Tenants using inhabitable rooms as bedrooms

[Sharon Ho]

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? 

[Jonathan R McLaughlin]

I'm really surprised this would be on the radar as its SO commonly done. Yes you will have headaches. You can and should put in your lease that that space is not to be used as a bedroom, not to have bedroom furniture (a futon?) etc. but enforcing its another matter and you will be on the hook for the changes once they inspect. Very curious what was the trigger here. Not sure where you are, but if code enforcement is reasonable (and some are) you could go directly to the office and say "what should I do", talk about the lease language idea and try and get on the right side of them. And don't rent to people who need 5 bedrooms....