I just bought a house and was thinking of renting two of the other rooms. I was thinking of making rent all inclusive with rent, utilities, cable, internet, cleaning services and household common area shopping( toilet paper, soap etc). Is this a good idea? Or am I going to be broke with this option?
Personally, I think you will go broke with this option. I'm not sure how conservative or frugal you are but some of the water and electrical usage by my tenants are astounding, and I am so so glad I am not responsible for their utility bills.
Furthermore, if there is ever a dispute between you and the tenants, it is so so easy to put the responsibility on your for not supplying this or that.
Maybe some times like internet or cable (without pay per view) might make sense, but i couldn't imagine anything else.
When I rented out rooms I sometimes included gas, water, electricity, and internet, but I accounted for it as part of the cost and an excuse to charge more. I did this so I could rent to short term tenants.
I tried putting limits (ex. tenant pays extra if the electric bill goes over $100) but that didn't go over so well and I didn't do it again.
I suggest just bundling in utilities and splitting the costs of TP and maid service. Soap? Ewww, use your own darned soap. No soap sharing that's just icky.
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