Investor · San Diego, CA · Member since 2015 · 67 posts · 23 votes
I have a room in a house listed for $700, but I've had a couple inquire about it. I know rent should be more for a couple than individual, but haven't rented a single room to a couple before, so I wasn't sure what to tell them. I picked $875 pretty much out of the air and they said that would be fine, but thinking about it now an additional $175/mo for another person seems low. What is your normal "markup" for an additional person, if you rent to couples at all? For reference, the house is in San Diego.
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
8y
You need to think about your reason for charging extra for second person. Is it because of higher utility use? Extra wear-and-tear on the property?
I have some small units that are single-occupant. I charge a 25% increase for a second person. The utility cost probably increases about 10% so the rest covers the extra wear-and-tear risk and profit.
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
8y
You need to think about your reason for charging extra for second person. Is it because of higher utility use? Extra wear-and-tear on the property?
I have some small units that are single-occupant. I charge a 25% increase for a second person. The utility cost probably increases about 10% so the rest covers the extra wear-and-tear risk and profit.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
8y
Not sure if this is a personal home or a place with multiple rooms for rent considering utility costs and inconvenience 25 % seems right for utilities, common area use etc. I would consider the dynamics changes a couple brings. If you have a house with multiple rooms for rent also consider what double occupancy in each room would mean. Many ads local to me state no couples so check market availabilty in your area when you set the price.
I have a room in a house listed for $700, but I've had a couple inquire about it. I know rent should be more for a couple than individual, but haven't rented a single room to a couple before, so I wasn't sure what to tell them. I picked $875 pretty much out of the air and they said that would be fine, but thinking about it now an additional $175/mo for another person seems low. What is your normal "markup" for an additional person, if you rent to couples at all? For reference, the house is in San Diego.
Thanks!
A few things come to mind;
Space is space, as long as the number of occupants is within code, the amount charged should stay the same. If your charging a single person vs a couple another price, that can been seen as discrimination, so tread carefully.
We allow 2 ppl per br maximum, however, if after lease signing they add more occupants, thus modifying the lease, we charge $100 more in rent per month per person, and application fees, and we have the finally approval. This keeps people from adding unqualified tenants/guest, and the price forces them not to ignore the rule as it would get really expensive if they moved to many friends into the property.
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
8y
I second @Levi T. my view of CA law (I am not a lawyer) is that you cannot restrict occupancy on a unit to less than 2*(number of bedrooms) + 1. That means a tenant can legally put 3 people in a 1 BR unit. I am less clear on whether that permits addition charges for occupancy but I tend to believe it does not.
We do not charge per occupancy level but prohibit occupancy in excess of what CA law mandates.
I recommend you get advice from an expert on Ca tenant laws.
Investor · San Diego, CA · Member since 2015 · 67 posts · 23 votes
8y
To be clear, since it sounds like it makes a difference, the couple wouldn't be renting out the whole house, they're renting out 1 room of 3. So the increased rent would be for the wear and inconvenience of having another person in the house. This is also my personal residence, and I rent out my spares rooms. But either way, this is more for future reference since the couple in question no-showed me anyway. :/
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
8y
@Kendra Mattson it is a Room for rent you can set an occupancy limit. you can charge more as they are using more utilities. On top of that it is your personal residence so read your state law on what you are exempt from in an owner occupied rental. I would not take a couple if you have 2 rooms for rent do you want 2 couples? If one room occupant leaves can the other pay.? Shared space is different from an apartment rental. You want to be smart on who you let live with you. Less stress for you.
It would be better for you to restrict th erental to singe persons. Trying to accommodate additional individules will end up being a mistake. Reject all applicants that are not from single persins.