What Is a Bonus Room? A Real Estate Prize (and Property Tax Loophole) (2024)

Unless you grew up in a cave (no judgments!), odds are you know what most rooms in a house are called. For instance, you know full well what a bedroom is, and a bathroom is also self-explanatory (buthalf-bath or quarter-bath,not so much). Yet homesdo have a few rooms that could be head-scratchers, and one of those is what’s called a “bonus room.” So what is a bonus room?

While it might sound likesome game show featurewhere you pick the correctdoor to open to win an exciting prize, a bonus room is actually best defined by what it is not:It typically does not have a closet. It mightnot even have a door, windows, or all four walls. The ceiling mightbe lower than standard in places, so you have to watch your head.

In other words, a bonus room might lackthe comforts of a traditional room. It is typically found in attics, above garages, or in other forgotten spaces.

Nonetheless, bonus rooms have their benefits. First and foremost, it’s extra space, even if it doesn’t count as a bedroom because it lacks those roomlike features. Plus, it doesn’t count as a room on your property taxes, which arelower as a result. So, a bonus room can offer a “bonus” in square footage, without the financial costs.

What can you do with a bonus room?

While a bonus room might not work well for roommates or guests who craveclosets, privacy, and other comforts afforded by traditional rooms, there are plenty of other options for the space.

Depending on the size, shape, and location of a bonus room, it could be used as a crafts room, office, playroom, library, exercise room, teen/tween escape pod, or a combination of these.

Another term for this versatile space is a “flex room.” Add a TV, some shelves, and a sofa, and this narrow space with a sloped ceiling becomes a media room.

What Is a Bonus Room? A Real Estate Prize (and Property Tax Loophole) (1)
Bonus room turned into a media room /Photo by Beaman Building and Realty
With some custom built-ins, a similarly odd-shaped space becomes a reading nook that also works as a guest room and an office.

What Is a Bonus Room? A Real Estate Prize (and Property Tax Loophole) (2)
Reading nook, guest room, and office /Photo by Driggs Designs
The ceiling in this attic room istoo awkward for adults, but it works for a children’s bedroom.

What Is a Bonus Room? A Real Estate Prize (and Property Tax Loophole) (3)
Children’s bedroom /Photo by Alan Mascord Design Associates

Bonus room questions and concerns

Just how big a boona bonus room is hinges largely on what you do with it—and how usefulit seems to prospective buyers.Case in point:Virginia real estate agent Sharon Langwas the listing agent for a house with a bonus room abovethe garage that was being used asan office.

“There was no door at the top of the staircase. You just popped into the nicely finished open space,” she says. While the spacewas filled with natural light and had a vaulted ceiling, the feedback Lang got from prospective buyers was, “Why didn’t the bonus room have a door? If it had a door, it would feel more like a true room since it was on the upper level.” Lang believes it would have been easy to add that door, and that it would have made a difference.

So if youhave a bonus room or want one, consider making any roomlike renovations that wouldmake it more comfortable and appealing—to yourself and others.As Lang points out, a room above an unheated garage will be colder than other upper-level rooms.

“Considerations you’d want to plan for include an effective and efficient HVAC system, perhaps with added insulation, ventilation, and/or ductwork to ensure for a comfortable and useful room,” she says. “You’d also want to have windows for light as well as for egress purposes, with fire safety in mind.”

Prospective buyers of a home with a bonus room will want to check local tax laws to find out if they will be paying for an actual room or if this one will fly under the radar, legally speaking. Plus, if you plan to renovate it, you’ll want to know how adding a closet, wall, door, or window might affecthow it’s defined—and taxed.

In other words, making the most of your bonus room is a balancing act: The more roomlike features you add, the higher the odds it could be considered a true room, whichwould affectyour taxes. So be sure to weigh the pros and cons before you buy or renovate the home. Or, if you’re just looking for bonus-room ideas—playroom,guest room, man cave, she shed—Lang offersalookbookto get your gears turning.

What Is a Bonus Room? A Real Estate Prize (and Property Tax Loophole) (2024)

FAQs

What Is a Bonus Room? A Real Estate Prize (and Property Tax Loophole)? ›

Nonetheless, bonus rooms have their benefits. First and foremost, it's extra space, even if it doesn't count as a bedroom because it lacks those roomlike features. Plus, it doesn't count as a room on your property taxes, which are lower as a result.

Is a bonus room considered a habitable space? ›

Typically, bonus rooms do not meet the local requirements for a legal bedroom (often requiring a closet and a window) but are still great, useful spaces. Bonus rooms are popular because of the flexibility that they offer to homeowners.

What is the difference between a family room and a bonus room? ›

Sometimes, family rooms are found upstairs or in basem*nts, making them feel separate. This is likely why these spaces are often called “bonus” rooms. In new construction homes, a bonus room can be found in a variety of places, often upstairs or in the basem*nt.

Does a bonus room add value to a house? ›

How much value does a finished bonus room add? If the idea of additional living space wasn't incentive enough, a finished bonus room is also a worthwhile investment that can add between $10,000 and $30,000 to the value of your home.

What is an extra room in a house called? ›

What Is a Flex Room? Whether you call it a flex room, a bonus room, an extra room, or a spare room, this multi-purpose room is defined as an area in a home that can be used for a variety of functions.

What constitutes a bonus room? ›

A bonus room is a room in a house that is not a kitchen, bathroom, family room, hallway, or closet — but for one or more particular reasons, it doesn't qualify as a bedroom, either. This room might show up over a garage, for example, or represent attic or basem*nt space in some states.

What is the definition of bonus room? ›

A bonus room is a remodeled room or addition to the home that can be used for multiple purposes. It may/may not adhere to local code regulations for standard rooms in a home. A bonus room is not a must-have in a property, such as a bathroom, family room, hallway, kitchen, or closet space.

What is another name for a bonus room? ›

Flex spaces go by many names, whether you call it a loft, a family room, a bonus room, a study, or even a F.R.O.G.

What is the average size of a bonus room? ›

What is the average size of a bonus room? A bonus room is less than 70 square feet, the minimum floor area needed for a space to qualify as a bedroom.

Are bonus rooms expensive? ›

Average Cost of Adding a Bonus Room to Your House. Like any major home improvement, the costs of home extensions are significant. Based on the most recent data, the national average cost for building a home addition or extensions is about $42,000, with the range extending from $21,000-$65,000.

How much does it cost to finish out a bonus room? ›

The cost to finish an attic above a garage (also called a “bonus room”) varies significantly based on whether you need to install heating, ventilation, and insulation. Prices range from $4,600 to $24,000. If you instead plan on using the area for storage only, you could pay between $4,000 and $8,000.

How to use a bonus room? ›

Use these bonus room ideas to help inspire your dream home gym, craft room, TV nook, and more. Hobbies can also become a great theme, such as a dedicated sewing room, project room above a garage, music room, or private library for reading and storing books. No room is too small or too large to turn into a bonus room.

What is a small entrance room in a house called? ›

Residences: A foyer is an area at the front of the home, entered after passing through the front door. The foyer connects a home's entrance with the rest of the interior. ... A foyer in a residence is usually a small area behind a front door that separates a home's main rooms from the outside of the house.

What is a flex room in a house? ›

A flex room is essentially an area in your house that can be customized and used for a number of different functions. Flex rooms are designed to be flexible and can be entire rooms or an area in your home that can be utilized in different ways throughout your time and life there.

What is the small room at the top of a house called? ›

An attic (sometimes referred to as a loft) is a space found directly below the pitched roof of a house or other building. It may also be called a sky parlor or a garret.

What is considered a habitable room? ›

Habitable Room. A room in a building for living, sleeping, eating, or cooking, but excluding bathrooms, toilet rooms, closets, hallways, storage or utility spaces, and similar areas [Art. 100 Definitions].

Does a bonus room count as a bedroom? ›

You can use a bonus room as a bedroom if you want, but you can't list it as a bedroom when you sell the house. In fact, a bonus room typically has exactly zero useful features (like an office's built-ins, or a potential home theater's in-wall sound wiring) because it's meant to be a blank slate.

What are considered habitable spaces? ›

HABITABLE SPACE is space in a building for living, sleeping, eating or cooking. Bathrooms, toilets, hallways, storage areas, closets, or utility rooms and similar areas are not considered habitable spaces.

Which of the following rooms are classified as habitable rooms? ›

A habitable room is a space in a building for living, sleeping, eating or cooking. A space in a building for living, sleeping, eating or cooking is considered a habitable space. Bathrooms, toilet rooms, closets, halls, storage or utility spaces and similar areas are not considered habitable rooms.

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