What kind of basement? what type of access does it have? size of windows? and doorways?
If you are renting out the basement with the rest of the house it is ok to do so as long as no one is sleeping down there.
To collect more than 1 rent or have 2 separate households, in a single family house could be breaking zoning laws regardless of type of basement.
The town also has this on their website, http://southorange.org/TenantLandlord/ .
in most towns there are heavy liabilities for this and regulations to follow when renting any portion of a home, not the least of which is direct access out of the unit in case of a fire. Plus if its not a legal apartment and something happens there could be criminal penalties too.
No, it isn't legal to arbitrarily rent out (multiple) rooms in a single family house (thereby turning the house into a rooming house). You need to check with the town building codes, zoning regulations, fire inspection codes and any other restrictions.
In addition - if a basement doesn't have egress (a way to get out in an emergency) , it usually can
t be consdiered as a legal bedroom.............so, there will be a huge liability incurred if it is used as such.
Another issue that needs to be investigated is homeowner's insurance.