Hi BP, I recently bought a house in mesquite Tx in the 75150 area and I am getting ready to move out. I am debating on renting unfurnished room by room (besides common areas will be furnished) or renting out the entire house. This is a 4 bedroom and 2 bath SFH. My question is there anyone in the mesquite area that is aware any rules or regulations against renting room by room ( I haven't personally seen any). And any pros and cons that you have came across renting room by room in this area. Like vacancy or quality of tenants this area may attract? I know room by room can get a higher cash flow but as this is my first rental property I feel like renting the whole house might be the easier way to go even though it would cash flow less. Any advice would be great!
Real Estate Agent · Dallas - Fort Worth Metroplex · Member since 2020 · 66 posts · 57 votes
4y
Hi Vanessa, I would recommend renting by the room if you only have one rental. $600 per room is my best guess for that area, depending on the quality of the house of course, which is $2400 in gross rents. Compare that with getting only about $1800 for the whole house, even if you are paying for the utilities in the RBTR scenario. An extra $7200 per year in income is easily worth the few extra hours of work for finding multiple tenants. Be diligent in your screening process.
As for rules and regulations, call the city and ask. I'm pretty sure that mesquite requires of certificate of occupancy, regardless if you are doing RBTR or renting the whole house.
There are pros and cons to both. Are both bathrooms accessible to everyone in the house or is one an ensuite? If you do end up renting by the room make sure you mention it includes mowing the law (hire that out) and a weekly cleaning of common areas (they have to clean up, but pay someone to wash floors, windows, toilets, etc.).
You might find it easier to do the whole house at first as you mentioned.