My husband and I are about to close on a duplex that were going to house hack in. The rent from the other unit isnt quite enough to cover the mortgage but I think there is potential to use that unit to rent by the room. Are there any laws or things to watch out for when using this rental strategy? I haven't found anything against it, my sister rents by room in a college town. Also any tips that help when renting by the room (where to post the listings, furnished vs unfurnished, etc) would be greatly appreciated!
@Cassandra Lesa , I think the place to look for legality is probably at the local level. Sometimes municipalities create a local ordinance limiting the number of unrelated people who can live in a single unit. Generally these kinds of ordinances aren't strictly enforced, but if they feel your unit is a nuisance because of noise, drug activity, etc then they might use that type of ordinance against you. So, I would check for that type of ordinance.
@Cassandra Lesa hi cassandra, rent by the room is all that i do. there are local ordinances (normally) to watch out for. for example, they may limit the number of unrelated people in each unit to a certain number. if the limit is 4 and you have a 3 bedroom single family (one unit), that would not fly with the town. however, if you can pull off this strategy, it is worth it and very powerful. i am always happy to help. i also write for the BP Blogs. i have written several articles about the benefits and pitfalls of this strategy.
@Kevin Sobilo ill definitely do that. thank you!
It has to be partially furnished because you have to furnish common areas. Will your market support it? there is usually a going rate for rooms in an area check local for rent listings, utilities are usually included. If the room is furnished will be dictated by your market. Are you Airbnb then you have to be furnished. College students could go one way or the other. Professionals may want their own bed.
Check if you have a local unrelated persons ordinance. In our area it is 3 person limit if you are unrelated.
A Tip for you *****You will get better help if you add your location to your profile. It will show up next to your name and local people may chime in.
@Ryan Deasy how can i find those blog posts? i dont see them linked to your profile or when I search your name.
@Colleen F. We live by a military base so there are a lot of single servicemen in the area which is what Im relying on moving forward. I think furnishing common area and washer dryer will work and leaving the bedrooms empty. I assume people prefer their own bedroom stuff but that might just be a projection of my preference. Thanks for your help!
@Cassandra Lesa here they are! let me know how i can help. pretty much have seen and done it all with the rent by the room strategy!
@Cassandra Lesa I would check the county website and also the city website sometimes the city has different rules then the county. In my city/county I can have up to 8 unrelated adults but another county 15 minutes away only allows for 5.
We normally furnish the common areas and leave the bedrooms for the tenants. In my market most have there own beds.