Adding an extra bedroom in a shared house, should I decrease rent

[Ronnie Hutchinson]

I currently have a 3/2 that I rent by the room. They are two main living rooms, I am thinking about taking one of the living rooms and converting it to a bedroom. Of course by a license contractor with the correct permits, etc.

My main qquestion is, since there is going to be an additional tenant should I decrease the rent by 5% for the current tenants? Or should I leave it the same?

[John Teachout]

Your current tenants are going to be getting "less" for their rent. I do feel a rent reduction would be appropriate. However, I would be concerned about the quality of life impact it may have on the residents. ie, what works for 3 rooms in a house may be a struggle for 4. Would you be adding bathroom space or would the bathroom access be further reduced by adding additional additional tenants? What about fridge space, laundry access, etc. Think this through well so you don't shoot yourself in the foot.