To qualify as a true bedroom it has to be at least 100 sq feet and have a closet. Did they wire new electrical outlets? What about a ceiling light/fan fixture?
It was likely built without permits. Thats a big problem. That needs to be addressed. Did they build a closet? I guess for now you are ok but going forward you could have problems especially if you sell or if the city wants to do an inspection and discovers an illegal bedroom.
They did what I would've done when I bought and rehabbed it!!! Congrats, rent just went up on next tenant!
Hi @Michael are you going to raise the rent for the current tenant (the one's that built the wall) when their lease comes up for renewal?
Does your locale require permits for this type of work? Are there inspections? Those could be two big problems. If neither of those apply, did the tenant move someone in illegally (i.e., who was the 4th person)? How long has the tenant been there? Good payer? Is the house worth more money, or do you now have (2) 7 foot bedrooms?