My contractor has had a house in Indianapolis that he made into a boarding house for retirees years ago and has bee doing very well with a waiting list.
My question to BP Nations is has anyone rented per room in a single family home and had you rental income increased.
I am most interested to hear from people who have done this legally and turned an acceptable rent property to an outstanding high rent property
@Kevin Yoo I haven't done it myself and my only experience was when we rented a room for my grandmother in a home that had been converted to a senior living facility. They charged an exorbitant rent to our family for her stay but it came with 100% care. If I recall correctly it was $4,000 a month and the home had four seniors living in it. I don't know if this is what you are considering doing but I thought I would throw it out there.
The first I've heard of boarding house investments was just this morning on an members intro forum. He was reflecting on how his first venture into REI was when he was young and desperate and made the mistake of investing in a boarding house.
Hi @Kevin Yoo , I created a blog post regarding my experience with this and there is some discussion down below in the comments that you might find relevant:
But there must me others out there in BP Nation that actually did this with their rentals that you are not living in.
Moreover, can you Jeremy or others tell me the legality of doing this? Are their licenses, permits and codes that one must meet in order to rent per room?
Hi @Kevin Yoo , in the comments underneath my blog post there is a bit of discussion about renting by the room and *not* living in the house. I started renting rooms in my personal home but then I moved out in 2008, and for the last 7 years I've been continuing the rent-by-the-room and *not* living there myself. It has worked out reasonably well, but there is more turnover than my other multifamily rentals. I'm planning to sell that property later this year and roll the equity into another property. The rent-by-the-room has definitely yielded more cashflow than it would have to rent out the whole house to one family, but I think I can make even better cashflow by rolling the equity into a 5-plex or 6-plex. It ends up being more work for my Property Manager to find a harmonious fit between the roommates, whereas that isn't a concern for separate multifamily units.
I'm not aware of any licenses, permits, or codes that apply to this method of renting.
My contractor who has the B&C in Indianapolis is renting per room to retirees. He tells me there is very little turnover and has a waiting list. You seem to have rented to younger people.
So, my burning questions is if there is anyone out there that has taken a 3/1 $30K home that would only rent for $600 as a SFH and turned it successfully into a rent per room situation to retirees and gotten over $1000 rent (but now paying for utilities).
Does any know if Texas require any licenses, permits, or codes that apply to the method of room renting.
I have a similar type of rental 6 br house, for starters each room needs a room number, if you need to evict that is what is listed. Common use general areas are shared clean up, sometimes the people decide on a chore chart so it's kept track of. Weekly Clean house on Sunday. Shelf in kitchen for each room, fridge space is labeled. NO mini fridges permitted. NO Smoking. Designated parking spots. No junk outside their rooms. No overnight visitors. Down time as per what the guys set like, after 11 pm no loud TV, or music. Utilities are included but A/C window units are more $ during summer months to use. Crime Free/ Drug Free addendum and month to month leases with deposit.
Electronic key pad entry door, and on each room also... no keys
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing