Updated almost 2 years ago on . Most recent reply
Rent by the room strategy questions
I stumbled upon the "rent by room" real estate strategy that piques my interest quite a bit especially since I have not heard it being talked about at all. I have a couple of questions for those of you who use this type of real estate strategy.
I heard that there can be a limit on how many people can rent out a room and it depends on the area. Is it different only on a large scale like by state to state or is it different in every town? Also, how would I find out the tenant limit in my area?
How do the utilities work? The home wouldn't be separately metered so I'm assuming you would just charge a fee but I don't know for sure.
How do you determine the rent amount? Each tenant would have one bedroom and share a kitchen/bathroom/Living space so I would think you would get a smaller amount than what an apartment would make but do you offset it by making your spaces really nice and charge more for luxury?
How do you vet tenants? Aside from me wanting to house hack (I guess "room-hack), these people will be roommates so I would think excellent tenants would be a must.
Anything other pertinent or just food for thought information would be greatly appreciated, thanks!