leasing basement & 1st floor separately: considered apartments?

Question

I want to separately lease the basement and main floor of a ranch house. Is this considered renting a home or an apartment? Is there a need to differentiate?

Roy N. · Answer

@Susan Jojola

If the basement unit is an accessory apartment (check your zoning), you could probably advertise the main house as a house rental if you feel that is beneficial.

Susan Jojola · Answer

Thank you, Roy. The units most closely reflect the former- separate entrances, kitchens, bathrooms. However, shared space would include the garage and back yard. Still considered separate units?

A follow-up question: do the 2 units (upper and lower levels) automatically classify as "apartment rentals"? Or, could I advertise the units as two "house rentals"?

Roy N. · Answer

@Susan Jojola

Are they independent units with separate entrances, kitchens, bathrooms?  If so, you are renting separate units.  In this instance, each tenant has an expectation of quiet enjoyment of their space separate from the other.

If the two spaces are not independent of one another - ie. they share space (i.e. Kitchen on the main floor, laundry in the basement) or one can be entered from the other - then you are really renting rooms/spaces within a single residence.  In this instance, there is no expectation of independent quiet enjoyment by either tenant as they are sharing a dwelling.