{"id":145113,"date":"2022-10-10T19:00:00","date_gmt":"2022-10-11T01:00:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=145113"},"modified":"2023-08-08T15:41:35","modified_gmt":"2023-08-08T21:41:35","slug":"house-hacking-renting-by-the-room","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/house-hacking-renting-by-the-room","title":{"rendered":"How to House Hack By Renting-By-The-Room"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC3457705308&#038;light=false\" width=\"100%\"><\/iframe>  \n\n\n\n\n<p class=\"wp-block-paragraph\"><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/real-estate-investing\/house-hacking-strategy\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">House hacking<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;is a great way to build wealth when you&#8217;re just starting out in real estate, but it can sometimes be complicated. How do you know what house is suitable for a house hack? How do you find tenants?<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This guide will take a deep dive into the most straightforward way to house hack, including answers to those questions and more.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Start With Your \u201cWhy\u201d<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">House hacking is where you leverage spaces\/rooms in a home to generate additional income that offsets the homeowner\u2019s living expenses. Renting rooms in a home can drastically reduce the costs of what a homeowner would be paying for mortgage and utilities and can even mitigate the entirety of a homeowner&#8217;s living expenses. That\u2019s why this real estate strategy is so popular among aspiring real estate investors and those searching for&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/3-steps-financial-freedom\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">financial freedom<\/span><\/a><span data-preserver-spaces=\"true\">. House hackers can tremendously increase their income overnight simply by moving into a home and making living arrangements available to others.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">When it comes to house hacking, starting with your \u201cwhy\u201d in mind is paramount. House hacking can have huge financial benefits, but it comes with sacrifices and challenges, such as giving up your privacy, learning the ropes of being a landlord, and dealing with potential roommate conflicts. Knowing why you would willingly enter those situations is key to helping you find the right home and to keep you motivated.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Examples of your \u201cwhy\u201d could be:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Financial freedom in 10 years<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">To own five properties in the next five years<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">To have virtually no living expenses&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">To be able to give generously to a cause you love<\/span><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">My wife and I wanted to move towards financial freedom, and I wanted the ability to start my own business without sinking us financially. We came up with a goal to completely offset our mortgage through house hacking. Upon taking the leap and achieving our goal, that gave us the margin in our budget to start my business and continue taking other steps towards financial freedom.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">With a \u201cwhy,\u201d you\u2019re much more likely to pull this off.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Finding The Right Home<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">To house hack well, you need to find a home you can afford. You also need one that will allow you to rent out rooms at the rates required to meet the financial goals you\u2019ve set. Sounds simple enough, right? There are actually several steps involved. Let&#8217;s break them down.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Create your goals<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Any and every property could be a potential house hack. Refining your goals will allow you to narrow down the multitude of homes available in your market to only the homes that make sense for you. It\u2019s helpful for this goal to actually have a dollar amount attached to it.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Here are examples of house hacking goals:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">I want my rental income to equal my mortgage payment&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">I want my out-of-pocket living expenses after rental income to be less than what I currently pay in rent<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">I want to pay less than $1000 per month in out-of-pocket living expenses&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Understand what you can afford<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Another key aspect of finding the right house hack is understanding how much you can afford. Getting connected to a great lender or mortgage broker early on in the process is very important. You can find some great mortgage lenders&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/loans\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">here<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This will allow you to understand what purchase price you can go up to, know how much cash you will have to bring to the closing table, and give you an estimate of your monthly payment.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">A good lender will be responsive, able to answer your questions, pull numbers, and generate estimates for you quickly. Many people feel obligated to work with the first lender they talk to, but you have the freedom to work with whoever is best for you.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">To find the right financing, it\u2019s good practice to talk with at least three different lenders. Make introductions, see what their rates and services are, and make a decision from there. Other real estate investors and your real estate agent should be able to point you toward good lenders as well. If you find yourself working with a lender who becomes unresponsive, cannot get numbers, and doesn\u2019t understand your goals, Ariana Grande your way out of that relationship, \u201cthank you, next.\u201d&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Have a lender in place so you can know how much you can afford, what you will have to bring to closing, and how much your monthly mortgage payments will be.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Get a house hacking\/investor-friendly agent<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Finding a great real estate agent early in the process will also be key to helping you find the right home. A good agent will be able to curate a home search based on your goals, specifically for house hacking.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">An agent will be able to provide an overview of how each home will perform when rooms are rented out and give you an estimate of your bottom line for monthly income and expenses.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">If you&#8217;re looking for a great investor-friendly agent that can help you buy a house hack or any other investment property, check out&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/agent\/match\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Agent Finder<\/span><\/a><span data-preserver-spaces=\"true\">!<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">A good investor-friendly agent doesn\u2019t need direct experience with house hacking, but it certainly helps. Providing insight on finding the right property, creating leases, marketing your property, and understanding if the property is an excellent long-term investment are all invaluable.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Many agents do not understand the concept of house hacking. Here are some signs that you may not have a house-hacking-friendly agent:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">They ask if you want to see homes that don\u2019t meet your goals<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">They cannot tell you how a home will perform as a house hack<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">They do not have access to or won\u2019t find house hack resources for you, such as pro formas, rent comps, or leases<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Unresponsive or not willing to see houses you\u2019re interested in (that\u2019s just a bad agent in general)<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Know your projected rent<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">To know if a property will perform as a good rent-by-the-room house hack, you must have a good idea of what the rooms will rent for when purchasing the home. As we mentioned above, your agent should be able to help you with this, but you will be the one paying the mortgage and collecting rent, so it\u2019s good practice to have a working knowledge of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/real-estate-market-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">rent projections<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;yourself.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Once you find a potential property, check popular rooms-for-rent platforms such as HotPads, Roomster, and Craigslist. Use Facebook to see what people are posting in rental and roommate groups.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">As much as you can, you want to compare properties that are as close in proximity as possible and similar in quality, amenities, and size. Finding 3-5 comparable properties close to yours and taking the average room rental rates would be a great way to project rent.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Another way to get comps would be to look at what similar properties rent for a whole house. You can divide the total rent by the number of bedrooms to see what renters would be willing to pay per room. Using this method will also allow you to incorporate rental projection software such as&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/insights\/property-searches\/new\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">BiggerPockets\u2019 Rent Estimator<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">After collecting some rent projections, you can check them with your agent. Getting other eyes on rent comps can be helpful to hone in your projection skills and ensure you are not missing the mark. Getting the opinion of a seasoned investor or a property manager would also be beneficial.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Create home searches&nbsp;<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">You are not the only one looking for these kinds of homes. Properties with multiple bedrooms will attract other house hackers and families looking for homes that also suit their needs. Creating automated home searches in your target areas with criteria such as \u201cfour bedrooms, two bathrooms\u201d and getting consistent lists of homes is a great way to keep your eye on the market.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">You\u2019ll want to coordinate this with your agent, as they have the most up-to-date market information.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Buying The Home<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">If you are new to this, you may be exploring this strategy because you don\u2019t have as much capital or income as you would like, and that\u2019s okay! House hacking is an excellent place to start! To supercharge the house hacking strategy, get in as cheaply as possible. Here are a couple of ideas to utilize.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Down payment assistance<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">There are many national, state, and local programs for getting down payment assistance and grants to help people buy homes. Some are specific to first-time homeowners\u2014some are based on your area&#8217;s demographics or your income.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">I utilized a downpayment assistance program to buy my first home. They supplied a second loan that covered 5% of my down payment, and I had minimal remaining closing costs to get into the house. I\u2019ve helped others utilize grant programs that pay up to $17,500 of the down payment and closing costs, all of which never have to be repaid. Some programs offer a 0% down payment as well.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Overall, explore your options before spending more money than you need to.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Negotiate<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">With the market cooling with rising rates, buyers have more opportunities to negotiate with sellers. You may find a property in an area you like with some cosmetic or maintenance needs. You can get under contract and negotiate repairs or money towards your closing costs to offset the costs of those items. When I was searching for my second home, I targeted homes that had sat on the market a little longer than usual and then asked the sellers to pay my closing costs in my initial offer. I eventually struck a deal and saved thousands at closing.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">If saving cash is a priority for you, let your agent know, and they should be able to help you create negotiation strategies to help get you into a home for the least money down.&nbsp;<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_9b2d8ba073d4a00194220fb7c3336988\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_5929ea68d56d5c661c54586a6e55a363\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color wp-block-paragraph\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_5abd76e77a9a846c5ac33b17422d7664 class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/agent\/match\"\n        x-on:click=\"window.analytics.track('Blog Block | B2C Marketplace Agent Finder', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/house-hacking-renting-by-the-room',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color wp-block-paragraph\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a\n    href=\"https:\/\/www.biggerpockets.com\/signup\"\n        x-on:click=\"window.analytics.track('Blog Block | Acquisition | Free Membership Signup', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/house-hacking-renting-by-the-room',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Buy turnkey<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Many buyers are immediately attracted to the cheapest homes in their target area. Upon viewing the home, they see that there is a lot of maintenance and cosmetic work that needs to be done. Buyers not looking to spend a ton of money don\u2019t always realize how quickly home renovations can add up. The purchase price may be lower, but you must know if you have the funds to renovate the home to your standards.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">If you are looking to house hack, a great option is to look for&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-investing-strategies\/turnkey-real-estate-investing\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">turnkey properties<\/span><\/a><span data-preserver-spaces=\"true\">. Turnkey properties need little to no maintenance or cosmetic work. You simply move in, rent out the rooms, and start making money. Obviously, this saves time and is less stressful, but this method can actually save you money because it takes the least amount of set-up costs and allows you to start making rental income as soon as possible.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Marketing Your Rooms<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">You have made your goals, identified, and purchased a property. Now you need to find roommates!&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Below, I\u2019ll outline some methods to market your rooms and fill them as quickly as possible.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Your network<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Many people skip this route and go straight to listing platforms and roommate groups, but leveraging your network is a great way to find roommates.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Create a simple description of the property, available rooms, price, roommate responsibilities, and home pictures. From there, share this with everyone you know in your area and ask them to pass it along to people who may be interested.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">You can post the same description and photos on social media and ask your connections to share on their platforms as well. This is a great way to get potential roommates who are in your sphere of influence rather than just complete strangers.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Roommate network platforms and groups<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Over the past few years, there have been a host of new roommate networking websites and apps. In addition, many people network through social media groups to find roommates as well.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Network platforms such as Roomster, Roommates.com, and Roomies allow users to create a profile and display their bio, areas of interest, and available budget for a room or a shared lease. These sites will enable you to reach out to these potential roommates.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Many people also utilize social media sites and join roommate groups on Facebook. These are generally more regional or city-specific and allow someone to share a little about themself, their budget, and what area they are interested in.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Once you find potential fits, you can carry on conversations with platform messengers and exchange information. You also can search for roommates based on shared interests.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Listing your rooms<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">While the first two options above give you more control over who sees your property, you ultimately have to get the rooms filled to maximize your house hack, so listing your property is another great way to find roommates.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">HotPads, Facebook Marketplace, and Craigslist are popular room-for-rent listing platforms. A good description of your property and high-quality photos will take any listing from selling a home, an Airbnb, or, in this case, a room for rent, to the next level and get you in front of the most possible tenants.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Create An Application and Lease Agreement&nbsp;<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Now that you know how to market your property and identify roommates, your next step is to have them complete an application and sign a lease agreement. It\u2019s a common temptation for house hackers to operate in a much more informal manner as opposed to a regular rental property because you will live with these tenants. You may even be good friends with them.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">That\u2019s fine until you find yourself with late payments or a vacated room. Creating some sort of application process and lease agreement to protect yourself can save you trouble if things go south with your tenants.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Listing sites like HotPads and Roomies have built-in screening options, such as credit, background, and ID checks (these usually require a fee). BiggerPockets also has&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/get.biggerpockets.com\/tenant-screening\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">tenant screening tools<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Lease agreements are crucial to have in place as you house hack. You need protection from damage to your home, missed rent payments, someone moving out unexpectedly, or someone not following your house rules. Seeking the counsel of an attorney is recommended when you have questions about the efficacy of a lease agreement.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Another good practice is to go over the lease agreement in detail with applicants. Having this conversation will save you and your roommates both from potential misunderstandings.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Screen your roommates, have them sign the lease, collect deposits and the first month&#8217;s rent. Congrats, you\u2019re a house hacker!&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Conclusion&nbsp;<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Incorporating this house hacking strategy will help you achieve your goals and get you closer to financial freedom or whatever you determined to be your \u201cwhy.\u201d<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">House hacking works. That\u2019s why so many people love to talk about this strategy. I hope this guide serves you if you decide to take the leap.&nbsp;<\/span><\/p>\n\n\n\n<div id=\"hero-block_62ee867235a1c\" class=\"first:mt-0 hero-block py-4    has-background has-slate-300-background-color has-text-color has-slate-800-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-2\/3 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-slate-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Put Your House to Work<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color wp-block-paragraph\" style=\"font-size:16px\">Discover why so many successful investors use the house hacking strategy\u2014and learn from a frugality expert who has \u201chacked\u201d his way toward financial freedom. Serial house hacker Craig Curelop lays out the in-depth details to make your first (or next) house hack a huge success.<\/p>\n\n\n\n<div id=button-custom-event-block_641384b1eb1d8 class='button-custom-event'>\n      <a\n    href=\"https:\/\/store.biggerpockets.com\/products\/the-house-hacking-strategy?utm_source=blog&#038;utm_medium=marketing_block\"\n        x-on:click=\"window.analytics.track('Blog Block | Publishing: House Hacking Book', {\n      referrer: 'https:\/\/www.biggerpockets.com\/blog\/house-hacking-renting-by-the-room',\n    });\"\n    class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Get Yours Now<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/3 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/HH_cover_mockup_01-e1679001015982.png\" alt=\"\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>House hacking&nbsp;is a great way to build wealth when you&#8217;re just starting out in real estate, but it can sometimes be complicated. How do you know what house is suitable [&hellip;]<\/p>\n","protected":false},"author":613614,"featured_media":145114,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7356,7119],"tags":[],"class_list":["post-145113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-house-hacking","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/145113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613614"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=145113"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/145113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/145114"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=145113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=145113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=145113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}