Rent by the room / boarding house in NoVa?

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Rent by the room / boarding house in NoVa?

Geo Dan
Member since 2020 路 3 posts 路 0 votes

I'm looking to buy a property to rent by the room, preferably in Fairfax County. I see that Fairfax County has overcrowding restrictions, such as no more than 4 unrelated occupants per house. Fairfax County also requires you to have a permit of some kind to run a boarding house, but I can't find any info on this. Does someone have experience with renting by the room in Fairfax County? Is this legal?

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David Fernandez
Real Estate Agent 路 Vienna, VA 路 Member since 2016 路 289 posts 路 253 votes
6y

Hi @Geo Dan, I don't know of any permit that you need to rent by the room. As long as you don't rent it to more than 4 unrelated people, you should be good.

@Brian Jarvis, Renting by the room is a great strategy here, especially if you are looking to house-hack. It's a way to live for free in one of the most expensive areas in the country. If you are looking for an investment property, not a primary residence, you can get to cash flow it by renting it to 4 unrelated people, but don't expect it to meet the 2% rule or anything like that. If done well, your rent to purchase ratio can be 1% (rentals here are around 0.5-0.6%). Ths market, as you know, it is not a cash flow market, but you can generally bet on appreciation, annual rent increases, and a pool of great tenants. 

There are some areas that work better than others as well as property types. For example, a townhouse with low HOA fees and a walk-out basement is the property with the highest ROI when looking to rent by the room here.

Finally, the county is working on easing restrictions on permits to build/create accessory dwelling units (https://www.fairfaxcounty.gov/publicaffairs/county-proposes-changes-accessory-dwelling-units-and-home-based-businesses-better-serve-residents). This could be a game-changer for existing single-family homes with a walk-out basement. It is not approved yet.

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  • Brian Jarvis
    Fairfax, VA 路 Member since 2019 路 4 posts 路 1 vote
    6y

    This strategy piqued my interest as well after listening to episode 392 of the BP podcast. I was curious if the numbers work out in this area as a way to make nova cash flow. 

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
    6y

    Going to generally work better in Montgomery and Prince Georges County with 5 people allowed and DC with 6 people allowed. 

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  • Geo Dan
    OP
    Member since 2020 路 3 posts 路 0 votes
    6y
    Originally posted by @Russell Brazil:

    Going to generally work better in Montgomery and Prince Georges County with 5 people allowed and DC with 6 people allowed. 

    So you're telling me that it's legal? 馃檪

    I like Fairfax County because I live in it and I can manage the property directly and be a short drive away in case of emergencies. I was thinking of renting to college students.

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  • Daniel Suarez
    Fairfax, VA 路 Member since 2017 路 183 posts 路 58 votes
    6y

    I鈥檓 also interested in this. Where were you looking close to George mason?

    0Reply
  • Adrienne Green
    Real Estate Consultant 路 Chattanooga, TN 路 Member since 2018 路 384 posts 路 330 votes
    6y

    I am not aware of any Fairfax County permit you would need if you were renting out rooms on a long term basis. If you were renting out rooms on a short term basis (<30 days), then there is a permit and other regulations: https://tinyurl.com/y2gtcw3z.

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  • Geo Dan
    OP
    Member since 2020 路 3 posts 路 0 votes
    6y
    Originally posted by @Adrienne Green:

    I am not aware of any Fairfax County permit you would need if you were renting out rooms on a long term basis. If you were renting out rooms on a short term basis (<30 days), then there is a permit and other regulations: https://tinyurl.com/y2gtcw3z.

    That's really good news! Thank you!

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  • David Fernandez
    Real Estate Agent 路 Vienna, VA 路 Member since 2016 路 289 posts 路 253 votes
    6y

    Hi @Geo Dan, I don't know of any permit that you need to rent by the room. As long as you don't rent it to more than 4 unrelated people, you should be good.

    @Brian Jarvis, Renting by the room is a great strategy here, especially if you are looking to house-hack. It's a way to live for free in one of the most expensive areas in the country. If you are looking for an investment property, not a primary residence, you can get to cash flow it by renting it to 4 unrelated people, but don't expect it to meet the 2% rule or anything like that. If done well, your rent to purchase ratio can be 1% (rentals here are around 0.5-0.6%). Ths market, as you know, it is not a cash flow market, but you can generally bet on appreciation, annual rent increases, and a pool of great tenants. 

    There are some areas that work better than others as well as property types. For example, a townhouse with low HOA fees and a walk-out basement is the property with the highest ROI when looking to rent by the room here.

    Finally, the county is working on easing restrictions on permits to build/create accessory dwelling units (https://www.fairfaxcounty.gov/publicaffairs/county-proposes-changes-accessory-dwelling-units-and-home-based-businesses-better-serve-residents). This could be a game-changer for existing single-family homes with a walk-out basement. It is not approved yet.

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