I have a laundry room with a gas water heater in the closet. I was thinking about taking out the washer and dryer and renting the laundry room as a bedroom because there is a bathroom next to the laundry room. The water heater is vented to the outside and it is in a closet, would it be OK to use the room as a bedroom? I am in California.
As stated, the room, itself, would have to meet codes for a bedroom (size, egress, etc.)
As for the water heater, it needs combustion air. If the room is smallish and making it a bedroom means it's going to be closed off, then you likely will need to convert the gas heater to either electric or to direct vent. The latter adds a blower that pulls in combustion air from outside. The con to that is that it may be noisy if in a closet.