New to Real Estate · South Jersey · Member since 2023 · 15 posts · 14 votes
Hey there, I'm curious what factors others are considering when determining what price to charge for room for rent.
Please let me know if you have any insight or suggestions on how to maximize the rental income. I was thinking to include utilities and/or light bedroom furnishings (bed frame, nightstand, desk, lamp, etc) depending on how much I can charge. I've also seen some people splitting utilities evenly, I'm not opposed to this either.
I'm located in a large city that has plenty of rooms for rent and the property is pretty desirable, so I'm sure I'll find people interested but I'm unsure exactly how much to charge. Any advice would be greatly appreciated.
Great question. I rent by the room here to students, and from some Facebook research and speaking with students/tenants, you get a sense of the market pretty quickly.
Also Roomies.com allows you to see your posted competition.
@Stephen Gibson Jr Hi Stephen, I live in a pretty small area and a 1 bedroom apartment typically goes for around $1000-1100 a two bedroom for $12-1400 and a 3 bedroom for $16-1800.
I have seen people advertising furnished rooms for rent in a shared living arrangement usually advertising that there are 2-3 people sharing the space with 1 bathroom for anywhere between $6-900 per month. In my immediate area the utilities are included but as you go down by Dartmouth College they typically charge an extra $1-150 per month for utilities including the internet.
The $6-900 depends on how far out from the center of the local village the rental is and how nice the furnishings are. If it’s really very basic then $600 and if it’s done up nicely then $900. The more expensive ones always have a washer and dryer as well.
These are all no smoking no drugs and some are no drinking.
Atlanta, GA · Member since 2021 · 27 posts · 29 votes
2y
Hey Stephen,
I had the same issue when I first started renting out the extra rooms in my house. My best advice is to compare your property to the others on Zillow and be very honest about how you stack up against them. How good is your location, size, amenities, etc.? Even things like natural light, furnishing, or even listing photos! Get down to the details and keep track of what you find on a spreadsheet.
Additionally, determine how much the entire property would rent for and break down what percentage of that number would the tenant be paying for. Do they have a private bathroom, private entrance, or parking space? Do they share access to the community pool, tennis court, or dog park?
These are just some strategies to consider. Ultimately, the tenant base determines how much you should be renting the room for. If you list it too high, no one will sign the lease. Too low, and you'll be flooded with applications.
I hope this helped answer some questions. If you have any more, feel free to connect and reach out!
Great question. I rent by the room here to students, and from some Facebook research and speaking with students/tenants, you get a sense of the market pretty quickly.
Also Roomies.com allows you to see your posted competition.