what to do with "bonus room" in rental

Question

Input please! I have a 2500 sq ft 3 bed 2 bath 2 living 1 dining and one bonus room rental. I'm having the slab in the bonus room demolished and re-poured in a few weeks cuz it was botched job back in the 1960's. This room was once a 2 car garage but was completely enclosed at some point, windows were added, closets, and doors to the outside and central air piped in. It's always advertised as a bonus shop room/mancave or craft room whenever I've rented it out. My mind has been spinning with ideas lately since I'm having the foundation re-poured, what else can i do to this room to maximize it's income potential. It's the kind of room you would expect to see a pool table in. I've thought about beautifying it into a 4th bedroom. Thought about converting it into a small efficiency, but there is no plumbing in that room. Anyone have any experience with an odd, extra room in a rental? Past tenants have used it for storage of art supplies, or to keep reptiles and whiffle board table.
Thoughts on maximizing its potential?

Lynnette E. · Answer

I have a 4 bedroom house and a 5 bedroom house.  I did get applicants with way too many unruly kids, single mom's with 9 kids, etc.  But I also got a LOT of multigenerational families applied.

The 4 bedroom has a married couple and their one child, plus his retired police officer father and her medically needy mother.  Great family, lots of income and the kid always has 2 adults at home!

The other house has a married couple, their in college son, and her mother.  One bedroom is now a pool table, game room and the other is storage/pets.

I think that if advertised as two master sized bedrooms or large bedrooms you will attract the multigenerational families.  It also helps if you have at least one handicapped fitted bathroom.  They generally have working income for the parents and retirement pensions/SS for the older generation.

Though if the extra bedrooms are small, fitting twin or full size beds, you likely will attract a slew of kids!

Max T. · Answer

@Keith A.

A bedroom seems like the easiest way to add value. Around here that means >100 sq ft, a closet, and a window.

Ideally it also doesn’t require passage thru another bedroom to get there.

An extra bedroom should rent/sell for more.

Kim Meredith Hampton · Answer

@Keith A. I would think about turning it into a 4th bedroom since you don’t have plumbing. You always get more rent with a 4th bedroom

Lynnette E. · Answer

A 4th bedroom or maybe with working at home being very popular now, an office, especially if you can put in an outside door for customers/clients to enter.

Ginger Brown · Answer

@Keith A. I would turn it into a 4th bedroom or back into a garage depending on if your market does better with garages. Mine does..

Alecia Loveless · Answer

@Keith A. In my area there’s not much added value in rent increase above and beyond a 3BR. You’d likely only generate $30-40 more for a 4thBR.

I’m in a little bit of a similar boat I’ve got a 3rd room that you can only access by walking through the second bedroom and it has an outside entrance in one of my units so I call it a bonus room. I believe my current tenant grows plants in it.

If you self manage maybe try contacting a management company if you’re not that familiar with the pricing differences and see if a bedroom or a bonus room is a better value.

Christie Duffy · Answer

@Keith A. Sounds like a master bedroom opportunity - walk in closet perhaps - or if big enough maybe divide into 2 new bedrooms

Keith A. · Answer

Gabe that is great info for sure. And that is a lot of people under one roof. So much to consider...

Gabe T. · Answer

@Keith A.

I’ve heard mixed things about a 4th room.  I have a 3br2ba rental, with a spare room that was a converted single car garage.  When I bought it it was closed up but not finished.  I ended up finishing it since it looked sloppy, but my property manager advised to advertise it as a 3br2ba with a spare room, instead of advertising as a 4br.  The reason being that very large families can look for 4br homes, and the increase in rent isn’t very much.  Where I am, max occupancy is 2 people per room plus 1.  So you could potentially have 9 people in that home.

I’m now looking into building an ADU, and was choosing between a 2br2ba or 3br2ba, both 1000sf.  Property manager advised me to go with 2br2ba, by the same thinking.

Would be very interested to hear what the community thinks about this.

Theresa Harris · Answer

Sewer line is a problem.  The size isn't.  A 2 car garage can provide a good amount of space for a studio apartment.

what to do with "bonus room" in rental

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