Converting attached garage into a studio unit

[Sai Santosh]

Seeking advice from those experienced in property conversion! I have a 4-bed, 2-bath Single Family Home with an attached garage in a class A neighborhood. My plan is to convert the garage into a separate studio unit (with proper permits) and rent both units independently.

I'm reaching out to individuals who have undertaken similar projects for insights and potential pitfalls to be aware of. One concern I have is the possible decrease in rental value for the main house and the risk of losing quality tenants. Personally, I might hesitate to rent a house with another tenant on the property – is this a common sentiment?

Before investing any funds into the conversion project, I'd like to understand the market dynamics. Your feedback and experiences would be greatly appreciated!