Queen Anne Duplex with Option to Convert Attic Space

[Susie C.]

I have purchased a Queen Anne home that is currently set up as a duplex (with separate meters). It is zoned as a multi-family unit.  There is usable attic space that can be converted to additional space. Some questions: 

1.  If I am zoned as a multi-unit right now can I make the attic a 3rd unit that can be rented out and build out a stair case that can be accessed? For doing something like this would I need an actual engineer/architecture? I was going to draw up a plan with my contractor myself. 

2.  Do you think it would make more sense to create a third unit with full 1b1b or am I better off using it as just an extra bedroom/storage space? Cost for creating a 1b1b unit would be ~$15,000-20k excluding materials (special price on top of the current work that we're doing since we're remodeling two full units and everything has been gutted out and all plumbing and wiring is easily accessible and exposed).  From my research it seems for a 1b1b you can get $1200-1400 and I anticipate rental rates to further increase as more and more people move into the city. To me it seems logical to spend the money and get it back paid in full through rental within a year or two.

3.  Does anyone know if something like this needs to be permitted by the city? I read on King County (Seattle, Washington)'s site and it says permits are needed for almost everything from basic things such as changing windows to redoing floors, updating kitchen finishes, restroom remodels, etc. At what point do you actually get a permit or do you guys just all get permits for every little thing? 

Thanks in advance! 

[Adrian Chu]

Yes, it needs to be permitted.  And the city will make you retrofit the entire building to current codes since you are changing from 2 units to 3 units.  There is a good chance they will ask for structural updates and fire sprinklers.

It will cost you a lot more than $15-20k.  But you can look into it to see if it is worth doing.