Rent By The Room Property Management

General Landlording & Rental Properties
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Rent By The Room Property Management

Kenton LeVay
Investor · Austin, TX · Member since 2018 · 119 posts · 114 votes

Hey BP,

I've looked around a bit for property management that is willing to rent by the room but haven't had much luck. This isn't something I ~need~ right now but it is something I'm looking to for scalability. Is anyone out there aware of or has had experience rent-by-the-room property management?

Ps: Located in Raleigh, North Carolina.

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Victor SteffenBusiness Member
Investor · Austin, TX · Member since 2017 · 352 posts · 374 votes
5y

@Kenton LeVay Rent By The Room is the main focus of my business as a realtor, investor and manager here in Austin TX. As others have said- it's a total headache if you don't have the right systems in place. You also need to make sure you're purchasing the correct house with the right layout for RBTR success. 500sqft per tenant, no more than 3 roommates per shower though 2 roomies per shower is ideal. Multiple living areas (such as an upstairs living room as well as a downstairs living area). enough parking (focus on 3 wide garages, corner lots, or houses with long road frontage so as to not peeve your neighbors with cars parked in front of their houses). No HOA restrictions and stay within the non-related occupant codes in your city. There also needs to be cultural adoption in your city for the RBTR model. I know some cities where it is taboo to admit in your social circle that you live with a roommate, whereas in others it's expected.

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  • Shane Lafleur
    Real Estate Agent · Holly Springs, NC · Member since 2020 · 170 posts · 161 votes
    5y

    @Kenton LeVay

    @Cheri Kleber is this something you would handle?

    0Reply
  • Cheri Kleber
    Property Manager · raleigh nc · Member since 2021 · 5 posts · 3 votes
    5y

    Good evening! I manage the "traditional" SFH, TH, and Multifamily, not "rent by room". However, I have entered into a lease with the company, in THEIR name and then THEY entered into contracts with each individual leasee for "rent by room". As the PM, we collected one check from the company and they pursued collecting from the tenant. I hope this was helpful.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    5y

    @Kenton LeVay managing tenants willing to only rent a room sounds like a headache.

    In most markets, they will be very transient people with poor credit and poor work histories.

    Most investors would expect a PMC to charge standard rates to manage a boarding house, but it would be much more expensive.

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  • Mo P.
    Rental Property Investor · Oahu, HI · Member since 2017 · 12 posts · 11 votes
    5y

    @Kenton LeVay

    I am researching on RENTROOM, the all in one platform for my room rentals since Cozy will discontinue service on July 28.

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  • Lawrence BriggsPro Member
    Investor · Austin, TX · Member since 2020 · 367 posts · 377 votes
    5y

    @Kenton LeVay, renting by the room actually is a great way to scale if you select a market to support it. I have been in the Student Housing industry for many years within the College Station and Austin markets. You may want to research property management companies that specialize in student housing. The most important thing is to have the full unit pre-leased with all individual leases starting and ending at the same time. If you need anything else, I am more than willing to help. 

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  • Victor SteffenBusiness Member
    Investor · Austin, TX · Member since 2017 · 352 posts · 374 votes
    5y

    @Kenton LeVay Rent By The Room is the main focus of my business as a realtor, investor and manager here in Austin TX. As others have said- it's a total headache if you don't have the right systems in place. You also need to make sure you're purchasing the correct house with the right layout for RBTR success. 500sqft per tenant, no more than 3 roommates per shower though 2 roomies per shower is ideal. Multiple living areas (such as an upstairs living room as well as a downstairs living area). enough parking (focus on 3 wide garages, corner lots, or houses with long road frontage so as to not peeve your neighbors with cars parked in front of their houses). No HOA restrictions and stay within the non-related occupant codes in your city. There also needs to be cultural adoption in your city for the RBTR model. I know some cities where it is taboo to admit in your social circle that you live with a roommate, whereas in others it's expected.

    Podcast Guest on Show #790
    4Reply
  • Lawrence BriggsPro Member
    Investor · Austin, TX · Member since 2020 · 367 posts · 377 votes
    5y

    @Victor Steffen, all good advice. I used to work Student Housing in West Campus, loved that area! 

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  • Rachel Johnson
    Property Manager · Columbia, MO · Member since 2020 · 12 posts · 2 votes
    5y

    Maybe try a management company that does vacation rentals? Some of them will handle Airbnb's, so they might be willing to handle a Rent By the Room.

    0Reply
  • Howard Montaque
    Investor · Rockledge, FL. · Member since 2017 · 62 posts · 21 votes
    5y

    There is also PadSplit... 

    0Reply
  • Evan W.
    Developer · Asheville, NC · Member since 2020 · 37 posts · 37 votes
    5y

    @Kenton LeVay I know Alcove does rent-by-the-room via the arbitrage model. There's more profit in arbitrage, but less opportunity to syndicate and partner on deals. RBTR management seems like a good opportunity to take on yourself if you want to add value and stand out from other investors.

    1Reply
  • Evan W.
    Developer · Asheville, NC · Member since 2020 · 37 posts · 37 votes
    5y

    @Kenton LeVay I've flirted with the idea. Just look at where it's landed @Victor Steffen. 

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