Would love to hear the thoughts and advise of others about renting to tenants that will be roommates. My first SFR I am turning into a rental is up for rent. I have a nice single lady with a 4 year old and her female roommate wanting to rent. Obviously both adults would be on the lease. Combined income is 3X rent, job and employment history checks out good. What are your thoughts on renting to 2 adult roommates?
I have been looking into this idea as well as a first time REI possibility. The way I look at it is, as long as they don't get complacent paying for rent then there shouldn't be any issues, other then the usual ones that come with living with roommates....personally I wouldn't tell them I'm the owner/landlord because I think that would bring some issues that could be pretty troubling to live with though. That's just MO
We do it all the time and it's the nature of our business as we only do shared housing. How long have they been friends and what's their history together? Check landlord references but skip the current one....go one back...assuming that they have rented before. Run a criminal background on them...if everything checks, get them signed to a lease with 1st & last month rent....good tenants are hard to find! Happy Investing
I have 2 roommate tenants now and they're excellent. They both have good jobs, had great references and I explained clearly up front that only one of them (they had to decide) would be the main point for paying the full amount of the rent and communicating with me for any repairs. It's in the lease. Also, only one of them gets the security deposit back and they chose which one. This is to avoid any issues at the end of the lease where the tenants may disagree on who broke the microwave or stained the carpet. I don't want to get involved in disputes. The lease states the deposit goes back to Tenant A, and they will have to work it out themselves.
They've been among our best tenants so far. They both work for the same company, so there is some risk in the future if the company has layoffs, but that's life for any employee/tenant.
So definitely get the last month's rent if there's any doubt.
My friend and partner did this for several years.
It has it's pros and cons.
A lot of the same issues as a regular roommate.
Dirty dishes, clothes, not wanting to clean the house.
Pro, the rental agreement is a little more loose. You should contact a lawyer, as to how things work in your area.
I have heard that eviction is easier. When things got really really bad with a roommate/tenant. He just told him, it's time for him to move out. It ultimately saved their friendship.
To clarify. I will not be living in the house. I will be renting it to 2 adults who are roommates.
Thank you all for the insight
I have a nice 3 bedroom that I rent to 3 roomates actually. As a result I get more monthly vs. it being a family which is great. Flip side is rent comes from 3 different sources which can be a bit of a pain sometimes.
Overall it has worked out well for me. Just can be a pain whwen 1 roomate want to move and we have to search for a replacement.
I get approx. 1800.00 for a 3 bedroom VS 1450 - 1500 if it were a family so the extra 300 monthly makes it worhwhile IMO....
I wouldn't do this for more then 1 property however as then I can see it turning into a headache quickly.
I also rent one of my properties to two adult woman. They are both school teachers and their references and employment checked out fine. I could not be happier with them. It should not matter whether you rent to roommates or not so long as their references and employment are in check. The only thing I find a bit more of a hassle is that they both pay the one half of the rent so I have to meet up with them both, usually it is separately to get the full rent.
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