Laundry room, or third bedroom?

[Robert Hesselmann]

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