Lender · San Diego, CA · Member since 2022 · 235 posts · 94 votes
I'm planning to buy a property in Tuscon, AZ and rent it out by the room, but I live in San Diego, so I will most likely need a property manager.
However, when I talk to agents and lenders they say property managers won't manage a property that is rented out by the room. Is this true for all property managers? Any recommendations for finding one that does? I've talked to three so far and wondering if I should just keep calling more possibly.
I'm planning to buy a property in Tuscon, AZ and rent it out by the room, but I live in San Diego, so I will most likely need a property manager.
However, when I talk to agents and lenders they say property managers won't manage a property that is rented out by the room. Is this true for all property managers? Any recommendations for finding one that does? I've talked to three so far and wondering if I should just keep calling more possibly.
Thanks!
It is my belief that if you find a PM that is willing to manage rent by the room, their rates will be such that you will lose the benefit of renting by the room. It is significantly more work, so they need to charge much more.
If I am wrong on my belief and you find a pm that charges a rate that rent by room will perform much better than LTR, please let me know. I could be interested in such an arrangement.
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
3y
@Mary Ainsworth, I can't speak on behalf of the Tuscon, AZ market, however, rent-by-the-room properties are very popular in Atlanta, GA and several property managers cater to this unique investment strategy. To further note, do expect PMs to charge more for co-living properties but depending on the number of tenants, the asset will perform much better than an LTR (depending on the market). Either you haven't talked with the right agent or rent-by-the-room properties aren't that popular in your respective market yet. If you have any interest in learning more about rent-by-the-room investments in Atlanta, I'd be more than happy to chat. Feel free to shoot me an email or text to connect (contact info is listed in my bio).
I'm planning to buy a property in Tuscon, AZ and rent it out by the room, but I live in San Diego, so I will most likely need a property manager.
However, when I talk to agents and lenders they say property managers won't manage a property that is rented out by the room. Is this true for all property managers? Any recommendations for finding one that does? I've talked to three so far and wondering if I should just keep calling more possibly.
Thanks!
It is my belief that if you find a PM that is willing to manage rent by the room, their rates will be such that you will lose the benefit of renting by the room. It is significantly more work, so they need to charge much more.
If I am wrong on my belief and you find a pm that charges a rate that rent by room will perform much better than LTR, please let me know. I could be interested in such an arrangement.
@Mary Ainsworth, I can't speak on behalf of the Tuscon, AZ market, however, rent-by-the-room properties are very popular in Atlanta, GA and several property managers cater to this unique investment strategy. To further note, do expect PMs to charge more for co-living properties but depending on the number of tenants, the asset will perform much better than an LTR (depending on the market). Either you haven't talked with the right agent or rent-by-the-room properties aren't that popular in your respective market yet. If you have any interest in learning more about rent-by-the-room investments in Atlanta, I'd be more than happy to chat. Feel free to shoot me an email or text to connect (contact info is listed in my bio).
Hi Michael, thanks for letting me know! I might reach out to you soon about how that has gone for you, thanks :)
@Mary Ainsworth Save yourself the stres and mess..rent yearly to one tenant...set ip your cashflow without all that hassle...property managers do not want those headaches either..some have their own lawyers to deal with evictions etc...included. Do not re invent the wheel
Real Estate Agent · San Diego, CA · Member since 2015 · 190 posts · 77 votes
3y
@Mary Ainsworth I may have someone for you, I just asked them if they do rent by room management should hear back soon. Also if you need a good agent referral for the Tuscon market I have an excellent agent over there that can help you out whose a friend of mine.
@Mary Ainsworth I may have someone for you, I just asked them if they do rent by room management should hear back soon. Also if you need a good agent referral for the Tuscon market I have an excellent agent over there that can help you out whose a friend of mine.
Thanks Steve! Would love to hear back about what they say, appreciate asking them :)