I imagine it's situation specific, but does anyone have any thoughts/experience converting a car port or garage into an extra bedroom to increase rental income? I'm trying to think of ways of increasing cashflow on a property other then just putting down a larger down payment.
-Jason
General Contractor · Scottsdale, AZ · Member since 2008 · 100 posts · 7 votes
20y
This is done quite a bit in our area. If you convert the garage to another room - make sure you get it permitted. If you sell later and its SF that was not permitted, you may have problems selling and with the county tax assessor and the city.
Also, if you convert the garage, you can add a metal or wood carport in front of the garage for parking if that's important to you.
Another suggestion, float in concrete so you don't step down into the garage. It will create the feel that this wasn't an add on.... unless, you decided to re-convert back to a garage later ... forget it.
If you convert the carport into anything -- where will your
tennants park?
In the apartment complexes I've lived in, covered parking
could be had for an extra fee each month.
Maybe you could rent the carport that way and save the
cost of conversion.
If a prospective renter is considering renting a sf home, will
they not expect to be able to park in a garage or carport?
Isn't that part of living in a single home?
General Contractor · Scottsdale, AZ · Member since 2008 · 100 posts · 7 votes
20y
This is done quite a bit in our area. If you convert the garage to another room - make sure you get it permitted. If you sell later and its SF that was not permitted, you may have problems selling and with the county tax assessor and the city.
Also, if you convert the garage, you can add a metal or wood carport in front of the garage for parking if that's important to you.
Another suggestion, float in concrete so you don't step down into the garage. It will create the feel that this wasn't an add on.... unless, you decided to re-convert back to a garage later ... forget it.
Residential Real Estate Broker · Conroe, TX · Member since 2008 · 1k+ posts · 43 votes
20y
I recently spoke to one of my appraisers who informed me that though you may increase livable square footage with a garage conversion you actually run the risk of decreasing value of the property by eliminating the garage.
This is done quite a bit in our area. If you convert the garage to another room - make sure you get it permitted. If you sell later and its SF that was not permitted, you may have problems selling and with the county tax assessor and the city.
Also, if you convert the garage, you can add a metal or wood carport in front of the garage for parking if that's important to you.
Another suggestion, float in concrete so you don't step down into the garage. It will create the feel that this wasn't an add on.... unless, you decided to re-convert back to a garage later ... forget it.
Good luck...
That's a great point about adding a carport outside of the converted garage. It really seems like a cost effective way of increasing rental income. I also agree about the garage needing to be level with the rest of the house.
Could you be more specific with what you mean by "floating in concreate"? Is that just adding concreate to make up the difference?
dcg123- It'd be nice to have the conversion increase the appraised value, but I'm mainly trying to buying and holding for cashflow, so as long as tenants are willing to pay more for the room I'm happy.
General Contractor · Scottsdale, AZ · Member since 2008 · 100 posts · 7 votes
20y
Hi - What I meant was to add new concrete in the garage up to the level of the house so that both floors are at the same level. By doing this the addition doesn't seem like an afterthought but part of the house.
But, like I said, if you ever think you might convert the room back to a garage, don't do it because you want the garage floor a step down in case of water.
I had an appraisal done last year and asked the appraiser a few questions about increasing value. A carport was only worth $5 per square foot, and enclosed garage was $20 per foot, but finished living space was $65 (in that neighborhood). You do the math.
Check the neighborhood. Have many of the ports or garages been converted? Yes, then do the math. No, then you may not want to do it either.
I had an appraisal done last year and asked the appraiser a few questions about increasing value. A carport was only worth $5 per square foot, and enclosed garage was $20 per foot, but finished living space was $65 (in that neighborhood). You do the math.
Check the neighborhood. Have many of the ports or garages been converted? Yes, then do the math. No, then you may not want to do it either.
Thanks for the response,
That's a great point about the other ones in the neighborhood. In the situation that made me think of it, it looked like maybe 1/4 or 1/5 of them were converted (that seemed like a lot) and about half of the converted ones had added an extra carport either to the side or in front of the converted garage/carport
It's good to see an example of it increasing the appraised value.