SFH House Hacking Property Management

Austin, Texas
House Hacking
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SFH House Hacking Property Management

Caden Ferguson
Member since 2024 · 1 post · 1 vote

Hello everyone,

I just went under contract on my first real estate investment property in Austin, Texas. I am currently seeking a property manager for this property. My plan for this house is to house hack by living in the detached apartment and then individually rent out the bedrooms in the main house. I have been having problems finding property management companies that do both "by the room" rentals and/or owner occupied properties. Has anyone else experienced this issue or have any recommendations?

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Rick Albert
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
11mo

I suggest you self manage. The property management model can be expensive (monthly percentage fee, plus cost of finding a tenant, plus maintenance upcharges, etc.). Plus it would be good for you to get the experience so when it does become a full on rental, you already know the ins and outs.

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  • Moe Sidd
    Investor · Toledo-MetroDetroit-Dallas · Member since 2022 · 122 posts · 71 votes
    11mo

    @Caden Ferguson, have you looked into PadSplit by chance? It's pretty popular in the rent by the room model I think 

    1Reply
  • Dan KennedyBusiness Member
    Austin · Member since 2020 · 2 posts · 2 votes
    11mo
    Quote from @Caden Ferguson:

    Hello everyone,

    I just went under contract on my first real estate investment property in Austin, Texas. I am currently seeking a property manager for this property. My plan for this house is to house hack by living in the detached apartment and then individually rent out the bedrooms in the main house. I have been having problems finding property management companies that do both "by the room" rentals and/or owner occupied properties. Has anyone else experienced this issue or have any recommendations?

    I'm a property manager with around 400 houses under management so know the industry pretty well. The challenge is property managers don't specialize in renting by the room, and it's not worth the small amount they would get on management fee. Plus it's a real pain to manage individual people who don't know each other and deal with the drama that can come with it. - we also manage 5 padsplits for owners. Padsplit, similar to Airbnb, can help find someone, handle the financials and help with the paperwork and any issues that may arise. They do charge a 10 day leasing fee and 8% management fee though so it's a little pricey. But sounds like padsplit might be a good option. Good luck and congrats on the new home! Dan Kennedy PMI Austin.

    2Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    11mo

    Have you considered self management?

    [email protected]
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    1Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    11mo

    @Caden Ferguson 

    You should not need property manager to manage this.

    Just remember the IRS sees it as part personal and part rental. You can usually write off part of your mortgage interest, property taxes, insurance, utilities, and upkeep based on how much of the place you rent out. If you rent out three rooms, you can claim the main house portion for rental deductions.

    Keep good records for each room such as rent collected, cleaning, small repairs, and furnishings. When you sell, you’ll pay taxes on the rental part, but the section you live in might still qualify for the home sale exclusion if you’ve lived there for two years.

    This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

    [email protected]941-914-7779
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    1Reply
  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    11mo

    I suggest you self manage. The property management model can be expensive (monthly percentage fee, plus cost of finding a tenant, plus maintenance upcharges, etc.). Plus it would be good for you to get the experience so when it does become a full on rental, you already know the ins and outs.

    3Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    11mo

    Manage it yourself dude, you'll learn a ton and save a lot of money!

    [email protected]512-888-9122
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    2Reply
    • Carlos Marin
      Realtor · Austin, TX · Member since 2024 · 21 posts · 15 votes
      8mo
      Quote from @Jordan Moorhead:

      Manage it yourself dude, you'll learn a ton and save a lot of money!


      I would do this! Also, you can get the advantage of the STR loophole with your 2026 taxes. If you don't know about it, there are lots of videos on YouTube.

      1Reply
  • Joseph Guzzardi Jr
    Rental Property Investor · Member since 2019 · 411 posts · 148 votes
    8mo
    Quote from @Caden Ferguson:

    Hello everyone,

    I just went under contract on my first real estate investment property in Austin, Texas. I am currently seeking a property manager for this property. My plan for this house is to house hack by living in the detached apartment and then individually rent out the bedrooms in the main house. I have been having problems finding property management companies that do both "by the room" rentals and/or owner occupied properties. Has anyone else experienced this issue or have any recommendations?


     Save your money/profit and manage it yourself. There are plenty of tools to do so, including rent collection, finance mgt etc.

    1Reply
  • Tre DeBragaPro Member
    Real Estate Agent · Worcester, MA · Member since 2022 · 107 posts · 48 votes
    8mo

    As many others have said. Consider self managing. Save money and learn. You will already be on site so why not? As well as tax benefits. 

    0Reply
  • Blake Anthony CarterBusiness Member
    Real Estate Agent · Austin, TX · Member since 2020 · 101 posts · 47 votes
    8mo

    Definitely manage yourself but recommend using Padsplit as a tool to help you with leasing and operations. We used to have a coliving management company and can say with confidence that going the padsplit route is your best option especially if owner occupied.

    0Reply
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