Which fetches a higher rent for the same square footage...

Question

If I have a 450sqft studio that I am already doing major rehab on,  should I just keep it a studio or add a wall to make it a one bedroom.  Having a wall will make it less open, but would a one bedroom possibly justify more rent.  The bedroom would be about 8 or 9’ x 10’.

Account Closed · Answer

Account Closed, I would recommend looking on rentometer, Craigslist, etc. to get a sense if there are 1 bedrooms in that size, and if so, what they rent for compared to a studio. My first thought would be that it would be worth converting to a 1 bedroom, but that would depend on the cost to get the wall in there compared to the increased rents. Depending on how long the breakeven would take, you might also consider if you had other places you could use that money, knowing you could always come back and convert to a 1BR later.

Whitney Hutten · Answer

Account Closed I agree with Chad.  You need to research what the market will bear.  You many only need to insert a partition and not get into the cost of building an actual wall.  You may also find that you are capped at rent for your area and that your equity is underperforming and you should disposition it for a better rental.

Another thought is to convert it into a short-term rental if the market allows as well. You will have another set of risks (town ordinances, shutdowns, etc).