2 Bed vs 3 Bed for an MTR?

Question

I have a 3 bedroom, 1 bathroom single family and I'm considering renting it as a 2 bedroom + office or 3 bedroom. I feel that a 3 bedroom MTR is rarer so I'd have a competitive edge, but I'd also like the option to attract corporate or WFH in addition to traveling nurses. Any thoughts? thanks!

Jamie Banks · Answer

With your property having one bathroom I think it’s best to set it up as a 2 bedroom with an office. It’s harder to rent out a 3 bedroom with only 1 bathroom in most markets. Having a dedicated workspace has a lot of value, you could even set up two work spaces in the 3rd bedroom to appeal to groups of digital nomads. But I would take a look at Furnished Finder to see what comparable properties look like in your market to determine if 2 bedrooms are over supplied.

Jay Thomas · Answer

Considering the current market trends and the various target tenants you mentioned, it's important to weigh the pros and cons of both options before making a decision. Well I'll suggest Assess demand, research tenant preferences, analyze rental rates and evaluate flexibility.

Konstantin Ginzburg · Answer

I would try to keep it as a 3 bedroom and gauge the market interest for the 3 bedrooms. From personal experience, traveling nurses and other professionals travel either alone or in teams of 2 so a 2 bedroom house may have a larger pool or tenants to select from and would make it easier to rent out as a result. Having the added office space might make your unit more appealing as well. As others have said, having a single bathroom will also make it harder since 3 people sharing a bathroom is not ideal. With all that being said though; you will likely be able to receive higher revenue by leaving it as a 3 bedroom so you are able to house one additional person who can contribute to rent. This will allow you to charge a higher total rent if you are able to find tenants who are interested in your property. Although an office space is a nice amenity to have, it is not likely to add enough appeal to a property to offset an additional occupant.

Alexandra Jimenez · Answer

UPDATE: Thank you everyone for your feedback! I've decided to make it a 2/1 + dedicated office (with sofa bed chair).I'll advertise as a 2 bedroom accommodating up to 4 adults, but with a sofa bed chair (instead of a day bed) in the third bedroom. There will technically be an additional (low) bed should it be needed for a small child if there's a family accommodating 5 total. I also like the third room as an office because a pack n play can fit in there overnight when the office may not be in use and the sofa bed chair will take up less room that a daybed. (I travel long term with a baby so I'm also visualizing the above based on my needs traveling and working remotely with a baby.)So far I've been able to successfully target families with my STRs so we'll see how the strategy plays out with an MTR. Wish me luck!This thread has been a very clarifying experience and really helped me adequately visualize my target market and listing so I appreciate everyone's feedback! Thanks again!

Bonnie Low · Answer

Your single bathroom is going to be your achilles heel. It's hard to rent-by-room anyway, and even harder when you have 3 individuals sharing 2 bathrooms, let alone 1 bathroom. I think you're on the right track listing it as a 2/1 plus office. You can always put a daybed in the office so there's one extra sleeping space, but otherwise have it set up as a dedicated office. If you happen to be in a military town, 3/1s for families coming and going to the area can work out. It really just depends on what people are traveling to your area for.

Nick Gober-Keller · Answer

Hi there,

It sounds like you're in a great position with your property and are asking all the right questions - that's a fantastic start!

Deciding between offering a 2 bedroom with an office or a 3 bedroom depends heavily on the demand in your area. Is your property in a location that attracts WFH professionals for leisure as well as work? Cities with tourist attractions like Miami, FL, or Charleston, SC, might justify keeping an office space. However, if your market doesn't cater to a large influx of tourists or people seeking a work-cation, you might be better off converting the office into a third bedroom.

Considering the needs of travel nurses is another crucial factor. If your area has a high demand for travel nurses, offering a third bedroom could be a competitive advantage. Travel nurses often aim to save as much as possible while on assignment, so splitting the rent three ways could make your property highly attractive. Plus, having roommates can offer a sense of community, which is often appreciated by young professionals in a new city.

In terms of attracting corporate travelers, they usually have designated workspaces during their stay. So, an office space might not be as necessary as one would assume.

It seems like converting the office into a third bedroom could potentially attract a broader range of renters and offer more versatility. But remember, real estate success is often about knowing your specific market and catering to its needs.

You're doing a great job asking these questions and seeking ways to optimize your property. Continue being proactive and curious, and I'm sure you'll make the best decision for your situation. Good luck!

2 Bed vs 3 Bed for an MTR?

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