Is there still interest in Rooming Houses as a STR?

Memphis, Tennessee
Buying & Selling Real Estate
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Is there still interest in Rooming Houses as a STR?

Adrian Henning
Member since 2018 · 2 posts · 1 vote

Do Investors still have interest in rooming houses? Rooming houses usually don't get to take advantage of sporting events, concerts, festivals that usually result in spikes in rental fees and more profits ( and glory) that AirBnb and other STRs get to. But if set up correctly, they can be more consistent performers over time and have more predictable cash flow. 

I have a 3 home package that I'm working in my market. I was wondering if: 1) investors still found rooming homes as viable? 2) What would be best way to market those rooming houses. I'm listed on MLS and I've posted in all of the groups on facebook. Now I'm here. Any info would be a huge help. Thanks!

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  • Ben TrageserPro Member
    Accountant · Montclair, NJ · Member since 2020 · 218 posts · 104 votes
    1y

    I can't speak directly in regards to the Memphis market but here in New Jersey, I actually do see a good number of them. They have always intrigued me but I never looked further into it as they're a little out of my wheel house. Listing on the MLS is a good start and listing them commercially as well works. They seem to take a little bit more time to move.

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  • Jordan RayBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2023 · 642 posts · 333 votes
    1y
    Quote from @Adrian Henning:

    Do Investors still have interest in rooming houses? Rooming houses usually don't get to take advantage of sporting events, concerts, festivals that usually result in spikes in rental fees and more profits ( and glory) that AirBnb and other STRs get to. But if set up correctly, they can be more consistent performers over time and have more predictable cash flow. 

    I have a 3 home package that I'm working in my market. I was wondering if: 1) investors still found rooming homes as viable? 2) What would be best way to market those rooming houses. I'm listed on MLS and I've posted in all of the groups on facebook. Now I'm here. Any info would be a huge help. Thanks!

     Hey Adrian, I do not see a-lot of this in Memphis TN. Occasionally, I will get an objection from an off-market homeowner that "might" sell saying... "I was looking at get my property rented by the room to college students or Veterans" but I don't actively see this happening often. Hope this helps!

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  • Renee BaconPro Member
    Real Estate Agent · Saint Clair, MI · Member since 2017 · 39 posts · 28 votes
    1y

    I'm in several co-living groups, and the rent by the room model is getting more popular. Padsplit is a topic of discussion also (STR room rentals), but I think LTR's are a little more consistent with income and a bit less work. It really depends on location, quality of home features, amount of privacy for renters/members, and competition. Have you looked into advertising as a co-living LTR, or as a 'business to buy'? If it's vacant, that last option won't work. Non-profits and/or sober living operators may also be interested, depending on their needs. Good luck!

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