House Hacking - Renters

[Toni Baca]

Hello!

I am under contract on my first home and am planning to house hack! BP has greatly inspired me to start my real estate investment career with this method. If all goes well, I will have a 4 bedroom 2 bath in Lakewood, CO. My question is regarding renters! 

Where do you find your renters? 

What methods do you use to price each room at a fair market value?

What are boxes you check before having someone sign a lease?

I'm a first time landlord and appreciate any and all tips you have! Thanks in advance!

[Rory Kinnear]

I house hack a condo and was in the same boat some years ago. Congratulations,

Don't rent to friends! You don't want to be a situation where your relationship with them gets in the way of the rent coming in on time. I would do the same due diligence as any regular tenant: income and credit check, and if your area is a competitive rental market I would check references from previous landlords.

I used a lot of roommate finder websites like craigslist, roomster, spare room, just to get a sense of prices with relationship to amenities (parking etc, shared or private bath, etc). I only charged two months up front, the first and a security deposit, but some ask for first and last and security. Also check your local laws regarding tenants v. lodgers, and make sure you lease is legally sound, getting stuck with a bad tenant is even worse when you are living with them!