House Hacking...Do property managers help you rent out by room?

6 Replies

House Hacking...Do property managers help you rent out by room?

I am planning on house hacking my first property and buying a 3/4 bedroom SFH, live in one of the rooms and rent out the other rooms. However, if I plan to move out of the house, can I get a property manager to rent out to tenants by rooms or is this not possible? My reasoning is renting out by room will net you more profit and cash flow per month than renting out the entire house to family and also reduce the risk and negative cash flows of vacancy due to more doors being rented out.

I am assuming most investors rent out by house but am wondering if it is wise to rent out by room and whether or not property managers also do this for investors. 

Thank you.

In many juristictions 'rooming houses' need special zoning. If you don't have that zoning, a legit Property manager would probably not want to get involved in anything illegal.

Originally posted by @Michaela G. :

In many juristictions 'rooming houses' need special zoning. If you don't have that zoning, a legit Property manager would probably not want to get involved in anything illegal.

 I have never heard of this. Can you point me to where I can find more information on this? Do they have this law in California or Texas?

Is this only a special zoning issue if you don't live in the property? 

Do a search for rooming houses on BP. 

Nobody wants to have a rooming house next door and a disgruntled neighbor can easily turn you in.

In Raleigh, NC four rooms or less rented by the room are unregulated. You can find managers for this but they generally want to charge an arm and a leg. You may want to consider AirBnb after you move out. There are a couple houses rented by the room and managed by AirBnb specific managers.

It depends...

I manage a number of student rentals that are set up to be similar to dorm style living-- 4 bed/4 bath condos.  I also own a couple of these, so that only makes sense.  I charge the same price on to manage these that I do on single family rentals, but yes every tenant is on their own lease.

However I really only isolate that to a few communities.  Once they are townhomes/single family homes, I rent them as an entire unit.  

This is just for my market though, so it really varies based on what market you're looking to get into.

I am in Sacramento, CA. California doesn't have a statewide law when it comes to room and board housing. You have to check your local (city or county) rules. Most counties have rules that are similar to Sacramento county to remain unregulated - up to six unrelated individuals may live in a house. Anything more than that, you'll want to check in with your city/county.

As for the neighbors, be proactive. Introduce yourself and maintain a good working relationship with them. They can't shut you down if you don't violate any rules, but they can make it more difficult for you.

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