Basements are a fantastic feature to have in a home. They offer you tons of extra space to turn into a bonus room, bedroom, in-law quarters, or even an entire apartment to rent out. The latter has become a very popular income opportunity for many homeowners to help offset the costs of their mortgage.

There are certain challenges to turning a basement into a desirable apartment, but none that can’t be solved with clever design and construction. I definitely recommend hiring an experienced contractor to help you see the renovation through, but if done right the short-term investment will usually increase the overall value of your property and create a new income stream once you rent it out. Speak to a real estate agent in your area to find out exactly how much you should be investing to get the most return.

Here are 10 ideas of beautifully renovated basement apartments that show the incredible potential of this space.

An open floor plan like this helps a basement apartment feel spacious and airy. The walls and ceiling were also painted the same light, neutral color to keep it from feeling closed in.
Source: About.com

Exposed floorboards on the ceiling give this basement some loft-like character.
Source: The Dallas Morning News

Glass panels on the door leading into the bedroom help the light from the windows pour into the main living space.
Source: This Old House

Mirrors do wonders for making a small space feel more open by reflecting light.
Source: Home Goods

This half-wall is a great alternative for a small basement to give the bedroom privacy while keeping the open feel.
Source: Coroflot

Curtains around the bed provide a luxurious look that distracts from the lack of windows.
Source: Tobi Fairley

Lighting is crucial in a basement apartment. In this basement, cleverly scattered recessed lighting, sconces, lamps, and chandeliers provide plenty of light and style.
Source: W Network

The little detail of exposed brick around the window added a touch of character to this galley kitchen.
Source: Scott McGillivray

A murphy bed is perfect for a small space. In the case of a basement apartment, it can serve as either the main bedroom or offer a place for guests.
Source: House & Home

Light colors are the best way to go in a basement apartment to make the space feel larger and brighter.
Source: Better Homes & Gardens

Would you ever consider renovating your basement into an income apartment? What do you think are the pro’s and cons?

Warm regards,
Megan