Many new and seasoned home owners alike realize that servicing their mortgage can put great strains on their financial situation. This is even more so true when people are moving into more expensive houses where they need to borrow more to afford it. One often overlooked way of easing the financial burden is to either buy a house with a basement suite that can be rented, or else to convert your basement so that it can be rented out.

Investing an extra $10-20,000 dollars into a basement remodel can be well worth it if it means that you can have  a big portion of your mortgage paid by someone else. Instead of shouldering the burden for example of a $3000/month mortgage, with a tenant in the basement at a rent of $1000/month, suddenly you now have a $2000/month mortgage.

These figures obviously are not universal, and the above example is simply meant to illustrate a point, but the message should be clear. In the Vancouver housing market, many families choose to rent out their basements as a way to offset their mortgage because property values are so high. This method allows people to live in a bigger, nicer home, in a more desirable location without taking on so much extra financial burdens.

But what about tenant issues?

Well as with everything in life there is risk and the risk of a bad tenant never goes away but proper due diligence can drastically reduce your chances of ending up with a nightmare tenant. Follow these simple guidelines to decrease the chance of a bad tenant.

-Do a credit check (bad credit? Steer clear, you don't want to be chasing people for rent)

-Don't jump at the first person who applies, if you just don't feel right about a tenant then don't feel rushed to get someone in right away. Take your time, and settle on someone you feel good about.

-Do reference checks. Treat tenants like you would a potential employee and ask for referees. A great tenant will have no problem providing references and hopefully ones from previous landlords.

So while the Vancouver Real Estate market is expensive, renting a basement suite is one way that you can greatly alleviate some financial obligations.

How much has the value of your Metro Vancouver detached home increased since January 2006? While every community made gains, two areas in particular saw home prices almost double in five years, according to the Real Estate Board of Metro Vancouver.