Renting per room vs Renting the whole home as a whole

[Claudio Garcia Zuniga]

What are the pros and cons and if you have any rentals using either method, how has it been? 

[Noah Bacon]

Hi Claudio!

If you rent by room, chances are you are going to have higher cashflow than renting out the entire property as one.

You will be having more than one lease in the house, so there are a lot more moving parts that can increase your chances of vacancy and maintenance issues. I know a lot of very successful investors who rent by the room house hacking and continue to rent by room after they move out to increase their monthly cash flow. @Danielle Daly does this extremely well in Denver, CO and I'm sure has a few golden nuggets on how to mitigate a few of the cons I mentioned by being a very good operator. 

I have rented my properties by room while I live there and turned them into long term traditional rentals at move out. I definitely could've tried to maximize my monthly income by renting the property by room, but with HOA restrictions and my inability to comfortably find a property manager that manages rentals by the room were my biggest reasons to rent out the entire property under one lease.