on municipality?
The problem is most often not where you can put a 3rd unit. It is whether you can legally even have a 3rd unit. The vast majority of 2-family homes are in one or two family zones. Zoning that accomodates 3 units and up is pretty much limited to the larger cities like Newark, Irvington, Passaic, Paterson, JC, Elizabeth, etc.
Many 2-family homes are in 1-family zones and exist only by having been in existence for longer than the zoning code itself. These are referred to as "legal non-conforming uses". They are also referred to as "grandfathered".
In most cases, a 3rd unit in a 2-family home is illegal. A few towns make mention of a "in-law" type unit where an additional kitchen can be installed. In most cases, there can be no separate entrance to such an apartment (called an accessory unit), and there must be interior access between the accessory apartment and its progenitor. However, I can state that the vast majority of towns make no distinction for accessory apartments, and in most cases such apartments are illegal.
There are thousands of 2-family homes in New Jersey that have units on the 3rd floor in violation of zoning. These are illegal, but owners keep renting them out anyway, despite opening themselves to huge liability issues if there is a casualty.
Of particular note is the lack of a second staircase or a fire escape. A true 3-family homes has 2 discrete internal stairwells, usually in the front and the rear. A 2-family with one stairwell, an attic apartment, and no fire escape can NEVER be legal.
A 2-family home with a finished attic and a fire escape is frequently illegal anyway, because the zoning in the area does not define 3-family usage as a legal option.
A "studio" or "efficiency" apartment in a basement is almost always illegal. And creates a liability issue in the event of a casualty.
Not only that, but most tenants are wise to the fact that you cannot legally collect rent for an illegal unit, therefore if you do not pay your rent in such a unit, you can live rent-free until you are evicted. And you can threaten the landlord with blowing the whistle on the illegal unit, creating a very uncomfortable and hostile situation.
The bank can also recall your mortgage if it is discovered that you are involving the asset in an illegal use.
So, in consideration of landlord-tenant law, zoning law, financial impact, and insurance impact, it almost never makes sense to bring risk into your life by creating an illegal rental unit in your dwelling. If it can't be done in a totally legal fashion with full approval from the town, your bank, and your insurance company, you just shouldn't do it.
Check with the building inspector before spending any $$$
Quote:
Originally Posted by looksrich
thanks mav great info, is the mother/daughter legal in all of nj or is it dependent on municipality?
Quote:
Originally Posted by blackandproud
Check with your local zoning office. It may differ from town to town.
What she said... always check first with the building inspector for the municipality. He/she can make your life really miserable if you get on his/her bad side.
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