Exploring House Hacking in Orlando: Seeking Advice on Renting Out Rooms to Offset Mor

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Exploring House Hacking in Orlando: Seeking Advice on Renting Out Rooms to Offset Mor

Seth Baumgartner
Rental Property Investor · Florida State, FL · Member since 2022 · 66 posts · 30 votes

Hey everyone,

I'm in the process of considering purchasing a house in Orlando, Florida, with the strategy of house hacking in mind. The idea is to offset my mortgage payments by renting out individual rooms. The property I'm looking at is also conveniently located near a college campus, which I believe could be an attractive factor for potential renters.

I’m reaching out to this community for insights and advice on a few key points:

1. Realistic Rent Expectations: For those familiar with the Orlando area, especially near college campuses, what are realistic rent amounts I could charge for individual rooms? I’m looking to make this venture both appealing to tenants and financially viable for myself.

2. Demand and Seasonality: How does the demand for room rentals fluctuate throughout the year, particularly with the college academic calendar in mind? Are there times of the year when it's easier or harder to find tenants?

3. Legal and Management Tips: Any advice on navigating the legalities of renting out rooms in Orlando? Additionally, how should I prepare for the landlord role in terms of property management, tenant screening, and maintaining a good relationship with my tenants?

4. Investment Viability: I’m also interested in hearing about your experiences or observations on house hacking in this area as an investment strategy. Is this a commonly successful approach given the local real estate and rental market dynamics?

I appreciate any feedback, experiences, or insights you can share. My goal is to make a well-informed decision that not only helps with my mortgage but also provides quality housing options for locals or students in the area.

Thanks in advance for your help!

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  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 894 votes
    2y

    @Seth Baumgartner Not an expert on this, but a couple ways to approach this. Depending on what campus you are near will make a huge difference and even more so, how close. Most of my investors that buy around colleges like to stay within 2 miles as transportation to campus is easy/cheap/walkable/bikeable. I'm guessing its not UCF or you likely would have mentioned that. Compare its 70,000 student body to that of Stetson or Rollins with a few thousand and the needs are far less. I would look up Dixie Decker, she is an expert at this.

    1. Rents will vary depending on that factor as well as room size, how many bathrooms (are 3 bedrooms sharing one common bathroom and you are in the primary bedroom with private bath? Are you providing cable and high speed internet, security system, cleaning service etc? If you want to maximize rents and attract quality tenants (the parents), make sure the they see value and saftey for their kids and they will pay.  But I typically see $700-900 per room.

    2. As far as seasonality, you should be using a 1 year lease, regardless of how long they stay. That way they can leave their stuff there while classes are not in and avoid moving in and out and you not collecting rent for months at a time. 

    3. If you don't want to do all of the management stuff, you could look into Padsplit, its a model that I don't really care for, but might work for your situation.

    4. House hacking is pretty universal, you make your money when you buy, so as long as you buy right, it can work anywhere. Your lifestyle has to be able to withstand this however, relationships dont' often fair well with this model. Rental demand in Orlando is still high and as long as Florida remains in demand, you should be fine as long as you provide a safe, reasonable home in an area that has a need for it. 

    Best of luck

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  • Adrian Lammersdorf-SciollBusiness Member
    Realtor · FL · Member since 2020 · 234 posts · 101 votes
    2y

    Hi Seth,

    I've done househacking in Orlando, and I hope this can help you out with your start.  I think it's the best way to get started when you don't have a ton of money to spare, and you are still learning.

    1. look up on facebook marketplace what other people are offering their rooms for, that will help you get an idea of what you can charge.  I've heard Zillow even will show you what rooms are renting out for as well.

    2. I believe this is the same for everyone no matter what you are doing especially here in Florida, but the peak season for renting is March-July.  I would recommend making friends with people in your work place, or school, and letting them know you are buying a home with extra rooms you want to rent.  It's a great and free way to find a good tenant that you will enjoy having around.

    3. You can find on google different leases for a room that you can make and have your roommate sign.  Make sure all the terms are clearly communicated because I guarantee you they will try to take advantage of you at some point somehow.  It's just part of human nature, especially with college kids.  As far as screening rentprep is a good one to use.  Again I'm going to reiterate this: communication needs to be very clear, and you will be the one responsible for it.  I am saying this from experience because I had someone that was a tenant/friend and made everything clear, and even let them do more than what was agreed and still had problems.  Also another good tactic is offering to let them use supplies like toilet paper, paper towels, and whatnot.  People will definitely feel more inclined to stay and be nice if you give them free stuff.

    4. I think this is the best way to get started for a beginner, and now is definitely a great time if you have the funds for it.  I rented my rooms out for a 3/2 I lived in, in the Orlando area, and now have it as a rental.  I now own a nice duplex as well I found off market through networking, and fixed up as well that I live in and rent the other side, and my cost of living is now cheaper than it's ever been in my 13 years as a renter/homeowner.  This is a good time to find deals, just know that it takes time and a lot of analysis.  I bought my first home paying 20k over asking price with a 10k appraisal gap, but lucked out with a good interest rate (3.9%) this was in 2022.  The duplex I bought about 6 months ago (in 2023 as the market cooled off) came in under my appraisal, which means I had free equity, and I paid less than 60k of what he had it listed for on the market a few months prior.  That being said this is definitely not the time to be paying full price, make sure you are buying less than asking, and getting a good deal.  It will set you up well when you refinance at a lower rate.


    Feel free to reach out if you have any other questions.  Take as much action as you can towards it.  I got about $4200 back on my taxes last year because of depreciation, and it felt great!  This is definitely one of the best ways to build wealth, I wish I had put more into this rather than stocks at an earlier age.  I do also recommend finding a mentor that can help you through the purchase, and also read the as is contract for buying a home, and look up sellers disclosures and get familiar with them if you're purchasing on the market.  Anything built before the 70s will most likely have issues with plumbing or electrical, and roofs last about 20 years, and should be permitted most the time on county websites.  Hope this helps!

    [email protected]561-305-2404
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