Too Many Adults in on SFR House Hack?

3 Replies

Hey BPers,

I have a 4BR 2BA SFR primary residence. I currently rent out two bedrooms, live in the master, and have the fourth unused. The two bedrooms and rented out to two male adults and they share the common bathroom. The bathroom is not big by any means but in my opinion it's not too small (unless you like to dance and party in there). Fits a toilet, single vanity sink, tub/shower, with standing room.

If I rent out the last unused bedroom, I will cut my out of pocket expenses down even more (which was my goal when buying this house to stop renting) and I would end up only paying for utilities and a few hundred bucks of the mortgage.

The reason I haven't rented it out yet though is that I'm concerned it'll force one of the tenants to want to move out due to having to share a bathroom with one more adult. If I was in the tenant's shoes, I wouldn't mind because I obviously wouldn't be in the bathroom with the other person at the same time.

I've kinda gotten the vibe from the tenants that they are happy with the current situation and probably wouldn't like a 3rd person but I haven't asked them flat out. I also feel like as the homeowner/landlord, I shouldn't have to ask them for their opinion but I should still consider it.

What kind of advice does the community have?

I would at least ask them. Is there anything in your original agreement about how many housemates they could have and what the bathroom situation is? They may not mind, but I personally would be irritated if my rent stayed the same but an extra person got added into "my" personal space.  A small rent discount to the two already living there may help keep the peace. 

Originally posted by @Cassi Justiz :

I would at least ask them. Is there anything in your original agreement about how many housemates they could have and what the bathroom situation is? They may not mind, but I personally would be irritated if my rent stayed the same but an extra person got added into "my" personal space.  A small rent discount to the two already living there may help keep the peace. 

No the lease does not state how many housemates they could have. I'm assuming it would be something along the lines of "up to XX adults could possibly be sharing the common areas". I get your point on the rent part but in my defense, they are saving a ton of money by renting from me. Average rent for a 1 bedroom apartment in my city that isn't located in a high crime area (which most of the city is) ranges from $1500-2200 not including utilities. Granted they would have a whole apartment to themselves but it's either 1500-2200 or 700. I don't think I should budge on my current price.

But since I'm open to all advice...what would you consider a small discount? They currently pay $700 each. $50 reduction? Would $50 even make a difference to them? My two tenants make good money so I feel that discount wouldn't change anything.

@Kevin Phu , it sounds like you are doing well by offering them a really good price on rent. I had a roommate in a 3 bedroom house that I owned who had her own bathroom at one point. When the decision was made to add a third roommate the rent per room went from $500 to $450 since they were now sharing the space. It was still a good price for all of us, and they were happy they got some discount.