Pros and cons of rent by the room?

[Maranda Tucker]

Up until now, we have shot down any opportunities to manage rent by the room properties; however it is a conversation I am having more often these days and considering it more seriously. What are the pros and cons of rent by the room?

[Steve K.]

@Maranda Tucker pros: you can charge more rent. Cons: more management intensive and higher turnover. From your perspective as a PM, you could potentially make more by charging tenant placement fees for each individual tenant and your monthly percentage will be higher due to higher gross rent, but you’ll probably also deal with more questions, issues, drama, etc.