Medium Term Rental - Room Configuration

Real Estate Agent · Denver · Member since 2020 · 15 posts · 8 votes

My wife and I are converting our current primary into a medium term rental and I need some input. It is a 3/1 house in west Denver, CO. The current plan is set it up for 2 bedrooms and 1 office. It seems like with remote workers we could get more traffic that way. However, when I'm looking at comps on airbnb and furnished finder, it seems like I could rent it out for much more if it had 3 actual bedrooms (I have a master I could put a desk set up in too). The potential issue with that is it seems like most couples and friends traveling together (which is our current tenant pool we were going after) wouldn't want 3 full beds... Thoughts? How would you configure the house? Thanks for any feedback!

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Tanner PileBusiness Member

Real Estate Broker · Colorado Springs, CO · Member since 2019 · 389 posts · 326 votes

Caleb, have you looked to see if you could put a pull out couch in the office room? This way you get the appeal of an office space while still accommodating for another sleeping space. If the rooms are small this may not work but could be a way to target the crowd you're looking for.

I would look to model yours off what the similar comps are at. If they have desks in a few rooms that may be a better strategy to go.

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Nathan Grabau
Realtor · Longmont, CO · Member since 2021 · 577 posts · 631 votes
3y
As a general rule of thumb, especially for MTR's, you want to try to have a king bed in one of the rooms as an option. Could you have the master with a queen bed and a desk and have one of the other bedrooms have a master?
When you look at the comps, do you see most of the 3 bedrooms with 1 or 2 bathrooms? The 3/1 to 2/1 difference might not be as big as a 3/2 compared to a 2/1.
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Tanner PileBusiness Member
Real Estate Broker · Colorado Springs, CO · Member since 2019 · 389 posts · 326 votes
3y
Caleb, have you looked to see if you could put a pull out couch in the office room? This way you get the appeal of an office space while still accommodating for another sleeping space. If the rooms are small this may not work but could be a way to target the crowd you're looking for.
I would look to model yours off what the similar comps are at. If they have desks in a few rooms that may be a better strategy to go.
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Allen DuanPro Member
Property Manager · Los Angeles, CA · Member since 2022 · 590 posts · 463 votes
3y
Another question to think about is how much demand is there for a 2 bedroom vs 3 bedroom MTR in your area. Let's say there's infinite demand for both, setting it up as a 3 bedroom that can sleep more people will always earn you more. But let's say there's plenty of demand for a 2 bedroom, but very little demand for a 3 bedroom. If you set up and price as a 3 bedroom, you may be out of the budget range for many people looking for a 2 bedroom, which may or may not net you less overall income.
What I would do is set it up as a 3 bedroom so you can take larger groups and get higher rent from them. I would also set up a desk wherever it makes sense since that is an attractive amenity. Lastly, if you're having trouble finding a tenant at the 3 bedroom MTR rate, you can lower your rate to compete with 2 bedroom MTRs since it sounds like you're ok with that level of income. This seems like the best of all worlds solution =)
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Bonnie LowPro Member
Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
3y
How do you envision people using your property? Are these digital nomads? If so, they want a workspace with privacy so they can take Zoom calls. If their only private space is also their bedroom they're going to get very burnt out being in the same space essentially 24/7. Experienced digital nomads know this and will be on the lookout. The other problem I see is the 1 bathroom situation. That's just not enough bathroom space for a bunch of people working from home. By trying to cram so many people in, you may actually be missing out on bookings. I'd go the 2/1 route with the 3rd bedroom as an office. Maybe put a daybed in it or a pull out sleeper so you have the extra space if your renters absolutely want to bring another person.
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