How many bedrooms are too many?

Question

At what point is there no more benefit to adding additional bedrooms? For example would there be any benefit converting an additional room to an additional bedroom if it already has 4 bedrooms?

Lynnette E. · Answer

I have 3 rental houses with 4 or 5 bedrooms.  Each of them have two of the bedrooms that are extra large, master type bedrooms.  That may impact who applies for my rentals.

I have found that in general I have 2 types of families that apply to rent these houses.

Type 1:  Lessees with 5 to 8 kids, often with either a single mom or with 2 adults and his/hers and their kids.

Type 2:  Lessees with 1 or 2 kids (sometimes adult kids) and who also have one or two of their parents living in the household as well.

The main concern I have is how the kids will impact the house.  One family with a single mom with 6 kids destroyed the house just during the viewing.  eg. fireplace insert removed from the fireplace, ceramic log broken.  It was not a good sword, apparently.  Pee all around the toilet on the hardwood floor.  Sliding down the 120 year old original banister in the house.  I was glad she brought the critters to the showing and that they came in when we were upstairs instead of staying in the car as asked by the mother!  And even more grateful that there were more qualified renters there that day.

I get $1000 to $1200 for rent on these houses and 3 bedrooms go for $700 to $850 where I rent.

Theresa Harris · Answer

I would think 4 bedrooms is the max.  If you have more than that, can you split the house into two rental units?

Kenneth Garrett · Answer

@Travis Headley

I definitely think the sweet spot is 3 bedrooms.  The majority of the population that is looking to rent a single family home will be looking for 3 bedrooms.  The number of renters looking for four bedrooms is very small compared to 3 bedrooms.  I do not think there is much value going above 4 bedrooms unless your looking at STR/Vacation Rentals then that’s an entirely different conversation.

Patti Robertson · Answer

When you start getting over 4 bedrooms the thing you have to think about is wear and tear.  In an expensive neighborhood you may have a low occupancy even if you have alot of bedrooms.  In a lower end neighborhood, you will end up with as many as two people per bedroom. Normal wear and tear increases with every occupant.  Personally I prefer to max out at 4 bedrooms.

Travis Headley · Answer

thanks for the replies. I believe in my area the amount of rent that could be generated most likely would not justify making more. 3 bedrooms would be the sweet spot.

Whitney Hutten · Answer

@Travis Headley I think 4 bds is plenty for most.  It really depends on what type of tenant you want to attract.  I do agree that if space can be converted to a school area / office / game room... that would be valuable right now.

Nathan Fisher · Answer

I find I really struggle with finding tenants for 4 bedrooms, especially with Duplexes.

The price points of a 4 bedroom are in line with simply buying a house.

Section 8 is a different story however.

Julio Garcia · Answer

If you can dress it up as a office that's good! but you have to weigh out the cost vs benefit