adding a kitchenette to room for granny living space

[Brian Stark]

We have a powder room adjacent to a guest room that has a separate entrance to our home.  The guest room also has an attached full shower/bath.  We recently had a slab leak that affected the powder room and we are considering converting it to a kitchenette for the guest room and renting the room out as a studio apartment, or using it for one of our parents as they grow older.

We bought the house intending to rent out the room in question (or use it form one of our parents).  Assuming we can work out the legalities and any insurance issues I am trying to figure out the financial implications of a kitchenette.

I have done some comparisons of rooms for rent in our area and I believe we could conservatively rent the room for $1500 per month as is, I even turned down a friend for that amount because we weren't ready to rent yet.  Does anyone have any opinions as to how much converting the powder room to a kitchenette will affect the amount we can charge for the room?

I  am not asking about the dynamics of living with a renter/in-law or the cost of the conversion, I just want to know if the investment is likely to have a monthly return.

Thanks,

Brian