Are small bedrooms bad for rentals?

Question

I am looking at a property with small bedrooms. It is 3b2b and 1200 sqft. Master bedroom is 11x10. The other 2 are both 9.5x9. Wonder how important big bedrooms are to renters. I saw a popular floorplan for rentals in the neighborhood also has 1200 sqft. It has 3 bigger bedrooms, 1.5 bath, 1 living area and 1-car garage. The one I am looking at has 2 full bath, 2 living areas, 2-car garage, but the bedrooms are really small.

Thanks in advance for any advice.

Zhuo Ye · Answer

Thank you guys for your replies! So what’s your suggestion if I have to choose between the two options? One was built in the 80s, 1200 sqft, 3br1.5ba, bigger bedrooms, bigger living room, 1-car garage. The other is new construction, also 1200 sqft, 3br2ba, small bedrooms, 2 small living areas, 2-car garage. New construction is ~10% more expensive than the older one.

Pat L. · Answer

One of the biggest complaints we see from Millennials is trying to fit a King size bed in a bedroom along with a dresser etc etc. We probably had 8 of them pass up our flip for that reason & some of the older couples who were 'downsizing' baled on not being able to fit a 12 seater dining room in the open living area. The kids that did buy it have it filled to the walls with barely a pathway around their large furniture 70inch TV on a stand & the complete game center.

Jim Goebel · Answer

@Zhuo Ye

They definitely work against it, but I'd say it's kind of a 10-20% adjustment in terms of quanity demand and possibly willingness to pay, in our market.  With a lot else going for a property, you'll still find a large number of folks that will look past it.  Modern houses bedrooms are way bigger for what it's worth, typically.