Anyone had an increase in occupancy and revenue by adding a full bath?

Question

About 3 months in with my 2/1 in Greenville SC. Occupancy and revenue has been pretty good but could be better. I realize that time on market is a factor here as I build reviews (11*5 stars), and I should qualify for superhost in July. In general I am happy with the performance and I am profitable.

That said, there is a house around the corner that is on a less desirable street, no W/D, and not pet friendly that is booked 90%+. The rates, interior furnishing and rebab quality is similar. If anything, my place has more comfortable furnishings, a better kitchen and more character. Aside from superhost status and more reviews, the only strong differentiator of the other house itself is an extra full bath, whereas I have only 1 bath total and you have to walk through the whole house if you are in the other bedroom.

I do have existing footprint space (roofline covered front patio) where I could add an extra full bath with minimal disruption and an excellent contractor who thinks he can do it for <$10k. Plus with bonus depreciation and the ability to force appreciation and cash out refi I am not concerned about the cost, and I could do the work during the slower winter months.

Has anyone added a bathroom and seen it make that big of a difference? Thanks in advance!

Andrew Steffens · Answer

I agree that $10k is a worthwhile investment. If you capture 6 more reservations per year with an average of a 4 night stay is 24 nights and even at $150 per night average as a guess you are at $3600 per year or a 36% ROI. Not to mention your increasing property value.

Richard Elvin · Answer

@Jon Martin You indicated you're not really pursuing, or at least not getting many, families staying with you. There's five of us in my family and we won't even look at an STR without two bathrooms. If one only has a single bathroom, we're likely going with a hotel for the price point or we'll find a different STR. IMHO the extra bathroom is worth the trouble, especially with all the secondary reasons you mentioned.
I realize that I'm not likely in the demographic you're aiming for, but hope this is still helpful.

Jon Martin · Answer

Thanks @Michael Baum yes I keep a close eye on nearby comps but given the transitional nature of the area there is a lot of variability and noise between them so it's hard to see a clear pattern. Some are on streets a few blocks over where flips and new construction are on otherwise rough looking streets, and this is reflected in some of their reviews (including the comp I mentioned), whereas 1-2 blocks in the other direction and you are in fully gentrified hipster land. I'm in between in the DMZ lol.

Part of me is wondering if the other place having more reviews and superhost status is helping them stay occupied more so maybe they are simply 3-6 months ahead of me progress wise. That said, with all other things being equal I agree with your last sentence and it would obviously be a better experience for more guests.

Will see how my occupancy pans out through summer, but June is at 60% overall and has been booked solid through the 19th so things are looking good!

Bonnie Low · Answer

One thing to keep in mind is the missed bookings you may have from a 1 bath unit. While it may be true that others with one bedroom units or larger homes that say are 5 or 6 bed/2bath so the ration of bedrooms to bathrooms is not very high, aren't getting complaints from the people who book them. But how many people are NOT booking them for that very reason? I find this is always a controversial topic, much like whether you should put a King bed in a room if you have the space vs a queen. Those who are on Team Queen Bed will insist it's not hurting them. Those like myself who are on Team King Bed know that there are people who will not book a unit that doesn't have at least one King bed. How do I know this? Because, as a guest, I'm one of those people. I think the extra bathroom thing is the same way. Even when it's just myself and my husband traveling we always look for 2 bathrooms. Would I stay in a 1 bathroom and then complain it only had 1 bathroom? No. I just wouldn't book it in the first place. If you can get a bathroom done for that cost in your slow season and you have the space, run the numbers and see if you think the ROI justifies it. It will always make your resale value higher, as well.

Michael Baum · Answer

Hey @Jon Martin, Pack-N-Play has been a big win for us. It saves space in the car when they don't have to bring one.

Adding things like a chair mounted high chair (which I think you mean booster seat), little step stools in the bathroom cabinets and we actually have a Diaper Genie as well.

Jon Martin · Answer

@Richard Elvin that absolutely is helpful and a good way to look at it. You only know who you are attracting, but it's tougher to know who is being turned away. At some point I will probably send a pack n play, booster seat, and some other baby items out there whether I make this change or not, which I most likely will, it's more of a matter of when.

Even getting more pairs of couples or non-partner travelers would be a win.

Leslie Anne Morris · Answer

1 bathrooms perform a lot lower. It happens here in the Smoky Mountains also.

John Carbone · Answer

I must be getting really lucky on mine.

Michael Baum · Answer

Hey @Jon Martin, I believe for the 10k it would be a worthwhile investment for both your nightly rate and for equity and resale.

Let's say you get 2 couples. Each couple could have their own bathroom and that would be a big deal.

Have you checked other comps besides the one near yours? Check all the 2/2's and see what their nightly rates, but seeing as you have one close by that is a 2/2 that is doing better than yours, I think you have your answer.

John Carbone · Answer

my 4 bed with bonus room only has 2 bathrooms and sleeps 8-12. I’ve never had a guest have an issue with only 2 bathrooms, and I don’t have an open day all summer through early august. I have a 1 bed with a loft sleeps 4 with 1 small bathroom 1000 square feet. I kind of view bathrooms as wasted square foot given the cost they are to put in from a rental perspective. Much bigger roi expanding and adding amenities in my opinion. Maybe a hot tub or arcade game (unless you already have them)

Anyone had an increase in occupancy and revenue by adding a full bath?

Anyone had an increase in occupancy and revenue by adding a full bath?

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