Multiple renters for one peace of property

[David T.]

Has anyone had success renting to multiple renters for a single unit? For example, You have a 4 bedroom house, you rent out each room individually and they all share the common areas. Seems the profit potential from each individual lease would yield more profits then just renting the house out as a single unit.

Sorry for the spelling error on piece.

[David Krulac]

sounds like a boarding house, which often rents by the week and is much more management intensive, though you will drastically increase your top line.

[Colleen F.]

Except for the issue of shared utilities and common space. You also need to furnish the common space too. This is viable for student populations and some other groups but I am not sure you make lots more then you would with a single unit rental. Depends totally on your market I think

[George P.]

there was a thread here on that. he had issues with people not liking each other and being messy on purpose. so many potential issues... every time i consider it, i quickly reconsider.

[Account Closed]

There are only 2 places that do this often: college houses and sober living houses.

Either way, I would advise against it if you could otherwise find a tenant that would rent the whole thing. Much less hassle and management. On the other hand, if you have 4 different tenants you may be able to eek out a bit more from them monthly in aggregate, but whether it will all even out at the end of the year once utilities and turnover are accounted for who knows.

[Sam Leon]

I have never done it but if I ever did I would make sure you have big powerful bathroom exhaust fart fans. People don't know using the bathroom after others have "dropped heat".

[David T.]

Thank you everyone for the replies.

[Al Williamson]

@David T. although I generally agree with everyone's sentiment on the topic, I want to encourage you to find solutions. Don't stop because of these challenges... figure out how to overcome them.

For example, what if you:

1 - Rented the unit to a master tenant and gave them an incentive to rent rooms for you. A profit share situation.

2 - Set up profit sharing situation with ALL roommates. Incentivize them to work together.

Everything is Figureoutable

[Lynn McGeein]

Just wanted to add that you should check your local laws as many areas do not allow boarding houses or will charge you fees like hotel taxes or require a different license whenever someone stays less than a certain time, like 30 days.

[Steve Babiak]

You might find that zoning regulations might be a problem. For example, in one town where I pursue investments, they allow a maximum of two unrelated persons in a single unit regardless of how many bedrooms; the town next to that allows up to three unrelated persons in a single unit.

[Account Closed]

I personally think that the "hassle factor" would make it not worth it. I would be surprised if everyone got along and all was well. You will be getting calls all the time with roommates complaining about each other. And, people will want to move out early to get away from someone in the house that they don't like. Lots of turnover.

The first thing that comes to mind is someone complaining that their roommate is using way too much electricity or keeps the heater too high, and everyone has to share in that cost. Sounds like a nightmare to me.

Seems like renting to one family would be much better and a lot less work.

[Elizabeth Colegrove]

@David T.

I have had success with that model when it is a personal residence and the owner/primary tenet is renting out rooms. We have done that before with a lot of sucess.

[David Krulac]

@David T.

At the first property that I bought, I did take in roommates. All were found word of mouth, many worked at the same place that I worked. Some were short time, some stayed for a year. It wasn't much work since I was already there every day, living there, but would be more work if you didn't live there and had to advertise and screen prospects. Compatibility between residents is a big issue. I've heard of situations where the owner lets the residents sit in on the prospect interviews and have a say in who is let in and who is kept out.

[David T.]

Thanks @David Krulac.

Seems it would work better if it was a personal residence. I agree with @Elizabeth C.

[Raymond B.]

@David T.,

To make the @ work, do the following:

Hold down the shift key and type @?

Look below this Window, and you will see a list of names of people that have posted in this thread.

Click on the name of the person that you want notified via an email, that you responded to them.

If you are a Colleague with anyone that has NOT posted in the thread, and you want them to see your post, hold down the shift key, type the @ and the first 4 letters of their First or Last Name.

Then look below this Window and click on that person's name.

Raymond

[David T.]

@Raymond B. Thank you for the tip!