For some homeowners, the thought of turning one’s house into a duplex seems outlandish. Why would you do that to a perfectly good home? But for other homeowners, perhaps those seeking extra income or who like the idea of renting space out, it’s an idea that might make sense.
Duplexes can be a first step for people looking to invest in real estate.
Here’s a look at what you need to know if you’re considering turning your single-family home into a duplex.
[Are Duplexes Making a Comeback?]
What Is a Duplex?
A duplex home is a type of multifamily building, consisting of two connected dwellings that have separate entrances on a single property. Each dwelling is considered a duplex apartment. Typically, a duplex looks like a house with two front doors, either split between floors (with one apartment upstairs and the other downstairs) or split down the middle of the building.
Pros of Turning Your Home Into a Duplex
There are some good reasons to mull over the idea. Homeowners will sometimes turn a house into a duplex:
— To supplement their own income. Maybe you’ll be able to charge enough rent that it makes it easier to pay your mortgage.
— To create a space but also separation for family members. Perhaps you have adult kids who can’t afford to buy a house and you like the idea of having your kids live apart from you but close by.
— To enjoy some tax benefits. If half of the house is rental property, you’ll be able to take some deductions for maintenance and repair expenses.
You also might create future value for your home, according to Peter Evering, business development manager with Utopia Management Inc., in San Diego, who has been in the rental industry for over two decades.
“There was a time when turning a house into a duplex would have reduced its value, or at least its potential value, compared to renovating it into a better single-unit property,” Evering says.
For years, he says, you had to accept that by turning your house into a duplex, “you’re immediately turning off a huge chunk of the buying public.” Not everyone wants to live so close to the homeowner, Evering says.
With more people needing affordable housing, fears of turning your home into a duplex and reducing its value is less of a problem, according to Evering.
“In fact, turning your house into a duplex now can be a huge value add, because you’re essentially turning it into a flexible piece of property that you can turn into whatever works best for you,” Evering says. “You can rent out one side and continue living on the other, or rent out both sides and live somewhere else. You can sell the whole thing to an aspiring landlord. The possibilities are endless, and buyers and renters are not scarce, especially in this market.”
[Read: What to Consider Before Buying a Rental Property]
Cons of Turning Your Home into a Duplex
There are some decent reasons to shelve the idea:
— It’s an investment. You are, after all, turning one home into two — that’s two kitchens, more bathrooms, perhaps another laundry room. Have you thought about parking? Will you need to expand your garage, or at least your driveway?
— It’s time-consuming. You need to get the correct zoning permits, and to learn about building codes.
— If you later decide that turning your home into a duplex was a mistake, it isn’t an error you can fix easily. If you don’t like it, are you going to turn it back into a regular home?
Before you call a contractor, you need to give this idea some thought. Turning a house into a duplex may sound like a great plan — until reality begins to rain on your parade.
If you talk to Bruce Ailion about turning your home into a duplex, bring an umbrella. Ailion is a realtor and attorney at RE/MAX Town & Country in Atlanta, Georgia, and, spoiler alert: He would generally advise against turning your home into a duplex.
Most property is subject to some form of government regulation or zoning. Frequently, communities won’t allow it, Ailion says. Your first step is to explore your community’s rules and regulations on rental properties.
“Single-family zoning is a closely guarded and protected classification,” he says. “Residents buy in a single-family zone precisely because they do not want rental units in the neighborhood.”
Even if you can get the required permits easily, “not every home is a good candidate to convert into a duplex,” Ailion says.
You’ll need two front doors and probably two back doors. As noted, you’re going to want two kitchens, maybe more bathrooms and other living spaces in the other half of the home.
Typically the easiest and best way to turn a house into a duplex is to turn a finished basement into a second unit, Ailion says.
“When you try to split a unit in half on the main floor or separate the first and second floors of a two-story home, the outcome is often not optimal,” Ailion says. “The complexities of dividing electricity, plumbing, heating and air, and putting in a second kitchen, constitute a substantial cost and effort. Splitting the baby may not give either side precisely what they need.”
[READ: What Is an English Basement?]
Know the Zoning Process
Tracking down the right permits to turn a house into a duplex can be time-consuming. If you hire the right professionals to turn your home into a duplex, with any luck, that becomes more their headache than yours, but it’s still something you’ll need to be keenly aware of.
“Zoning laws vary by location, and homeowners need to be aware of local regulations that can impact their project,” says John Steppling, based in Jensen Beach, Florida, and a real estate broker associate with eXp Realty. “Consulting with the local planning department is an important first step. The last thing you want is to finish the project and have your local officials knocking on your door.”
Keep in mind the impact on a future sale of the home. If the prospective buyers learn you didn’t build this duplex with the right paperwork, that could torpedo your chances of selling it, Steppling says.
If your home isn’t zoned for a duplex, and you really want a duplex, you can seek permission for the unconventional use from your local government. This will add time and complexity to the project.
“Some homes are also in a homeowners association. The association often has more stringent restrictions than the zoning authority,” Ailion says. “If permitted by the zoning authority, you would also need approval from the homeowners association.”
Other Considerations When Turning a Home into a Duplex
There is plenty more to think about, beyond the time and money that goes into transforming one house into two:
The age of your home. That sometimes will come into play, according to Ailion. “People making this decision often work on a home built before 1978. Homes of this age and older raise the issues of lead-based paint and asbestos contamination that will be costly to address,” he says.
Sound. Have you thought about the noise of having two families in one home? You probably should, suggests Justin Baarts, a real estate agent with Engel & Volkers Okanagan, in Kelowna, British Columbia.
Homeowners considering creating a duplex need to think about other factors, such as soundproofing walls so you can’t hear conversations from your next-door neighbors, Baarts says. Children — yours or the renters’ — are another consideration. Will noisy neighbors wake up your children? Will you need to be conscious of waking up theirs?
Fire. You also need to think about fireproofing regulations, Baarts says. You may need to add a layer of fireproof drywall to the partition walls.
Finding the right professionals. Someone who is good with power tools isn’t enough. If you’re going to follow building codes, the right people need to be turning your house into two. They’ll be aware of things most average homeowners wouldn’t think of when transforming a house into a duplex.
For instance, Baarts says, “The property must be viewed by an engineer because both homes need to have their own structural properties. This means that if one home had a roof collapse, it would not cause the other home to have massive structural damage.”
Being a landlord. It’s not for everyone. You may love having your adult kids or elderly parents or in-laws live next to you. But it might be something else if it’s a family of strangers with different schedules and habits. You won’t be living with them, but you’ll all be living on the same property. And note that problem renters can be difficult to remove.
The future value of the home. Renting out half of your home could be lucrative, but also you could be reducing the value of your home down the road. Much of that will depend on whether creating the duplex is done well or poorly.
“If the two homes don’t feel like independent dwellings inside, the price will definitely be affected,” Baarts says.
Return on investment. You also will need to do the math. How long will it take to recoup your investment?
So Should You Turn Your Home Into a Duplex?
Only you can decide if turning a house into a duplex is a good idea or a huge headache. If you have sound reasons for wanting to do it and are confident that, despite the work involved, it’s going to be worth it, then the answer is probably a “yes.”
If the steps required seem daunting or you’re unsure of the rental market in your area, then your answer is probably a “no.”
But one thing is for sure: It isn’t a decision to make lightly.
“Turning a single-family home into a duplex can be a lucrative venture if done right,” Steppling says. “And that’s a big ‘if.'”
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How to Turn Your Home Into a Duplex originally appeared on usnews.com
