Updated about 6 years ago on . Most recent reply
Comps for Studio Apartment
Hello everyone,
I'm looking into buying a 4-plex. This property is located in central CT. It contains two 3 beds 2.5 bath houses and two studio apartments.
looking at Zillow and other sites in not seeing a comp for a studio apartment. How do you determine what the comp on something like this should be?
is this a sign that studios do not to well in the area? the town is known for families and is on the pricier side. would it make sense to combine these apartments as extra bed/bath for the main houses?
Most Popular Reply
@Benjamin Danard, it's worth considering furnishing the studios (maybe start with 1) and dipping your toe in the traveling nurses market. Cheshire will be an attractive town, I would think. Of course, your upfront and operating costs will be higher, but you'll command much higher rents.
Overall, I see studios renting for 20-30% less than a comparable 1 bedroom. I think the key is raising the finish/amenities of the studio to compete with a 1-bed (e.g. have a dishwasher in an area where most apartments don't) and then charging just a bit below the 1-bed price. You want a potential tenant to think, "Yeah, it's a studio, but it has so much more and for less money." Consider adding storage space in the basement to remove that potential objection. You may even be able to charge for it.