{"id":168943,"date":"2024-03-04T14:16:13","date_gmt":"2024-03-04T21:16:13","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=168943"},"modified":"2024-04-02T09:07:58","modified_gmt":"2024-04-02T15:07:58","slug":"renting-by-the-room","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/renting-by-the-room","title":{"rendered":"Quick Strategies: Earn More Money By Renting Your Property by the Room"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC5765140602\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">When it comes to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-wealth-generators\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">maximizing profit<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;on your investment property, you\u2019ve likely considered quite a few rental strategies. If long-term doesn\u2019t pencil out, you could always consider revenue from&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-invest-in-medium-term-rentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">medium-term<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;or&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/the-ultimate-guide-to-short-term-rental-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">short-term<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;tenants if your market supports it. But there is another successful, profitable rental strategy you should add to your arsenal: renting your property \u201cby the room.\u201d<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Also referred to as a boarding or rooming house strategy, renting by room is not a new concept. But these kinds of arrangements are not as common as they were at the turn of the 20th century. Renting by room fills an important market gap, though, creating opportunities for renters who may not be able to afford an entire apartment on their own in a time of extreme housing shortages. In aggregate, you also stand to make a ton more money than if you just housed a single tenant.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you think rent by room could work for you, here are some things to keep in mind.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Start-up Costs Are Minimal<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">In the rent-by-room model, since your tenants will be renting a private bedroom each and sharing common spaces like living rooms and kitchens, you\u2019ll want to make sure each bedroom has a lock on it for privacy and tenant security, and ideally, its own thermostat. Usually, in these scenarios, bedrooms also come furnished. If you have a bedroom with an en suite, you can charge a little more per month, but it\u2019s not a required feature since tenants can share bathrooms.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Where to List<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Airbnb currently allows you to list your room rental (and offers protection through Air Cover), but this platform will likely attract more short-term tenants. There are also newcomers to the rent-by-room market, like&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.padsplit.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">PadSplit<\/span><\/a><span data-preserver-spaces=\"true\">, that take care of all the management of a rent-by-room, including things like background and income checks as well as evictions.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How the Numbers Break Down<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Say you have a typical four-bedroom, three-bathroom single-family home. In this hypothetical situation, if you were to rent the full house to one tenant, you would gross $2,000 a month. Instead, if you rent the same home by room to four different people, you could make $1,000 a month from each tenant, increasing your gross revenue to $4,000. PadSplit estimates that owners can make up to 2.5x more renting by the room than they make with a single tenant.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The average length of stay is shorter with room-by-room rentals, averaging eight months versus a full year. But that\u2019s still a lot less turnover\/management than with a typical STR model. Instead of one&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-to-include-in-a-lease-agreement\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">lease<\/span><\/a><span data-preserver-spaces=\"true\">, you\u2019ll need as many leases as you have bedrooms and tenants, so there is more management if you choose to self-manage, and of course, roommate issues are no fun to referee. In some states, you may also need a special license from the state to run a boarding house.&nbsp;<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_1553f98a29b23bdbfc7f7a055b37aa6e\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_e10de389c2ac8e01d0e9a84e7957504b\" 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\" 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\" 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_4a9827c7255c50d43bee9db8c3f6829d class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/renting-by-the-room&#039;,\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\" 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 href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/renting-by-the-room&#039;,\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","protected":false},"excerpt":{"rendered":"<p>Renting by the room is still a sound strategy for those looking to invest in 2024, especially prospective house hackers looking to get into real estate investing. Here&#8217;s how you can do it today. <\/p>\n","protected":false},"author":613680,"featured_media":168947,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7356,7119],"tags":[],"class_list":["post-168943","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\/168943","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\/613680"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=168943"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/168943\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/168947"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=168943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=168943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=168943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}