Add a bedroom to single family house

[Lina Vezzani-Katano]

Can you add a 3rd bedroom in an already rented out 2 bedroom single family house? Do you need the permission for the tenants who already live there? Can you then increase the over all rent, but still low enough so that the current tenants wouldn’t be paying more than what they are paying now?

[Nathan Gesner]

Quote from @Lina Vezzani-Katano:

Can you add a 3rd bedroom in an already rented out 2 bedroom single family house? Do you need the permission for the tenants who already live there? Can you then increase the over all rent, but still low enough so that the current tenants wouldn’t be paying more than what they are paying now?

Welcome to the BiggerPockets forums!

You would disturb the tenant's right to quite enjoyment by renovating the house and then you would essentially change the terms of their lease by adding another roommate to share the kitchen, bathroom, living room, parking, etc. If you are going to change the terms of a rental agreement, you need all parties to agree or you need to wait until the current lease expires.

Have a conversation with the current renters. If they're willing to accept the changes, go for it! If not, wait until their lease expires and they move out, then renovate and find new renters willing to pay the higher rate.

[Jeet Sangha]

Quote from @Lina Vezzani-Katano:

Can you add a 3rd bedroom in an already rented out 2 bedroom single family house? Do you need the permission for the tenants who already live there? Can you then increase the over all rent, but still low enough so that the current tenants wouldn’t be paying more than what they are paying now?

Yes, you will need their permission because of the disturbance. If you are going to do extensive renovations. I think it would be best to wait until their lease is up. If they are month to month, you can give them a 30 or 60 day notice (depending on the length of residency) to vacate and then do the renovations. Is there a specific reason you want to add a 3rd bedroom while it's occupied?

[Lina Vezzani-Katano]

Quote from @Nathan Gesner:

Quote from @Lina Vezzani-Katano:

Can you add a 3rd bedroom in an already rented out 2 bedroom single family house? Do you need the permission for the tenants who already live there? Can you then increase the over all rent, but still low enough so that the current tenants wouldn’t be paying more than what they are paying now?

Welcome to the BiggerPockets forums!

You would disturb the tenant's right to quite enjoyment by renovating the house and then you would essentially change the terms of their lease by adding another roommate to share the kitchen, bathroom, living room, parking, etc. If you are going to change the terms of a rental agreement, you need all parties to agree or you need to wait until the current lease expires.

Have a conversation with the current renters. If they're willing to accept the changes, go for it! If not, wait until their lease expires and they move out, then renovate and find new renters willing to pay the higher rate.

Thank you for your insight and I think you are completely right, it would be of a disturbance. I will implement a plan once their lease is up. 

[Lina Vezzani-Katano]

Quote from @Jeet Sangha:

Quote from @Lina Vezzani-Katano:

Can you add a 3rd bedroom in an already rented out 2 bedroom single family house? Do you need the permission for the tenants who already live there? Can you then increase the over all rent, but still low enough so that the current tenants wouldn’t be paying more than what they are paying now?

Yes, you will need their permission because of the disturbance. If you are going to do extensive renovations. I think it would be best to wait until their lease is up. If they are month to month, you can give them a 30 or 60 day notice (depending on the length of residency) to vacate and then do the renovations. Is there a specific reason you want to add a 3rd bedroom while it's occupied?

Thank you for your reply! It was a plan to add more revenue for me by increasing the rent because it was going to cost me a lot for a basement renovation. Would I be able to not renew the current tenants’ lease in June 2023 because of this renovation, but that they are welcome to reapply again once the renovation is finished?

[Eliott Elias]

This is a long shot. Construction like that is a major liability with tenants in place. I would wait till the lease ends and do this addition