How Much to Charge For Rent

Question

When house hacking, do you charge the tenants for the beds and bath they use or do you charge them the full 4 bed, 2 bath rent?

Example:

• Single-family
• 4 bed
• 2 bath

Median rent for 4 bed, 2 bath is $1,850

Median rent for 3 bed, 1 bath is $1,250

Clay Boykin · Answer

@Joseph Romano Look at the bigger picture here. It sounds like your trying to manage that 1% rule based on your numbers, even while house hacking. The trick to being a good landlord is exactly what @Jeff Cantrell said, find a price that meets your standards as well as the tenants. If you can acquire long term tenants that wont completely destroy your property, that's probably more valuable than making an extra 100-200 on tenants who do. Make sure your actively doing your due-diligence on the area around the property. The market is always changing and this is a game of adapting to it! Feel free to reach out to me with any questions. Either way, Happy Investing!

Jeff Cantrell · Answer

@Joseph Romano

First look at it from a financial standpoint. Run the numbers and see what makes sense.

They’re obviously not going to pay you for the entire house when you are using part of it yourself.  Make them a price that’s fair to you and them. Have a clear cut contract. Treat them well and watch them build wealth for you.

Jordan Noble · Answer

Hey Joseph

Great job pulling median rent for both 4/2 and 3/1 to see what the range of rental prices are in the area.

In regards to renting by the room (house hacking a sfh), this strategy would typically bring more rent than just renting out the entire house to an individual.

For example, median rent for a 4bd/2ba house might be $1850 but if you rent it by the room (individual lease for each tenant, each tenant pays you separately) you might be able to get $500/room or $2000 for the entire house.

I would dig into more specific comps and look for rent by the room listings in your area to determine more.  Hope this helps a little.

How Much to Charge For Rent

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