Effective Rent By The Room Strategies

[Dan Mackin]

As it becomes more prominent in the US it seems there should be a discussion on renting by the room. Yes, I'm aware that this has been done forever with student rentals, but I'm specifically talking about post-college. What I would like to know from those who are currently involved with this method are the following:

Pros/Cons

Extra expenses

Cashflow difference between rooms or entire unit

Potential headaches

Navigating tenant disagreements

Anything else...

This method fits within the house hacking guidelines and I'm working on a full document outlaying the differences between renting rooms and entire units to adults.

[Al Williamson]

I agree with @Roy N. targeting is the key. It's best to stay with one affinity group. For example Ph.Ds will live nicely with other Ph.Ds, nursing students will group nicely with other nursing students and so on.

@Dan Mackin

Flat rate, all you can eat is the way to go. I like to split average expenses so its: 

(Average Monthly Expense * 1.30) / (number of rooms )

So if cable is $100 and I have three room, then each pays $65.

My goal is to give them everything they want at a rate that's cheaper than if they bought it themselves AND make a profit.

So load the place up with luxuries.

Also put digital locks on every bedroom door.