House Hacking - Renters

5 Replies

Hello!

I am under contract on my first home and am planning to house hack! BP has greatly inspired me to start my real estate investment career with this method. If all goes well, I will have a 4 bedroom 2 bath in Lakewood, CO. My question is regarding renters!

Where do you find your renters? 

What methods do you use to price each room at a fair market value?

What are boxes you check before having someone sign a lease?

I'm a first time landlord and appreciate any and all tips you have! Thanks in advance!

I house hack a condo and was in the same boat some years ago. Congratulations,

Don't rent to friends! You don't want to be a situation where your relationship with them gets in the way of the rent coming in on time. I would do the same due diligence as any regular tenant: income and credit check, and if your area is a competitive rental market I would check references from previous landlords.

I used a lot of roommate finder websites like craigslist, roomster, spare room, just to get a sense of prices with relationship to amenities (parking etc, shared or private bath, etc). I only charged two months up front, the first and a security deposit, but some ask for first and last and security. Also check your local laws regarding tenants v. lodgers, and make sure you lease is legally sound, getting stuck with a bad tenant is even worse when you are living with them!

Originally posted by @Toni Baca :

Hello!

I am under contract on my first home and am planning to house hack! BP has greatly inspired me to start my real estate investment career with this method. If all goes well, I will have a 4 bedroom 2 bath in Lakewood, CO. My question is regarding renters! 

Where do you find your renters? 

What methods do you use to price each room at a fair market value?

What are boxes you check before having someone sign a lease?

I'm a first time landlord and appreciate any and all tips you have! Thanks in advance!

Hi Toni, I've been house hacking for several years just a bit south of you in The Springs. It's a phenomenal strategy here in CO! To answer your questions:

1.) Craigslist (others seem to dislike it but I've gotten my best tenants here), FB Marketplace and Zillow have been sufficient for finding house hack tenants up to this point. 

2.) I looked around online and then priced mine about $50 higher to see if I could get it (I did). You can always test out different ads with different prices. 

3.) Background check, talk to their last two landlords, talk to their boss/verify their income and set your expectations! If they're living in your house make sure they're clear on what you expect from them. For example, I make sure my house hack tenants know they're to keep the kitchen/bathrooms clean and not make noise in the evenings! Whatever is important to you, be sure to communicate it to them. 

Also, think about schedules. If everyone works a 9-5 and needs to use the kitchen at the same time that may be problematic. 

If you do this right it can dramatically accelerate your progress and be fairly passive. Message me anytime if you have any other questions. 

-Dan
 

@Toni Baca fingers crossed as you are under contract and hopefully all goes well. 

I would market on Craigslist, facebook market place And WOM.

I would again check Craigslist, use rent estimator tool and ask a PM what a one bedroom apt rents for in your area.

That starts by identifying your standards and sticking to them, credit and background check and verifying income.

Keep us updated on your deal when it goes through.

Cheers, 

Carlos 

who will do a tenant check for you reliably and reasonably priced.  Is this a better option?  

anyone have experience with paying for some help with that?  I am thinking for my first one, I would rely on a reliable agency that could do it accurately and safely.

@Toni Baca Very exciting - congrats! There is some good advice on this thread by @Daniel Haberkost and @Rory Kinnear

If you found your deal through and agent, and are friendly with them, you can ask them about rental prices. It doesn't take an agent long to look at the comps in the area to give an idea of what you should be getting for rent. Another tip would be to put yourself in the shoes of a renter - where would a renter go to look for a place? Zillow? Craigslist? Wherever renters look in your area, see what's available for rent and price yours accordingly (depending on location and condition).

You can also call other landlords in the area (by their rental listings) and ask them questions. Find out where they normally find tenants and what their screening process is. Not everyone will be willing to tell you, but you'd be surprised with how many people like to help. You have nothing to lose by calling.

Best of luck!