Finally reached our goal of getting a property under contract in 2020. Hoping to close by end of Dec or beginning of January. The home we bought is a 3bd/2.5ba. There is plumbing in the basement for another full bath and rough framed for another bedroom. According to the septic inspection report, it is sized for a 3 bedroom home. Is it worth getting the approval for the 4th bedroom or just have it as an "office"?

It is a walkout basement and the 4th room in question does have a window that meets egress standards.

Which township is this house in? Many local townships now will limit STR to 2 people per bedroom. If you add a bedroom, you might need to modify your septic tank, but would allow more people to rent, so possibly worth it?

East Bay Twp.  2 people per bedroom and then 4 additional for the house.  So 3 bedroom can have 10 people.

@Vickie Smith as Derek mentioned it is in East Bay Township.

I know some people when they build homes they have an office but can act as another bedroom/sleeping quarters. It may not have a closet but would at least allow another place for a bed or bunk room.

Congrats on your purchase! East Bay is one of the easiest townships to have a STR in Traverse City -- Good luck!

@Vickie Smith thank you and that's great to hear! We are very excited to get the renovations started and post the property on the STR market!

@Bob Lett, TC is a great place to be! You should have good luck getting people from Horse Shows By the Bay to rent for long periods. I've got a buddy that does very well in the summer with that particular event. I'm over on the other side of town with just one STR and it does well thus far. Different demographic though from the east side.

@John Fahey Indeed it is! I love it up there. Would love to find a home on Lake Lelenau next! Thanks for the insight on the horse shows!

@Bob Lett , I can get you that contact info if you'd like.  Or go to winterwoodpropertymanagement.com.  Good luck!