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.

What makes a room 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.

Does a bonus room count as square footage? ›

In general, a bonus room will count toward square footage if it's part of the gross living area, which means it must meet these requirements: Be finished. Be above-grade. Be livable.

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.

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.

How much value does a bonus room add 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 a den vs bonus room? ›

In North America, the type of rooms described by the term den varies considerably by region. It is used to describe many different kinds of bonus rooms, including family rooms, libraries, home cinemas, spare bedrooms, studies or retreats.

Can a bonus room have a closet? ›

While it might sound like some game show feature where you pick the correct door 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 might not even have a door, windows, or all four walls.

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 definition of bonus room? ›

What counts as a 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 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 worth it? ›

Whether you finish the space or not, it's still a great selling-point for a house because it has potential. If you choose to finish it, it adds more value because the living space of your home increases. We discussed using the bonus room as a guest room above. It's easy to make the bonus room into a bedroom.

Can you put a bonus room over a carport? ›

Plan the Construction

Remodeling your carport into a bonus room takes more than design planning like where windows or doors will go. You'll have to consider if you'll need any heating or cooling for the room, and if any plumbing is necessary.

What does "unfinished bonus room" mean? ›

Home Plan #592-011D-0346. House plans with unfinished rooms, or as they are sometimes called, bonus rooms, are spaces called out on the blueprints of a house plan that have no designated function.

Can a bedroom be above a garage? ›

You'll need a building permit to add a room above your garage. Your local city or municipality requires you to comply with zoning laws and construction ordinances, which is why obtaining the correct permits is so important.

What is flex 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.

Why is it called a bonus room? ›

What is a “bonus room”? In essence, a bonus room is a room defined by its lack of purpose. Most of the rooms in your house have specific purposes: You sleep in your bedroom, bathe in your bathroom, cook in your kitchen, and so on. A bonus room has no specific purpose—it's just empty space.

What makes a room a double room? ›

Double rooms are for two people who will be sharing a bed. This bed may be made up or two single beds pushed together or a double bed (size may vary). Twin rooms are for two people staying together who will each have a separate bed – perfect for two friends, family members, or colleagues travelling for work.

Does adding a closet to a bonus room add value? ›

However, for maximum flexibility, I'd suggest putting in at least 1 egress-sized window, so the space, when finished out, could be used as a bedroom. Adding an additional bedroom to the home is a good way to add value for resale. For it to count as a bedroom it will also need a closet.

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