Renting per-room vs whole home

[Carlos O.]

Hi everyone,

I just have this thought in my head and I would like to get some feedback from others on the idea since I am a beginner. In my search for properties I am seeing a pattern of diminishing returns on rents as the number of rooms increases in a home. That is,  I can rent a 3-bedroom home for say $1400, but a 4-bedroom may only rent for $1600. However, rooms in that same area may go for $450-$500 a pop. In theory, I should be able to rent the 4 bedroom home for 2K, but that doesn't appear to be the case. I gathered this data from looking at rooms vs home rental prices on CL. 

So the questions that I have:

1. Does everyone see the same pattern?

2. Would it be better to furnish a home's living space and then rent out each room individually?

3. Has anyone ever tried this and how did it go?

Thanks,

Carlos O.

[Jerry W.]

You have just stumbled onto the most common form of rentals to college kids.  I know that lots of other folks rent rooms out as well.  A lot more headaches but it can bring in more money.