Laundry room, or third bedroom?

Question

I have a 3 bed 1 bath 1200 sq' SFH with full basement.

Basement is okay as basements go, but isn't pretty or inviting...Washer and dryer are in the basement.

Home is on a septic system.

I'm considering converting the smallest bedroom to a laundry room/folding room/extra clothing storage. W/D would be relocated here.

My reasoning is that while three bedrooms may be more popular, more occupants/strain the septic system, and not having to descend into a basement to do laundry may attract better tenants who really don't need the third bedroom.

I realize three bedrooms typically bring more rent, but with a 3 bed 1 bath having the laundry in the basement, I'm not seeing it attracting the best tenants.

I'm at the top of the rent range for this home/neighborhood ($795 central Illinois) and am faced with trying to attract better long term tenants, or continuing to rent to short term people who are using it as a stepping stone.

I want to make it a better value for potential tenants so that rent increases are justified. Cash flow is non existent currently, and I need to fix that!

Opinions?

Thank you,

Rob

Penny Clark · Answer

@Robert Hesselmann, is there any way you could add at least a half bath to the proposed laundry area? A second bathroom (even if it's just a half bath) would add value to the property for both the tenant and future investors if you should sell.

Max T. · Answer

Install a "dumb waiter" pulley system to help you tenants get their laundry back and forth without having to carry it on the steps.

Kevin Cenna · Answer

If the 3rd bedroom isn't already plumbed for water, sewer & electric, why would you convert it?  The cost to put all that in new - even if you can spread the cost over 12 months rather than cash out of pocket - has to be factored in.  I mean, even if the cost is $100/mo (for a nice round number), and you want to add $100/mo to your P&L, you need to figure if the market can support an extra $200/mo when you are already at the top of the market in terms of rent, just for a main floor laundry.

I'm of the same opinion as Dale.  It's likely to be more cost effective to improve the condition of the existing basement laundry.  Unless your strategy is to target older couples that want to avoid stairs, does it make sense to change your property simply to cater to that demographic?

Dale Iurillo · Answer

Hi Robert, I did not see what you current P.I.T.I is on this property ? You stated cash flow is non-existent, is that because it is currently vacant ? If that is the reason I would recommend spending the money to convert bedroom on cleaning up basement and make laundry more appealing. If you are too deep into mortgage payments (meaning you paid too much to begin with ) I would advertise house for sale with owner financing on short term 1-3 years and thoroughly screen potential buyers background, and find some one with a minimum of $10,000 non-refundable deposit. Get out from under deal if your breaking even when rented. Feel free to reach out to me for more details if you need to. Best Regards ! Dale

Jake Thomas · Answer

I would never give up a bedroom for a laundry room when you have less than 4 bedrooms. I would look into how you can make the basement more inviting. I would'n't worry about the strain on the septic system, if it is installed and working properly it likely still needs to be pumped every 3-5 years whether its 2 bedrooms vs 3. The systems are installed based on bedrooms in the first place so it should be able to handle 3 bedrooms fine. Just my opinion but 3 bedrooms usually rent for more than 2.

Melanie Thomas · Answer

Bedroom over laundry room all day long! Good luck and happy investing!

Matthew Irish-Jones · Answer

I don't think this is a great idea.  You are running gas lines, venting out the wall or window, and losing a bedroom. You are better off having a nice space in the basement for laundry than tearing your unit up and losing a bedroom.

Robert Hesselmann · Answer

Hi Penny,

Anything is possible!

The third bedroom in question is right next to the existing bathroom. It is possible, but would be strange having two bathrooms side by side...

This thread has given me some great ideas for our other rentals.

We have another similar sized home that had a small addition on the back. It had a half bath, and we carved out a laundry room in the addition and still had space for an eating area.

The layout of the small 3 bed 1 bath, now having an additional half bath, laundry no longer in the basement, and an eating area, has made it very popular.

First tenant stayed 7 years and only moved because his wife  needed a more accessible home (wheel chair) they actually moved into another of our homes. The new tenant looks like a long timer as well, having already put in a garden and is doing extensive landscaping. I love good tenants like this, and want to do what I can within reason (scope and budget) to attract them.

Rob

Malkia Ra · Answer

My thoughts, exactly.  Instead of bringing the laundry room to the first level, adding a half bath and upgrading the basement would be ideal.

Gerald Ramsey · Answer

OMG! I'm literally going through that decision right now, convert part of den to laundry closets or 3rd small bedroom. Duplex, upper vacant, Buffalo NY.$825. No mortgage. Demographic logistics are similar as you described. Current lines in basement but not popular. Also active new apartment construction happening in the near by neighborhood. Attempting to make it more competitive/desirable...I see majority reply is pro 3rd bedroom. I've already had the wall added for the laundry closet, but could add another wall and make the den a small 8.5x.9.5 kids room??

Laundry room, or third bedroom?

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