By using the Demolition Permit on a Door that connects to another room in the player's Slanty Shanty, the player is able to demolish this adjacent room. Demolishing a room returns all Items that were dropped on the ground within it as well as half of the Crafting resources of all Structures and Furniture that were built within it (as if they had been Hammered by the player). The Demolition Permit is consumed in the process. The door remains, but is now locked and can only be made usable again with another House Expansion Permit.
It is not possible to demolish the room that contains the entry and exit of the Slanty Shanty.