Considering a reno

[Elizabeth3327]

Hi all, 

We have a mother-in-law suite on the lower level of our house and have been at 100% occupancy since we listed in February. We are doing mid-term only due to local ordinances. It has a private entrance but connects to the house via a stairwell. We are considering putting in a wall and adding another exterior door so we can add living space for our family and completely separate the apartment from the house. That will reduce the apartment to 1 combined bed/living room + kitchen + full bath. We would also be adding a closet under the stairs and some additional soundproofing to the ceiling as we have a lot of young kids and hardwood floors above. Obviously, we would need to lower the rate. Any other cons I'm not considering? Thank you!

 

[Hugo990]

Hi @Elizabeth3327,

It sounds like a well-thought-out plan, especially with the soundproofing and separating the space for your family. A few things to consider before you move forward:

1. Rate Adjustment: As you mentioned, reducing the space will likely require lowering your rate. You might also want to factor in how much lower rates for 1-bedroom studios or efficiency apartments are in your area. Doing some competitor research will help you set the right rate post-renovation.

2. Appeal to Different Guests: The new layout might attract a different type of guest—like solo travelers or business professionals—so you could tailor your listing to that demographic with features like fast Wi-Fi or a cozy workspace.

3. Impact on Demand: Depending on the demand in your area, smaller spaces with less separation between living and sleeping areas might see lower occupancy. Look at what’s working for similar listings near you.

4. Permits & Local Ordinances: Make sure to check if the renovations you’re planning align with local ordinances and permit requirements, especially as you're doing mid-term rentals due to regulations.

It sounds like you’re taking all the right steps, especially with the soundproofing, which can make a huge difference for guests. Good luck with the reno!

[Elizabeth3327]

@Hugo990 Thank you! This is very helpful! 

[Frances3408]

@Elizabeth3327. Hi Elizabeth, I have a studio listing. When I did my renos I considered closing off the bedroom but didnt. Its been a real plus because both heat and cool circulate better. Trying to fit more people in, just to get the occupancy up may not be the best strategy either. Noise insulation is essential in your case.

As you are hosting mid term I'd consider investing in a combo washer/dryer, even if you need to rejig a little (you just dont want unnecessary guest interaction when its your family home). Anywhere they can hang their washing? You mention storage under stairs- will that be for your family? What storage do you propose to offer guests if losing the entire bedroom? Where is new entry and who gets the porch area in front of the current bedroom- or is that being closed off as well? Private, exclusive outdoor areas are in high demand.

Hope this helps.

[Elizabeth3327]

Thank you for the thoughtful response! Our max occupancy is currently 2 and that won't change due to our homeowner's insurance. We also only have space for one guest vehicle for off-street parking, so that is another limiting facto. We will likely add some additional noise precautions whether or not we close off the bedroom. Agreed that that is important! There is currently a closet on the bedroom side. We would close that off and add a closet on the guest side. We don't offer a washer/dryer now (although I will wash linens and towels upon request as our guests are there for 30-90 days), but we do have hookups in the garage, which guests have access to. While it would be nice for guests to have, utilities are very high in our area, and we haven't had any trouble filling the apartment. I'm not sure it would be worth the cost of units + utilities. The porch will remain private and exclusive to guests. Our porch is above. It is a neat and pretty sizeable space. Definitely a selling point!