Should I Offer Rent By Room Property Management?

[Phillip Austin]

Within the last 2 months, I've been approached by numerous investors asking if I do rent by room which I currently do not. As an experienced PM, I'm intimately aware of how challenging "normal" property management can be which is why I've always turned down rent by room opportunities. The headache of playing peacemaker between 3-5 unrelated tenants doesn't sound worth the premium management fee; not to mention rent by room generally brings in lower quality tenants which require significant more management.

With that said, higher rates are pushing investors toward rent by room simply because it's the only option for cash flow (at least in Denver) which is why I have so many folks reaching out.

If you currently have rent by room investments or perhaps you're a PM currently offering rent by room, I'd love to hear your feedback and any advice you may have. 

What are your biggest pain points? Best practices for security deposit deductions (damages)? Most productive leasing platforms? What you're willing to pay a PM in monthly management? Tips and tricks?

Any and all feedback is greatly appreciated!