All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Hard Money Lenders Insurance Contractors Investment Companies Build Your Team

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
ForumsArrowOakland Real Estate ForumArrowRenting out rooms vs unit
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Create post

Renting out rooms vs unit

2 Replies | Oakland, California

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
  • Posts 5
  • Votes 0

Charles Benkendorf

posted about 2 years ago

Hi all,

I'm looking into potential purchase of a vacant duplex in Oakland. I would plan to move into one unit and rent other out. I understand with Measure Y, the second unit would be rent-controlled / eviction protected. However, for the unit that I plan to rent out, is it possible to rent out bedrooms instead of the entire unit? Say it's a 3 bedroom unit, it could be that renting out 3 shared bedrooms could bring in more rent than renting a 3 bedroom.  I'm not thinking of Airbnb or anything, just having standard leases. Plus I'm a little nervous about one person taking the lease, then holding on and renting out the other bedrooms at market rate down the line.

I know it's probably more overhead and perhaps more liability (e.g., if someone damages the stove, can I hold them all responsible if they're all separate?), just looking to understand the trade-offs.

Thanks!

Rotate Log in or sign up to reply
user profile avatar
  • Posts 1.6K
  • Votes 1.2K

Frank Chin
Investor from Bayside, New York

replied about 2 years ago

Depending on the jurisdiction, you might run into rooming house regulations. You'll have to check on it.

I have rental in areas where it prohibits 3 or more unrelated people living together unless approved as a rooming house. So if you get into a dispute with a neighbor, they could complain to the town. Other than that, they don't come around to check.

I had a SFR rental tenant complaining about a neighboring house rented to roommates, they often have friends coming over to play cards, park their cars in the public street in front of our SFR. He complained, and they told him, the LAW SAYS it's a public street. He responded THE LAW says you didn't get an approval for a rooming house, for 3 or more unrelated people. They didn't park there anymore. Guessed they checked on the law.

I rented the SFR a few times to roommates, and sometimes they have three. Its got 3 bedrooms. No one bothered me on it. If I rented rooms out, someone could say, "hey, who said you can run a rooming house."

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Flipping, Real Estate Finance, and Team
  • Posts 1.9K
  • Votes 1.9K

Brian Garlington
Realtor from Oakland CA

replied almost 2 years ago

@Charles Benkendorf

I bought a vacant duplex in Oakland 3 years ago and specifically looked for a Section 8 tenant.   If a tenant is receiving government assistance (Section 8, Abode, Vash, etc.) then they are NOT restricted to rent control. 

Guaranteed money AND not subject to rent control,....  

Rotate Log in or sign up to reply
  • 1
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Brian Garlington
Brian Garlington
Oakland CA
9.29
Score
Stephen G.
Stephen G.
Oakland, CA
5.23
Score
Jason Porto
Jason Porto
Oakland, CA
1.61
Score
DG A.
DG A.
Oakland, CA
1.61
Score
Ryan Scott Isacksen
Ryan Scott Isacksen
Castro Valley, CA
1.61
Score
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.