To studio or not to studio

Portsmouth, New Hampshire
Multi-Family and Apartment Investing
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To studio or not to studio

Andrew BoscoBusiness Member
Rental Property Investor · NH · Member since 2023 · 446 posts · 420 votes

One unit in our Portsmouth building is a small efficiency studio. We're keeping it that way on purpose

It's literally workforce housing. It's small, the ceiling is low, and it's about a half mile to three-quarters of a mile from downtown Portsmouth.

In a city where housing costs are as high as they are, that's a real product. Someone can live walking distance to work in Portsmouth without paying Portsmouth house prices.

So we're not trying to turn it into something it isn't. We looked at spending about $30K to raise the ceiling, and it's probably not happening.

Instead the scope is simple. Rewire it. New floors and paint. Clean up the questionable spots. Add storage and hooks so a small space actually works day to day. Then rent it at a price that fits the unit.

Here's why I like that in a 4-unit. It spreads the rent roll across different renters. A studio renter, two 2-bedroom renters, and a big unit that feels like a house. If one piece of the market softens, the whole building doesn't go with it.

The trade-off: a studio this small won't be the rent leader. It's there to be the easiest unit in the building to keep filled.

Just be aware, I'm still pulling current Portsmouth studio rents before I set a number. I'll share it when I have it.

What would you do with a unit like this? Keep it simple, or invest to push the rent?

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  • Vaibhav PuranikPro Member
    Member since 2025 · 98 posts · 55 votes
    1d

    Based on the reading, my vote is for the "Rewire it. New floors and paint. Clean up the questionable spots. Add storage and hooks so a small space actually works day to day." Mainly because, I think you might need to do that with raising ceiling too. You might as well do this first, get whatever rent you could and then when the market shifts, spend more money on it. I don't know how Portsmouth market is right now, but all indications everywhere else are a slowing market. In such a slowdown, it might not make sense to spend a lot of money on something. It may not get the more rent you wanted.

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 519 votes
    18h

    Generally studios will be able to rent more easily compared to more expensive, larger units if in area that's close to jobs and has enough people in that area that is looking for that type of housing. It makes sense to have it be in good enough condition to get the rents you want. Some renters in the studio market are looking to keep expenses down so having the property be in good enough condition to capture the rents you want while being competitive on price compared to other comparable rentals will help to keep the vacancy filled, and you getting the return you think makes sense.

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  • Levi Rawlings
    Real Estate Agent · Portland, ME · Member since 2021 · 8 posts · 3 votes
    16h

    Keeping the scope simple makes sense, and Vaibhav's point about not spending heavily into a slowing market is fair. I'd add two things that affect how the studio plays when you eventually sell or refinance.

    First, the paperwork. A future buyer or appraiser will look at what the city has the building on record as. Before the work starts, confirm the studio is recorded as a unit, and if the rewire needs a permit, pull it. A documented electrical upgrade is something a buyer can verify. Undocumented work in a small, low-ceiling unit tends to get discounted in diligence.

    Second, the rent. Since the studio's job is staying full, set the target around vacancy and turnover cost rather than top-of-market rent. When you pull Portsmouth studio comps, note how long each one sat. A rent slightly under the comps that saves a month of vacancy a year often comes out ahead, and a stable, documented rent roll is what the next buyer underwrites.

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  • Inder Singh
    Real Estate Agent · Boston, MA · Member since 2025 · 46 posts · 16 votes
    8h

    Keep it simple, Andrew. That studio is doing a job in your rent roll — a lower-rent workforce unit diversifies the tenant mix and usually turns cheaper than a top-of-market unit. With my own multifamily in Worcester and Warren, the units that pencil best long-term aren't always the ones with the highest rent, they're the ones with steady occupancy and low turnover cost.

    I'd do the rewire, floors, paint and storage, price it honestly for what it is, and skip chasing a rent the ceiling height won't support. Clean, safe and functional wins for that tenant pool.

    Curious what the simple refresh pencils to vs. current rent. Happy to connect — DMs open.

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