There's a home in my town with 6 bedrooms for sale ($100,000 asking price). I never see homes with more than 3 bedrooms up for rent here so I have no idea what the demand would be for this home. Very large families may be drawn to it I suppose, but that's a very small part of the population. I was thinking of either renting out each of the rooms for a low price like $250/mo (nice 3 bedrooms typically go for around $900) or going to talk to some fraternities/sororities on the college campus nearby to see if they would be interested. I would think the Greek organizations would jump all over the possibility of a frat/sorority house and even pay inflated prices for that kind of house.
What would you think? I'm unaware of any laws regarding how many unrelated persons can live in the same house in my state, so I would need to check into that as well.
Originally posted by @Wayne Bodley :
I have a 4 bedroom house that I rent by the room (only because I need to house my mother in law) Unfortunately it's been nothing but a headache since it started 4 months ago. Getting 4 people that get along has proven difficult and collecting 4 separate rents is a pain. So I would be careful there. Ultimately a 6 bedroom house might be tough to rent. Local laws are another thing altogether. Sorry to be a downer but in ten years of being a landlord I've never had so much grief. I'm even considering selling this house.
Do you get any more rent for the house than if you were to rent it to a single family, or is it just a lot of extra hassle for no extra pay-off?
In my scenario it's a trade off because I pay all utilities plus Wi-Fi and cable plus I'm responsible for lawn care so for me it's not really worth it. Best case for me would be cash flow of about $600 (each room is different so the range for me is $350- $525 / mo.) but I haven't realized that just yet. Still hopeful. I would switch over to single family or sell but for needing to house the MIL. It may be worth a try for you, definitely check local zoning though, you wouldn't want to get in hot water for nothing. It's an adventure that's for sure, you'll be very hands on!
College groups including greek houses can be good tenants, or nightmares. THink about what a fraternity is going to USE that property for. I am in a fraternity and currently manage our chapter's housing. I would never rent to us, and we are on the better end of the spectrum. Sororities.. ALL DAY... they are basically banned from having events at their houses... plus they are all women... clean. But also watch for zoning and permitting issues when renting to large groups. in my town, each house has to have a permit to be rented by greeks. And the city wont issue any new ones.