I just bought my first single family home that I will be house-hacking. I have 3 extra bedrooms to rent out. I would like some advice on how I might deal with the issue of roommates breaking something in a common area.
For example, somebody makes a big burn mark on the butcher-block countertop. Nobody admits that it was them. Can I include something in the lease that states that repair costs of common areas will be split between all security deposits equally if nobody admits fault?
Since renting to roommates is a little different than just renting an entire unit to tenants, what other suggestions do you all have of things I should make sure to include in the lease?
I'm very grateful for any advice I can get from those with experience in this area!
Nancy had great advice. Also having a cleaner come in every week or two means you have another set of eyes on the place who can tell you if there are problems. Remember there are lots of good tenants out there, but you usually only hear about the problems.
I just got a call from a college gal interested in renting my property with 3 other roommates. 2 men 1 woman. I asked if she planned to turn it into a party house and she said no we would only have 2 or 3 people over. I asked who would scrub the toilets, clean fridge, and take out the trash. Oh all of us would. (!!) And would loverboys and girls be staying over, she said oh no we dont do that. She said their parents would be paying the rent. But she didn't understand how the rent actually would be paid if it was cash, bank check, wire transfer, etc. Parents live out of state. I asked her if she would allow couch surfing and if her parents would be happy to be paying for that type of squatting.
I think you have far more serious aspects to worry about if you’re taking on the hard and unrewarding work of renting to roommates.
Why not include all rooms in this. They can and will damage bathrooms, windows, doors, walls, paint, etc. See the damage from an aquarium that was against a wall. It’s on this site.
There is no way to prevent one of the roomies from packing up & leaving the rest to pay her/his share. Then you have to find a replacement that might be worse (or better maybe) very time consuming.
My cousin did that for several years before marriage and it worked out well. I asked him how he managed...
He knew the tenants very well. They all had good jobs ( engineer types)and liked being in a quiet convenient neighborhood vs an apt.. One even got married, moved out, and returned after his divorce. He said he liked living with the guys better than a wife! I think they had 4 and it naturally attriciated down to 3 and 2, but they all got raises and could afford it and I think he paid the house off.
The yardwork was hired out and they had a regular house cleaner. He covered it in the rent. He said it cut down on arguments and everyone got along..
As far as damage you need to be preventative. Show them where all the cleaners trivits cutting boards are located and how to use them. label! You can make a list and have them sign, dos and donts. Ie don't yank plugs out of outlets.. I think you should have each one with a damage deposit. Have a trial period if they don't work out. it's your house. They will show their true stripes after a couple of weeks. I highly doubt they will set hot pans on butcher block but you will have to be alert every day to catch it. Don't charge the others, they will resent it more than it's worth.. You'll need to stand by during move in so they don't scratch floors doors etc.. and most likely help them move..You'll need to think about easy care floors, bathrooms and kitchens. The cabinets will take a beating. you might want to reseal or repaint and hopefully they aren't super expensive. Use the new plastic shelf liner in all the cupboards and install something similar in sink cabinets. ( Even a piece of vinyl flooring ). No one else cares if the plumbing leaks.
You are going to need to charge enough so you won't get upset about the small stuff. A lot of people weren't ever shown how to take care of things. I would put the fragile valuables somewhere else. My daughter had little damage when she rented out her lower level rooms while she lived upstairs. When she did whole house str she said the damage was a lot more expensive and annoying. Like button ripped off upholstered couch. One grandmother stood on an upholstered chair to fiddle with the blinds and fell through the window. And they threatened to sue.. The resident tenants will have places to go and be. You might want to stay around during the cooking etc.
Nancy had great advice. Also having a cleaner come in every week or two means you have another set of eyes on the place who can tell you if there are problems. Remember there are lots of good tenants out there, but you usually only hear about the problems.
In my opinion house hacking and room renting is not worth a little bit of money saved or earned.. That’s my IMO of course. It would definitely have to be an ideal crew and as life has it there’s very few ideal situations. The fact that you’re worrying about it in advance means that you might be stressed out the whole time. If you wanna babysit to make some extra money get a side job at a daycare. Toddlers are easier to control than adult babies.