Making a small living room even smaller?

Question

I am currently analyzing a potential duplex for purchase and I had a quick question about adding an extra bedroom and the extra rent that doing so could generate.  One of the units is a 2bd/1bath with an interesting layout and is rented for $600 per month. The unit is approximately 480 square feet.  It has two official bedrooms, but then there is a medium sized "living room" with a dividing wall in the middle with a larger than normal door frame just without the door. This extra extension of the living room has it's own closet and everything.  The simple addition of a door would allow it to meet the requirements to be classified as a bedroom.  The current tenant is already using it as an unofficial spare bedroom anyways. It is an open concept kitchen/living room area, so officially dividing it wouldn't make the new small living room unbearably cramped. If divided, the 3 bedrooms and living room would all be approximately the same size.

My question is, if I go ahead with creating the extra 3rd bedroom, can I expect to be able to get the rental increase that comes from the difference of a 2 bedroom unit compared to a 3 bedroom unit? My hesitation is that the monetary rental difference that is reflected in rentometer between 2 bd and 3 bd units is likely also due to the increase in square footage between the two.  Would creating this 3rd bedroom increase the rent I could charge even if it means making an already small living room even smaller? Has anyone experienced any drawbacks from having a small living room in their rental?  Any input or advice is greatly appreciated, and thanks in advance!

- Lucas Duce

Bryan O. · Answer

@Lucas Duce just look online. Don't use Rentometer, look for rentals like you are a tenant in your area. Get on Zillow, Hotpads, or whatever you think your tenants will come through and look for rentals in your area. You will be able to see what is out there (2 or 3 bed) and what the sizes are, then you will know what it means for you.

Cara Lonsdale · Answer

How would you define small?  Can you provide some measurements of the proposed new living room space?

If the total unit sq ft is only 450, and you have 3 bedrooms, likely 100sq ft or slightly under for each one, then that only leaves 150 sq ft (or less after bathroom and closets are deducted) for BOTH the kitchen and living area.  That seems tight!  Consider that you have to be able to fit a dining room table/chairs in there too.

Without seeing it or knowing measurements, it's hard to speculate.  3 bedrooms are better than 2, but not if you don't have any room to turn around outside of your bedrooms.  Remember, more bedrooms mean more people.  More people sitting on couches.  More people needing chairs at the dining room table.