Converting a single-family home into a single-room occupancy (SRO) model can seem straightforward, but it involves a complex process that requires careful planning and execution. At KIBA Group Construction, we specialize in SRO conversions and have perfected this model in Texas. Here’s an in-depth look at what’s involved in converting a home into multiple rooms for shared living.
Understanding the SRO Conversion
1. Deciding on the Theme
The theme of your conversion will determine the overall ambiance and functionality of the space. Whether you aim for a cozy, communal atmosphere or a more private, minimalist approach, your theme will guide design decisions and affect tenant satisfaction.
2. Construction Complexities
Room Conversion: We typically convert 3-4 bedroom homes into 8-12 rooms by utilizing existing spaces such as the living room, dining room, and garage. This maximizes the number of rentable units without major structural changes.
Retrofitting for Multifamily Use: The home must be retrofitted to function like a small multifamily complex. This includes installing larger water heaters, adding 2-3 refrigerators, and upgrading to higher amp panel boxes to support additional electrical loads from lights, computers, and appliances.
HVAC Systems: Upgrading to larger HVAC systems with a minimum SEER (Seasonal Energy Efficiency Ratio) of 20 ensures efficient climate control.
LED Lighting: Switching to LED lights reduces energy consumption and maintenance costs.
3. Financial Considerations
Utilities Management: Negotiating with power companies to offer free power after 5 PM helps save on energy costs during peak hours.
Shared Amenities: Providing dual laundry appliances minimizes wait times, and adding fresh towel and laundry services enhances tenant convenience.
Bathroom Design: Replacing tubs with showers in shared bathrooms helps minimize usage time and maintains better hygiene standards.
Common Areas: Canceling common areas can increase the number of rentable rooms, but ensuring remaining shared spaces are clean and functional is crucial. Maid services for common areas and optional room cleaning services can be an added revenue stream.
4. Management Strategies
Lease Agreements: Decide whether to use individual leases or manage through online platforms like Airbnb. Creating your own online platform can streamline operations, allowing tenants to check in/out, view rules, and pay rent online.
Tenant Engagement: A digital platform can also handle complaints and requests, improving tenant satisfaction and management efficiency.
Scaling the Model
Scaling the SRO conversion model to multiple homes in a portfolio adds layers of complexity. Consistent management practices, standardized renovation processes, and effective financial planning are critical for success.
At KIBA Group Construction, we have extensive experience in all aspects of SRO conversions. Our portfolio includes several successful SRO properties, and we offer expert services to help you navigate the intricacies of these conversions. Contact Jermaine Anugwom at jermaine@kibagroupconstruction.com for more information.
Have you considered converting your home to an SRO model? What challenges or questions do you have about the process? Share your thoughts in the comments below!
Comments