Check with the building department.

Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)225-9894
gregory.garver@gmail.com
http://www.gregorygarver.com

You definitely need to check with the city’s planning department about the current code requirements. Enclosing a bedroom in a loft can be tricky. Buildings have floor limits that need to meet specified load requirements, and while a mezzanine may not count as a floor, enclosing the mezzanine could create another floor. There are also code restrictions on ceiling height (minimum 7’6’’) and you are required to have an operable window that opens to the outside for egress (minimum 24” width and 20” height opening, maximum 40” off floor – so a skylight won’t qualify). Historic buildings could also have additional restrictions. There is currently no closet requirement, but most appraisers won’t consider it a bedroom unless it has a closet. To find out the requirements for your specific situation, you need to call the building department at 415.558.6570.

There are many reasons you should go through the city’s formal permitting process before starting any remodeling:
- your licensed contractor can have the work done correctly to code (compliance is mainly for your safety);
- work that is done without a permit or not done to code could have negative consequences later on (you may be forced to make changes or remove it completely);
- if you go to sell and the work was not permitted, the appraiser may undervalue the property, not recognizing the additional bedroom, which could lower the amount your buyer can borrow

If you can’t completely enclose a room in the space, you might want to consider adding a room partition. I have seen some lofts with wonderful solid or translucent walls that can be repositioned to create enclosed spaces.

The MLS has nothing to do with the city’s permit or taxation process. Your agent will be able to come up with an accurate description of your unit for the MLS. All sellers are required to provide a 3R report that contains the building permit history and current occupancy. If you do work without a permit, your buyers would probably notice the discrepancy on the 3R report.

A licensed contractor can advise you on the process and pull your construction permit. The permit is what triggers the tax reassessment. An increase in your taxes is not automatic and depends on the type of work done. The tax assessor is looking at the increased square footage of the living space. I called the assessor and confirmed that changing the use from a den to a bedroom will “usually not trigger a reassessment.” However, whenever you expand the living space by adding square footage to the home, you can expect it to result in a reassessment. You can call the Assessor at 415.554.5596.

Good luck!

Man if you make decisions based on advice from this forum you could be wrong and not fulfilling your fiduciary duty to your clients.
If I wanted to find that out I'd go to the building department for the current definition and ask about converting a loft into a one bedroom. Actually you should instruct your client to do this type of research. Your liability goes up with every thing you find out and every answer you provide.
A good broker would tell you to remember that you are only a real estate agent, not a general contractor, architect, engineer or development consultant.
If you do wear those hats, like if you are an architect and a broker you would be carefull which license you are acting under and be clear to seperate the services.