I'm currently looking at buying a property that is listed as 3 units and 6 bedrooms. However, after visiting the property I noticed the current owner just slapped a door over the living room and called it a 2 bedroom. So this means that there is no shared living space and two separate rooms. How do you price the rent for a unit like this? Should it be the same price as the other 2 bedrooms in the area?
@Ahmad Nassar Is that even legal?
I would buy it only if I were getting it at a 3BR price.
That's a one bedroom unit, and should be rented as such.
@Grant Rothenburger I have no idea. This is my first rodeo.
@Ahmad Nassar Glad to help. We bought one like this- they claimed one apartment was a two bedroom in the hopes of getting a larger price, we've rented it as a one bedroom. If you do buy it, study every detail- they are likely smearing some details somewhere else too. In our case, the seller listed the rents but neglected to mention that he'd taken a hefty discount for prepayment on one apartment, and put a clause in each lease stating the rent would remain the same upon renewal.
In order for something to be legally considered a bedroom, in most jurisdictions, it must have its own access door and you must not need to walk through it to get to another room. (i.e. you walk through one bedroom to get to the other). usually it also must have a closet, sufficient ceiling height, and 2 means of egress. Now, I believe there are ways around this by calling it a 1/2 bedroom or saying 1 bedroom plus a flex room, etc. As a purchaser, that's a 1 bedroom and you should be comping it with other 1 bedrooms, ESPECIALLY since he turned the living space into a bedroom. A 1 bedroom with a small office that can be used as a bedroom is worth more than a 1 bedroom, but a 1 bedroom where the living space has been converted to a bedroom, is just a 1 bedroom with a door on the living room.