Turning 1 BR into 2 BR: Cost vs. Return

Hello,

I own Two 1 BR apartments in new buildings in Brisbane.

Rental return (after management fees, body corporate etc) is about 3.3%
Rental is 410 AUD weekly.
I am looking for ways to improve the return.

Question:
Converting them into 2 BR would be easy (use space from the outdoor terrasse) and I believe not very expensive (adding 1-3 walls).
Would this increase my rental income?
It would be a rather small 2 BR apartment, but I suppose there are people who can’t afford a real 2 BDRM, perhaps a young couple with a child, who would be willing to pay a bit more for an extra usable bedroom at the sacrifice of outdoor space?

See Image for example: Renovation-question-1

Thank you

 

You may need Body Corporate approval which may not be forthcoming.

 

I'd say your chances are slim to nil.
It is not what was approved on the DA.
It may contravene the class 2 fire engineering/construction practices
The body Corp won't allow it
The unit may not meet the design codes for amount of outdoor area.

 

Thanks for the reply!

Yes I am aware that I would need approval, but there are sneaky ways to go about it:

On one of my units would require only 1 window to be installed to become an enclosed room, similar to this type of window: 04-a-folding-glass-window-is-an-entrance-to-the-balcony The developer, on the day of inspection, said that this kind of window might be doable.
Image: unit2

For the other unit, more complicated, I would call it something like "adding a sunroom", sort of an outdoorsy enclosure made of a metal frame and some glass, with a sliding door, akin to a "verandah".

 

Sneaky is rarely a good idea. Do you think other residents won’t notice?

You must get body corporate approval for any structural alteration.

End of story.

And don’t believe everything the developer tells you. If it was that easy, the developer would have done it in the first place, and sold the unit for a 2 bedroom price, not a 1 bedroom. Developers usually squeeze every last possible bit of profit out of a development.
Marg

 

your reno might cost you more money than making you more money, because if the body corporate find out, you will be forced to return everything to its "original".

 

I intend to get approval from Body Corporate first. I am not so worried about adding a folding window, that alone doesn't turn the outdoor area into a room.. it just makes it an outdoor terrasse with a window, not a major structural change.

How much it would affect rental income to uncertain, but this folding window can't be more than a few thousand dollars, not big money.

 

If you turn that outdoor terrace into a bedroom, the living/dining/kitchen space won't have a window anymore. This is not allowed by the building code, and would also make those rooms very unpleasant. Your rent might even have to go down as a consequence.

 

There is a glass door on the interior side of the terrasse as well, so there wouldn't be much reduction in sunlight coming in.

Not saying I want to turn it into a fully decorated bedroom, but it becomes a flexible space that the tenant can use as one if needed, even temporarily. Put a desk and seat and it becomes an office, put a Kid's Crib in it, and the parents can watch the kid from their own bedroom glass door. Put a sofa bed and your guest can sleep there. It is not meant to be a "real" bedroom, as the unit is too small to be used or presented as a 2 BR. Like I said, it is a flexible space that the tenant could use as one if needed. And officially, it remains just a terrasse.

 

If you slap in an en-suite you'd really be on the money.

 

Apologies, I am not a native English speaker; what does en-suite mean? There is a door from the bedroom onto the terrasse, and there is a door from the terrasse to the living room.

Cheers

 

You can’t make structural changes without permission.
That includes adding windows, folding or otherwise.
Marg

 

Thank you Marg4000. Yes I am aware of this, and intend to seek permission first. As I have seen other similar units with bi-folding windows, I think there is a change it will be allowed.

Cheers

 

That is called an enclosed veranda/balcony then. Some people love them. Some people hate them.

 

Hello, I intend to install a bi-fold window, which means it can be entirely opened to look the same as it does now. If a tenant likes to keep it open, he could do that.

 

Good description!

It's still called an enclosed veranda. Some people love them. Some people hate them. I don't know if it will increase your rent or not. Maybe there is a real estate agent here who will know.

 

Thank you Wiz. I will update you all on this thread if / once it is completed. I always look for rather low cost modifications with big effect on rental income.


Total reno plan:

• Hardwood floor. 3000-3500 AUD
  
• Improved LED lighting with spotlights and rails: tbd
  
• Bi-Fold window (potentially): tbd
  
• Fridge / Microwave install: 600-900 AUD
• Hotel style curtains in the bedroom (currently has ******** semi transparent office roll down blinds): tbd
• If walls are dirty, repaint or apply wall paper

..................
Total budget: around 6000 AUD

I estimate that I could get around 170-200 AUD more per month of rental, not a huge amount, but it adds up.

Cheers

 

My apologies. I meant an en-suite bathroom. That is a bathroom connected to the bedroom. So your unit will have two bathrooms.

This is highly desirable but would involve a fair bit of plumbing. I know, it's not practicable.

 

Even if the body corporate allow it I would highly suspect that the local Council would not. The Development Approval for the site governs how many square metres of habitable space is allowed, the number of bedrooms governs how many parking bays were needed, the distance to boundaries from windows governs what type of windows and fire regulations are required (mesh on windows, sprinkler systems on windows etc etc). Having a bedroom off a bedroom impacts evacuation in case of a fire etc etc.

I really really think this is a bad idea. Rearranging internal space to create another room is one thing, adding space to the outside is a whole extra layer of risk.

 

Agree. Very bad idea in my opinion. Might fly for a couple of years. I think, once either a tenant or PM or neighbor reports it for one reason or another would need to be removed at own cost plus a fine. Might turn into a very expensive experience. Look fo the apartment from outside will change, red flags for the council.

If it could be done, developer would have done it in the first place.