New to Real Estate · Schaumburg, IL · Member since 2023 · 23 posts · 18 votes
I've seen the astounding results rent by the room can have and was wondering if anybody here had any experience in this as I had a few questions regarding it. Does this strategy seem too intense for a first shot in the rental world? Also what type of markets have seemed to support this model best? How do you decide on the number of tenants able to fit in one property as I know its more complex than purely bedrooms, not speaking about legality's though. Lastly how do you decide on the rent per tenant as this model is so unique?
Rent by room has been amazing for us! Our 5 bedroom home would likley rent for ~$2k as a traditional long term rental, but we get $3750/month by renting by the room!
In our case, we are in a market with lots of young professionals and military (engineers, accountants, service members). They have mostly been young guys (in their 20's) looking to save money.
To determine what to list at, we checked the listing sites we used and looked for similar offerings (Roomies.com, Facebook Marketplace, Roomster.com, etc). We ended up setting our first room a bit higher than we expected, then just lowered the rent every week until we started getting a lot of bites. Now we know the right rate ($750/month in our city)!
Renting by the room definitely still works! I would check your local facebook group or even craigslist to see the current demand first. I did rent by the room for my first property and was able to cover a big portion of my mortgage by house-hacking.
When you did rent by the room where you renting long term or short term?
I have done both long-term and mid-term for rent by the room.
Hey @Waylon Bruce Moore! I don't personally deal with this issue with my postings, but I usually use a website called roomies.com and that is for people who are only looking for rooms, so I don't tend to get too much push back on that.
We rent by the bedroom in Roseville California and have had a great experience! We make $4,500 in rent from our 5 bedrooms. We aren't particularly close to any major college and still get steady renters. We use websites like roomies.com and Facebook marketplace to see what other people are renting their rooms out for.