House Hacking Single Family Properties

6 Replies

Hi Everyone, 

I am curious and would love to know how you would split utilities amongst yourself and the tenants. This would be a house hack so you will be renting out the other rooms and sharing the common areas. FYI, I just received the book on house hacking strategy @Craig Curelop so the answer can very well be there as well but I love to have conversations with my fellow biggerpockets family. 

@Byran Hyatt when I rented a room from a person in college, it was a flat fee.  I think that is easier to do than trying to split utilities etc.  My friend who is currently house hacking is advertising his rooms all utilities included, that way there is no confusion or frustration if 1 roommate take 1 hour showers and 1 takes 1 minute showers. 

Take the total cost of utilities for the past year and divide it by 12. That gives you a monthly average. Divide the monthly average by the number of rooms rented.

Annual cost: $5,000

Monthly average: $417

# of rooms: 4

Cost per room: $104

I typically add 10 - 15% to each individual to cover waste because people tend to waste utilities when they don't see the bill each month. That would bring it to about $120 per room. Bump the rent by that amount and include utilities with their rent.

There are companies you can use to do RUBS or a utility bill back. I’m personally not a fan of by the room rentals but I would do a flat rate with a split for overage over a base amount. 

I also just do a flat fee with the monthly average. I count electric, gas, and water. I don't include internet, lawn care, or pool care in my flat fee since I'd have to do that if I was living alone anyway. Regular internet works fine for everyone, haven't had any complaints on speed.