Renting out rooms in a rental property

Renting out rooms in a rental property

Investor · Capitol Heights, MD · Member since 2011 · 7 posts · 6 votes

I have a 3 level property with finished basement. The top floor is a master suite. 2nd floor has 2 BR, office, shared bath, and laundry. The basement has a living room, BR and bath. My intent is to rent individual rooms. First floor would be a common area with living, dining and kitchen areas. Can someone provide advice/insight in going down this path? Lease agreement, house rules to have, best practices, etc.

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Denver, CO · Member since 2018 · 48 posts · 20 votes
7y

Hi @Kelly Clark,

You can Google Fair Housing Rules for more indepth information on this topic. But, in top of mind, the FHA prohibits discrimination on the basis of seven protected classes:

  • race
  • color
  • religion
  • national origin
  • sex
  • disability, and
  • familial status

Hope this helps!

Best,
Sam 

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  • Tucson, AZ · Member since 2016 · 36 posts · 17 votes
    7y

    If it's gonna be a shared bathroom, have a time limit for each use. Like 30 minutes or something. Have them or provide TV's in each room that have headphone adapters, so as to not bother other renters. Furnish it, the last thing you wanna do is have your rental over run in the garage or the rest of the place with someone trying to store their stuff or have you pay for damages done to their stuff. I would not do pets, you may find a good renter and the other may be allergic to cats. Month to month rent, makes an easier option if it doesn't work. For common areas if most of the renters have the same schedule, I would say no loud movies after a certain time during the week.

  • Denver, CO · Member since 2018 · 48 posts · 20 votes
    7y

    Hey @Halie Washington -- Cool! I like the route you are going down.

    I would start by thinking about your renter criteria. Considering you are going to have multiple people in one rental property it might save you a headache (or two) by renting to those who have similar requirements. For example:

    Can they have pets?

    Is smoking okay?

    Are they willing to share common areas?

    Once you have your renter criteria created, you could put it in your rental listing so that those who believe they are qualified are more likely to apply than those who don't match with your renter expectations. You could go as far as requesting an ideal age range and occupation expectations. For example, maybe you are looking for those who work full-time day jobs, or if you are in a college town, you may only rent to college students. That way your tenants are living similar lifestyles and are more likely to mesh.

    My final thought is to thoroughly tenant screen everyone (who is 18 or older) that will be living in the unit. Not only does this help to ensure the safety of everyone in the unit, but can also help to determine how they will treat your rental property and if you will get paid on time.

    Best of luck!

    - Sam 

  • Investor · Capitol Heights, MD · Member since 2011 · 7 posts · 6 votes
    7y

    Thanks all for the info.

  • Investor · Spokane, WA · Member since 2019 · 49 posts · 28 votes
    7y

    @Samantha Decker If you specify tenant criteria (gender, age, etc), is that considered discrimination? 

  • Investor · Capitol Heights, MD · Member since 2011 · 7 posts · 6 votes
    7y

    @Kelly Clark Good question.

  • Denver, CO · Member since 2018 · 48 posts · 20 votes
    7y

    Hi @Kelly Clark,

    You can Google Fair Housing Rules for more indepth information on this topic. But, in top of mind, the FHA prohibits discrimination on the basis of seven protected classes:

    • race
    • color
    • religion
    • national origin
    • sex
    • disability, and
    • familial status

    Hope this helps!

    Best,
    Sam 

  • Investor · Spokane, WA · Member since 2019 · 49 posts · 28 votes
    7y

    Thanks @Samantha Decker for the quick list and how to learn more details!

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