@Jesse360 If guests are "turned off" of renting, just because the owner occupies the basement suite, personally, I wouldn't want them as guests.
There are plenty of on-site host listings. Private rooms in the host's home, private self-contained suites in the host's home, backyard cottages on the property where the host lives, etc.
It is actually good insurance for entire place properties, as guests who have nefarious intentions to throw parties, sneak in extra guests or pets, etc, are unlikely to book places clearly indicated as "owner-occupied" properties.
You using the basement suite is a better scenario than the other way around, btw, as guests in a basement suite will often have complaints about hearing footsteps and other noise from above.