Can I House Hack when I just signed a lease?

Question

Hi everyone!

I just signed a lease back in May, 2021 which unfortunately does not align with my real estate investing strategy, house hacking. I hadn't done enough research to settle on a strategy before signing the lease and had to move to Columbus, OH for a job. Therefore, I needed a place to live which lead me to a 12 month lease.

Fast forward to now, with research conducted, house hacking is the strategy I am going to apply when delving into the industry. Unfortunately, I have not come across any thoughts or opinions for people in my position; an individual looking to house hack but has 11 more months on a lease.

My question is, how can I make house hacking work now, while still having this 11 month lease? Do I need to take a step back and wait out the remainder of the lease before I invest in real estate? Or, is there a creative method that I have not come across to house hack now?

I really don't want to sit back and wait. I want to start the journey now!

Really looking forward to hearing any thoughts or advice regarding my situation. Thank you so much!

Shawn Mcenteer · Answer

@Alexander Glantz talk with your landlord now about what you are looking to do.  I personally do not want tenants who do not want to live in my units living their.  If tenants give me notice far enough in advance and its not the dead of winter or something that is difficult for renting I am open to working with them. Most tenants never ask the question.  Be nice and upfront with landlord and see where it goes.

Conn G. · Answer

Hi @Alexander Glantz,

I was in a similar situation beginning of 2021. Ultimately, the landlord and I came to the agreement that if I were to find a renter so that there would be zero turnover, I could get out of the lease without paying in full. Finding a renter was a great experience for me because of the various showings and communications on finding the right tenant (landlord had final approval of the tenant selection). I would recommend this strategy.

Michael K Gallagher · Answer

@Alexander Glantz If your land lord is a smaller time land lord they might be open to sub leasing, but you need to approach it to make their life easier.  Explain your situation and do the leg work to find them the new tenant.  Make sure you understand their requirements, and make sure they are able to sign off on that tenant as well.  I think if you came at it with a solution you'll have a better shot at being able to sublease.  But In my mind thats the only way you'll be able to house hack before the end of your lease.

Steven Foster Wilson · Answer

Can you sublease your apartment?

Nicholas L. · Answer

@Alexander Glantz we need more information.  You want to house hack - cool.  But how far along are you in actually looking for a property?  Are you working with an agent?  Are you looking at properties?  Do you have financing lined up?  You could be months away from purchasing and moving.

Also, as others have pointed out, you can always ASK your landlord to be let out of your lease early and state that you'll cover any vacancy.  Say for example it takes you 90 days from now to find a property, purchase it, and move, and then it takes your landlord 30 days after you move out to re-rent and move a new tenant in.  Cover that 30-day period.  Everyone is whole.

Jeremiah Taylor · Answer

Most lease agreements clearly state whether or not subleasing is allowed.  Check yours out and talk to your landlord.  Maybe you can work something out.  The lease agreement should also state how a potential buyout would work to end your lease early.  Maybe you could adjust your investing strategy, get in now, and then when you're lease is over move into that property.  You could find a short term and or month to month tenant?  Just throwing ideas out there.  Good luck!

Zeke Liston · Answer

Hi Alexander, have you chatted with your landlord about the possibility of breaking the lease early? If that's not an option, would they allow you to sublease? Let me know if you'd like to chat further about this.

Jonathan Pavkov · Answer

airbnb your current place and use it as added income.

Michael Dumler · Answer

@Alexander Glantz you can potentially buy out of your lease. As others have stated, it depends on the terms. Even if you are locked in, I would still encourage you to identify your target market and property type. Once you niche down on your criteria, (purchase price, location, property layout, bed/bath count, etc.) when submitting offers, you will feel much more confident in the process. Start talking to lenders and agents now and let them know your current situation.

Charles Renn · Answer

Hi @Alexander Glantz, further insight into your lease would be helpful. Take a look at the lease and see if you can sublease it. Another option is to talk with the landlord to see how flexible they are. It really depends on the lease and your relationship with said landlord.

Best of luck!

Can I House Hack when I just signed a lease?

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