BIG MISTAKE HOUSE HACKERS MAKE

[Patti Robertson]

As a professional property manager in a military area, we often get hired to manager a military member's home when they get moved to a new duty station.  Very often, if the military member is single, we inherit a property with his or her roommates still in place.  Without a doubt, these are some of the hardest move outs we process.  When these roommates are also military and are moving onto a ship for a deployment, we usually get stuck with tons of unwanted items just left in the house that the owner has to pay to have removed.  Usually the homeowner has an agreement, or lease clause, that says the roommates split the utility costs.  When the number of roommates suddenly reduces by a person (or two), the prorate share inevitably goes up, costing the remaining roommates more than they had been paying.  While the roommates should have been aware that this would happen, it always seems to take them by surprise and causes drama. The biggest issue comes into play when the roommates have staggered lease dates. Eventually the lease gets down to one person, who assumes 100% of the utilities and leaves the owner with the income of only one room rent amount while we wait out the remaining lease term so we can get the property re-rented at maximum rent.

HOUSEHACKING TIPS TO SAVE YOURSELF DRAMA AND EXPENSE...

- Coordinate the lease ending dates with the date the homeowner expects to vacate the property or at least have all roommates dates expire on the dame day.

- Clarify up front what happens to the utility expense if the total number of occupants decreases.

- Make it clear that when upon leaving, all personal items, whether they are owned by the roommate, or left behind by the homeowner for the roommate's use, must be removed prior to turning back possession.

House hacking an be a great way to save money as long as you use good strategy to avoid pitfalls that can cost you time and money.