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Updated over 4 years ago, 04/17/2020

User Stats

30
Posts
13
Votes
Sharon Ho
  • New to Real Estate
  • Iowa City, IA
13
Votes |
30
Posts

Tenants using inhabitable rooms as bedrooms

Sharon Ho
  • New to Real Estate
  • Iowa City, IA
Posted

There is a property I'm looking at that has (on paper) 4 bedrooms, 3 baths. There is a spacious 5th room in the finished attic that is not considered habitable because it's under the 7 ft. ceiling height. Looking up rental permit searches, I see past tenants using it as a 5th bedroom has been an issue twice on the previous owners' inspection reports. They've been warned that should it be an issue again, they will make the owners remove the door and frame to the area and create a cased opening. It bothers me that there is so much "wasted potential" in that finished attic space. I'll be house hacking the first year and can manage the property. Once I'm out, I can see future tenants using the room as a 5th bedroom despite lease conditions. Will this property cause me headaches later on? While fees would be paid by the tenants, I'm concerned that this is basis for a reduced term rental permit and impact my ability to renew permits. What would you do? 

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