Room Rental - 4/2.5

[Joanne Quezada]

Hello everyone! Happy new year! I'm curious to know how you guys go about advertising room rentals. my current tenant who rented out the whole room will be leaving and I think the next best step is to do room rentals. (due to the mortgage being in the market being a lot lower than what I pay.) I thought about furnished finders and  Padslipt.com. Do the legal Tenant laws of eviction still fall under a room rental? This would be my first time renting out rooms. I do currently rent out a condo, fully furnished on furnished finders, and that has gone smoothly.
Any tips, advice, etc accepted! 

[Dennis Bragg]

Hey Joanne, you’re definitely onto something with room rentals.. it can be an excellent strategy for offsetting a hefty mortgage and, in some cases, bringing in higher total rent than a single lease. I’ve been around real estate for decades, and I read in The Economist once that in lively markets like Charlotte, folks will pay a premium for a comfortable room if you’re near major employers.

A friend of mine tried something similar out in Austin a while back.. he’d inherited a 4-bedroom property and split it into individual room rentals. At first, he was anxious about having multiple tenants under one roof, but with the right house rules spelled out up front, it turned into a solid monthly cash fow for him. One key he found was mixing a welcoming atmosphere with firm guidelines.. it typically falls under standard tenant landlord laws for eviction.. so you’ll want to double-check local regulations.

You mentioned Furnished Finders and Padslipt.com.. from what I’ve heard, those can be great if you’re targeting traveling professionals or short term visitors. Sometimes, the more old-school approach like posting on local community boards can help you find reliable tenants. A well connected agent can also tap into their network.. for instance, probate attorneys might know of people seeking short-term solutions. Of course, all channels can work.. it’s just that certain ones might be better for your situatoin right now.

Since your Charlotte mortgage is higher, renting by the room can spread that burden across multiple renters. If you’re feeling uneasy about the potential headaches, you might consider a local property manager who specializes in room rentals or shared housing. So, here’s my question.. do you think you’d be more comfortable taking the DIY approach with strict guidelines, or might a property manager give you the peace of mind you need?