How to divide rent on a house hack

[Lauren Cromie]

Hi Everyone!

I am a new investor, and I'm about to purchase my very first property!! I intend to start house hacking right away, and I have a question about the Bigger Pockets Rent calculator. I am currently looking at a property that has a calculated rent of $1,600/month, and I would have 2 tenants living with me. Should I divide the full rent between my tenants? Or should I absorb 1/3 of the $1,600? Or something in between? Thank you in advance for your insight!

[Leo R.]

I agree with @Caleb Brown--you should base the rent for each tenant on the room they're renting (in most houses, the bedrooms are not identical, and some rooms are more desirable than others).  Square footage is one factor, but also consider things like: does one room have more windows, higher quality flooring, better paint, a larger closet, a better location within the house, etc.?  

Where did you get the $1,600 number from? (was it based on market analysis focused specifically on single rooms in a shared house?).  If not, then you'll want to re-analyze the market focusing solely on single rooms within a shared house (which is what you're offering).

Good luck out there!