Orlando, FL · Member since 2017 · 19 posts · 11 votes
Hello,
I hope all is well with everyone!
I am about to close on a 4b/2.5ba home and intend on bring in 2 roommates. My question is for those who are successfully hacking SFHs by renting out individual rooms.
1. Do you let your roommates know you own the house or do you have it set up to where they think you are a renter also?
2. If the ladder, how did you go about getting started and maintaining this information?
April M. Kimble - you'll see forum posts on both sides of this issue. I let my roommate-tenants know because I was the owner counterparty on the lease. However, it's important to train roommates and keep specific boundaries. Late rent? Breaking lease rules? Damaging house? Getting unauthorized pet? You'll evict. Don't lower your standards when screening. Don't let anyone use a 'personal' relationship to override your better judgement.
April M. Kimble - you'll see forum posts on both sides of this issue. I let my roommate-tenants know because I was the owner counterparty on the lease. However, it's important to train roommates and keep specific boundaries. Late rent? Breaking lease rules? Damaging house? Getting unauthorized pet? You'll evict. Don't lower your standards when screening. Don't let anyone use a 'personal' relationship to override your better judgement.
If you value open and honest communication, be up front about it.
No harm doing so.
They could easily find out anyway by searching public records. In our county it only takes a minute to look up the name and mailing address of a property owner online, using only the property address.
How will the rental agreement define who the landlord is? As you or a business entity?
In our jurisdiction, not only the name of the landlord, but also the physical address of the landlord must be revealed in the rental agreement. This is so legal papers may be served upon the landlord if necessary.
Also, it will make addressing house repairs, and other issues regarding the property, much easier if you can do so transparently.
Simply OF COURSE.. why wouldn't you.. your the owner and if shared tenancy is what your planning on having a open type of atmosphere the others will wonder WHATS up if you don't.
Download your landlord tenant laws for your state and get familiar with what a landlord's responsibilities are.
If you are intending on being a owner/ landlord then be a owner/landlord. If you are afraid of the responsibility you may want to reconsider hacking and simply purchase a rental property with a PM.
If you can not handle the responsibility rethink your investment decision.
I would definitely let them know that you own the property. They are more likely to take care of the house if they know they are living with the owner. As it says above, do not give any special treatment to the tenants. Make sure they know when rent is due, and what the consequences are if they are late. Otherwise you will have roommates paying you 1-2 weeks late. I recently bought a house and rent it out to some college friends. Best real estate decision I have made so far.