Basement home rent to Two tenants legal

Investor · Atlanta · Member since 2019 · 597 posts · 99 votes

hi,
If I buy basement home can I rent basement to one tenant and main house at top to another tenant. Does property manager manage these types of properties? What are pros and cons of this approach? Is county or city happy about this or they give tickets saying it is not allowed or not legal like that. I purchase in no hoa area to make my life easy. Please advise

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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
1w
Gp, I'd definitely verify the zoning and permitting side before buying or setting up the property that way. The fact that a basement can physically be rented doesn't necessarily mean it qualifies as a legal separate dwelling, so I'd check with the city/county and make sure the property manager is comfortable managing that setup.
From the tax side, if you do end up renting the basement separately while living in the main portion, I'd also make sure you're tracking the rental portion separately. Rental income, expenses, depreciation, and improvements may need to be allocated between the rental and personal portions of the property.
The biggest thing I'd want to avoid is buying the property based on the extra rental income and finding out afterward that the basement can't legally be used the way you planned.
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Robert Winenger
Contractor · Atlanta, GA · Member since 2026 · 17 posts · 0 votes
1w
Absolutely! We have PadSplit rentals and rent out by the room, not just by the floor.
Just make sure each floor has its own bath, entrance, etc and it’s basically its own unit.
I'd recommend you check out the PadSplit model. We generate about twice the average revenue of a SFH rental.
Lmk if we can help with anything. Love to connect!
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