Has anyone rented their property out by room (multiple tenants) rather than renting out the whole property as one? I think I can get closer to meeting my mortgage through renting by room but I have a couple questions for those who have done it successfully. For context, it's a new build (2021), corner lot, 3 bedrooms (and 1 office - wondering if it's possible to convert office into bedroom, it's 1 foot smaller than one of my guest bedrooms) so I'm looking for a way to find tenants that won't mess it up though I know that's never a guarantee. I'm also exploring using
Avail property management software for this (please let me know if good or bad idea) - I have no affiliation with this company, just trying to save on costs where I can. I am aiming to rent it out in January
How did you price it appropriately? All comps I've seen have been via the single tenant strategy.
How did you deal with listings (single listing for all bedrooms and prices vs one listing per room)?
When charging for bills/utilities, do you make the tenants pay it? How would this work for multiple tenants?
Hey Neal I’ve never done it, but I know many people that do it or tried it. The amount of work and stress will multiply so I would just be cautious about that
Yeah I'm definitely trying to be cautious about it. I would be paying a couple hundred ($200-300) if I just rent to a single tenant though so also something to consider.
Do a search for PadSplit. That is their business model. They handle the tenants while the owner handles the maintenance, utilities, and other landlording.
Hi Neal, I worked for a property management firm that rented only by the room in Austin, I was managing 192 units.
I now househack and rent every room (in Houston), and I manage some family rentals that rent by the room. PM me and we can talk more about it. It is very lucrative but requires more management.