It’s easy to see the appeal. A basement apartment can bring in extra cash, boost your home’s value, and make better use of space you’re barely using. But it’s not all upside. The process involves permits, building codes, a serious financial investment—and once it’s done, you’re officially a landlord, with all the responsibilities that come with it.
Here in Franklin, the question is even more layered. Our charming, fast-growing community is seeing a surge in population and property values, but zoning laws are still strict. What flies in Nashville or Brentwood may not pass in Williamson County. That’s why we always advise our clients to weigh the big picture—not just the potential rental income, but also the long-term impact on privacy, resale, and lifestyle.
At Sebring Design Build, we’ve helped plenty of homeowners in the area take on basement conversions—and just as many decide not to. This guide is here to help you make the right choice for your situation. We’ll walk you through the real pros and cons, local considerations, and what it really takes to make a basement rental both legal and livable in Franklin.
Let’s get into it.
The Upside
1. It Can Bring in Solid Income
Let’s start with the obvious one. A finished basement rental in Franklin could bring in anywhere from a few hundred to a couple thousand dollars a month, depending on where you live, how nice the space is, and what amenities you offer. That kind of money can help with your mortgage, cover other bills, or let you save up for future renovations.
2. Boosts Your Home’s Value
Buyers love flexibility. A house with a legal, income-generating unit—especially one that looks great—can be more appealing when it’s time to sell. It adds square footage, functionality, and potential future income, which can all raise your resale value.
3. You’re Using the Space Smartly
If your basement is currently a catch-all for storage bins and random stuff, why not put it to better use? Turning that area into a livable space means you’re squeezing more value out of the home you already own. You don’t have to build an addition—you just rework what’s already there.
4. Possible Tax Deductions
If the unit is truly separate and rented out full time, you may be eligible for tax breaks. Things like a portion of your mortgage interest, property taxes, repairs, and even some utilities could be deductible. Just check with a tax pro who knows Tennessee rules before banking on it.
5. You’re Helping Fill a Need
Franklin’s growing quickly, and affordable rentals are getting harder to find. If you build a safe, legal, and reasonably priced unit, you’re not just making extra money—you’re also helping meet a real housing need in our area.
The Drawbacks
1. It’s Not Cheap to Do It Right
Basement conversions cost real money. We’re talking upgrades to plumbing, electrical, and HVAC systems; installing egress windows for safety; possibly adding a separate entrance; building a kitchen or kitchenette; and soundproofing. In Franklin, a full renovation could run anywhere from $25,000 to $100,000+, depending on how far you go.
2. You’ll Have to Navigate the Rules
Franklin and the rest of Williamson County don’t just let anyone build a rental unit on a whim. There are zoning laws, building codes, permits, inspections—you name it. Skip the red tape and you risk getting fined or being forced to tear work out. No one wants that.
3. Privacy Can Take a Hit
Even with a separate entrance, having a tenant under your roof changes the dynamic. You might hear them walking around, see them in shared spaces like the driveway or backyard, or just feel like you’re never truly alone at home. That’s something you have to be okay with.
4. Being a Landlord Is Work
This isn’t totally passive income. You’ll need to screen tenants, collect rent, stay on top of maintenance, and be ready to handle issues—whether that’s a broken toilet or someone falling behind on payments. It can be manageable, but it’s still a responsibility.
5. It Might Not Be Everyone’s Cup of Tea
Not all future buyers want a home with a basement apartment. Some may see it as a bonus, others as a headache. And if the unit wasn’t done to code, that could come back to bite you during resale or appraisal.
Before You Start: Ask Yourself These Questions
If you’re still considering it, take a moment to think through the following:
- Is there enough rental demand near me?
Franklin’s a mix—downtown, Cool Springs, and areas near Columbia State Community College see more demand. But some neighborhoods are quieter and less renter-friendly. Do some local digging. - Can I cover the cost—and the surprises?
Always budget more than you think you’ll need. Renovations rarely go exactly as planned. - Am I ready to deal with tenants?
If you’re not into late-night repair calls or handling conflict, consider hiring a property manager—or maybe rethink the whole idea. - Can I make it fully legal and code-compliant?
Don’t wing it. Make sure your project can pass all inspections, especially if you’re adding kitchens, bathrooms, or separate entrances. - How will this affect my everyday life?
Consider how much you value peace and privacy. Renting out your basement isn’t like renting out a house across town—you’ll likely see and hear your tenants more than you think.
Tips for Doing It Right (Especially in Franklin)
If you decide to go ahead, here are some things we always recommend to clients:
- Talk to the City Before You Build
Don’t assume you can just start swinging hammers. Check with Franklin’s building department first to find out what’s allowed. - Hire Contractors Who Know the Local Rules
Building codes and permit requirements vary. Make sure your team has experience working in Williamson County. (At Sebring Design Build, this is our backyard—we know it well.) - Invest in Soundproofing
It may seem optional, but it’s not. Good soundproofing protects both you and your tenant’s privacy. - Build a Separate Entrance If You Can
Tenants want to feel like they have their own space. It’s more comfortable for everyone. - Vet Tenants Carefully
Background checks, references, clear expectations—don’t skip this step. You’ll thank yourself later. - Use a Clear, Legal Lease
Spell out everything. Rent due dates, what’s included in utilities, who handles repairs, how much notice is needed to move out—don’t leave any gray areas. - Keep a Maintenance Fund on Hand
Things break. Be ready for it, financially and mentally.
Wrapping It Up
Converting your basement into a rental unit can be a smart, strategic move—but only if it fits your goals, your budget, and your lifestyle. For some homeowners in Franklin, it’s a great way to create passive income, add long-term value, and make better use of the space they already have. For others, the cost, red tape, and lifestyle shift may not be worth it.
The key is going in with eyes wide open. Make sure you understand what the city and county require. Know your renovation numbers. Be realistic about what it means to be a landlord, especially when your tenant lives right downstairs. And always—always—work with a team that knows what they’re doing.
At Sebring Design Build, this is exactly the kind of project we love to take on. We’ve helped homeowners across Franklin turn cold, unused basements into beautiful, fully code-compliant rental units that feel like natural extensions of the home. Whether you’re still kicking around the idea or you’re ready to dive into design, we’re here to make it happen the right way.
Want to know if a basement rental makes sense for your home? Let’s talk. We’ll walk you through the process, answer your questions, and give you honest feedback based on years of local experience.
Reach out today and schedule a free consultation. Let’s build something smart together—something that works for you now and adds value for years to come.
