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

11 Replies

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?

@Ronnie Hutchinson

This is a business. Treat it like it. You are not dividing one of the bedrooms into two. You are adding a bedroom. Leave it the same and call it a day. You are the landlord. You can do what you darn well please with your property. If the tenants don't like it, well...there are other properties they can go rent from.

Besides, remember, you are about to add another individual to your property. So that means, more electricity usage, more water usage, more wear and tear. You need to be compensated for that.   

You are adding another tenant, but you are also taking away some of the common room.  I might offer the existing tenants a discount during the renos as they will be inconvenienced.  

Also they rented a room in a 3/2 if they want out of their lease because there will now be a 4th person, I would be understanding.  Do not offer them an out, but let them come to you with that if it is a problem.

@Ronnie Hutchinson your current tenants are losing the use of that second family room which could technically be seen as a violation of the lease. You agreed to rent them a room in a house with two living rooms and now you are taking part of the house away and increasing the number of people using the bathrooms, parking, etc. 

If your tenants are OK with this, move on. If they gripe, I would probably wait and make the change when their leases are up for renewal. As for pricing, I would study the market and determine what they're worth and charge that.

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.

Originally posted by @Fareed R. :

@Ronnie Hutchinson

I have a 4 bedroom 2bath with 1 bathroom with MB and the three other rooms share 1 bath. I feel that’s one reason I’m having issues renting it out, too many ppl sharing one bath.

Are you going to be adding an bathroom as well?

Nope, I plan on having 3 people share the bathroom. I'm already doing it in a 5/3 and have no issues. I have a cleaning schedule posted in the bathroom where everyone rotates cleaning, so if it's not clean in a particular week that I visit I'll know who's not cleaning. 

 

Originally posted by @Brian Adzadi :

@Ronnie Hutchinson

This is a business. Treat it like it. You are not dividing one of the bedrooms into two. You are adding a bedroom. Leave it the same and call it a day. You are the landlord. You can do what you darn well please with your property. If the tenants don't like it, well...there are other properties they can go rent from.

Besides, remember, you are about to add another individual to your property. So that means, more electricity usage, more water usage, more wear and tear. You need to be compensated for that.  

You are the reason some landlords get such a bad rep. Him taking away one livingroom can violate the lease agreement and can leave him exposed to legal suit