Rent by the Room?

Question

Hey all,

As I learn about real estate investing, I am personally leaning towards focusing on the rent by the room strategy. I like the pros and cons of this strategy and believe it would work well for me personally. Are there any specific books, forums, podcasts, or any other good sources that one would recommend to continue learning about this strategy? I only have a surface level understanding and am looking at making this my focused strategy.

Thank you!

Berenger Greer · Answer

Podcast:

Coliving with padsplit

Triple win LIVE: Innovative shard housing with Atticus LeBlanc

Shared Housing: How investors can double their income

How Padsplit Works

Books:

The House Hacking Strategy by Craig Curelop

Live-in-Flip (not just house hacking but it is good to have some more ideas on monetizing your primary home)

Other than that, go to your local REI meetup and you are bound to find a padsplit oriented investor. These are the people you will truly want as they are more than likely agents that will share their experience with you while assisting you in finding a property.

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Corby Goade · Answer

Obviously you can get higher gross rents with this strategy, but it's much, much more hands on. The opposite of passive real estate investing. You'll end up dealing with intrapersonal problems on the regular and it's absolutely vital that you have an airtight lease and you are ready and willing to enforce it.

I think many people who want to try this strategy end up with really awful roommates or at least awful roommate situations and they don't handle them professionally. Eventually it will eat at your peace and the extra income isn't worth the stress. Gotta set the expectations from the start and be firm at all times.

Best of luck!

Bryce Jamison · Answer

I don't know any specific rent by the room content, but the mid term and house hacking content will most likely have a ton of overlap.

If you pursue this route be ready for all the additional guidance counselor responsibilities that come with it beyond normal landlord responsibilities. You may want to create a clear policy for common issues like not cleaning dishes, hogging the TV, hogging shower, parking, guest and parties, etc.

Mackaylee Beach · Answer

One highly recommended book is “House Hacking: Your Guide to Home Ownership and Real Estate Investing” by Craig Curelop. This book provides a comprehensive guide to renting out parts of your property, including rent-by-the-room strategies, and offers practical advice on maximizing your rental income.

For forums, BiggerPockets is a vibrant community where real estate investors share their experiences and insights. You can find discussions specifically about rent-by-the-room strategies, with plenty of tips and advice from seasoned landlords.

Podcasts such as “The Real Estate Guys” and “BiggerPockets Real Estate Podcast” often cover different investment strategies, including niche markets like rent-by-the-room. These podcasts feature interviews with experts and offer a wealth of information that can help deepen your understanding.

Additionally, joining local real estate investment groups can provide you with networking opportunities and firsthand insights from others who have implemented similar strategies in your area. Engaging with these resources can help you refine your approach and build confidence in your investment decisions.

Kerlous Tadres · Answer

I’d also suggest connecting with others in your market who are using this strategy; networking with them could provide you with real-world advice and tips.

Sandra Morrison · Answer

@Ethan Price

I started out with student rentals that I rent by the room. This is my 7th year and I still like this strategy. Due to the demand and how student rental season runs, I have 100 percent occupancy and have 6-9 months notice IF I will have a vacancy and it is always the same week of the year.

The Cincinnati and Columbus chapters of REIA (cincinnatireia.com and coreerocks.com )  both have mostly online meetings including one group that meets and has presentations on shared housing. I believe of you search online you can find Dixie Decker content on student housing and Tiffani Ray Smith on shared housing.

Send me a DM as I am always willing to answer questions and help others. You are on the right track. Good luck!

Denise Supplee · Answer

Hi @Ethan Price, It is important to understand that renting rooms can come with significant aggravation. I have done this and had issues with roommates not getting along; which ended up driving me to get out of that way of investing. Now, there are ways around it, now with the ability to automate and hire professionals. One of the great teachers in this space who I have learned a lot from is Al Williamson of Leading Landlord. I would keep an eye on posts here and read as much as you can on short term rentals. I wish you the very best!

Riley Harrison · Answer

Hey Ethan, I personally have been renting by the room for the last three years. These have been 2 primary residences and have been house hack situations.

I think a big thing to consider is the market you are in. Personally I am in a college town that also has 4 military bases nearby. This has allowed me to keep my rooms full at all times. If you are in a smaller market where young people that are okay renting rooms to save a little aren't exactly common then it may be smarter to keep it all on one lease.

With that being said, if you are looking to house hack and rent by the room while living there, I absolutely recommend it. great way to get into longterm investments for low money down and save a lot while you do it. When I buy a new property I switch from by the room to a single lease to save myself from vacancy and turnovers.

Sam McCormack · Answer

That week is the most stressful week of the year for property managers, lol

Rent by the Room?

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