Rent by the room much?

Question

Andrew S. · Answer

Make sure you don’t run afoul of city codes.  Raleigh does not allow more than 4 unrelated individuals to occupy a house, unless it is approved as a boarding house.  I understand that the variance needed to designate as boarding house can be difficult to get, depending on the part of town (I followed one application just down the road from you (Boylan Hights) where the neighbors mounted a ton of opposition.  Eventually, it did get approved, but it took maybe a year or more.

Will Gaston · Answer

@Uriah D. I've met a guy in Charlotte that does this model pretty successfully. He rents by the room and the tenants pay by the week. Most are young professionals that are in town for a contract type job but others have stayed for over two years.

I believe he furnishes each room with a bed, dresser, and a nice wall mounted TV. Also each room has a keyed lock. I believe he had a cleaning company come once a week to do some light cleaning in the common area. I think this model can work really well for the young professional crowd that can afford to pay higher rents. I'd err on the side of making it nicer and charging more. Likely less drama from the type that can afford it.

Stephen Robertson · Answer

Just to chime in here... I've been searching for information on this topic (hence me finding and commenting) because I'm considering this with a house I own that apparently has some "undesirable neighbors" that make the property a lot less desirable to most tenants. My town (a college town) limits houses to no more than 2 unrelated persons in a home (only enforced if there is an issue or complaint). The house directly next door (not the "undesirables") is a 5 bedroom house rented to students. My house is a 3/1; rather than have to deal with the possible risk of 3 unrelated persons, I think a viable solution would be to rent 2 rooms out on a lease and the third (huge master BR), as an airbnb. The two students living in the house would of course be disclosed, but air bnb's around here (from what I've heard), get their biggest amounts of business around graduation ceremonies, holiday's, and college football games. Since the city defines someone "living there" as more than 4 consecutive days (checked by running license plates at the property), I should be in the clear. I just wanted to offer this as a possible solution to anyone wanting to rent more than the city allows for an unrelated person limit. I'm also thinking rather than have multiple tenants fight over garage parking, put in a coin operated pool table and maybe even a few vending machines and turn it into a day room type common area... I'd love some feedback on that last idea if I'm not hijacking the thread by asking.

Andrew S. · Answer

Yes, it's quite serious - I'm familiar with that article on Chapel Hill (I have a rental near UNC) - it is an extreme case, obviously, but there are a lot of occupancy violations going on, so the City tries to make some examples out of the worst offenders.

Eric Weireter · Answer

Hey @Uriah D., based on @Andrew S. 's comment above I was curious myself. So I did a quick google of "residential occupancy limits Raleigh" and learned about Raleigh's definition of the Rooming Business.

Then I also came across this article from 2014 where  Chapel Hill finds 12 tenants in house, fines landlord $60k. Crazy!

BG Malamut Jr · Answer

I'll check out the book. Thanks!

What about finishing the ceiling? My wife said yes, two 24 yo"s said no [their dad is a contractor]. So... Ugh.

Hmm okay. I've got desks for the rooms, so didn't think they'd need another space. But thanks for that!

thanks, again. Truly!

Zeona McIntyre · Answer

Hey @BG Malamut Jr,

First things first, I recommend you pick up Craig Curelop's book published by BP called The Househacking Strategy. Its literally a step-by-step guide to what you are trying to do.

To answer your questions:

1. I wouldn't bother, game tables are something common in vacation rentals used for short stays, when you have people actually living in the home, they would probably prefer the space and a dining table. A lot of folks like to work from a dining table so it gives them that space.

2. The gym is a great idea and would be a draw for folks, especially traveling nurses.

BG Malamut Jr · Answer

Hey I'm new to BP and looking for some help in this topic.

I'm buying my first "rent by the room" property. Given the area, the highest demand is traveling nurses, then Maybe temp IT folks and Wake Forest Univ is just over 3 miles away.2 questions on what I should do with the the space i have in this large 3Br. 3.5 ba townhouse: 1. At it has an eat in kitchen, I was thinking of using the "dining room" area as a space for 1 or 2 [used]: foosball, bumper pool, "table top" [4 ft x 2 ft] pool or small air hockey. Which one[s]? I could get 2 used for the same price as a dining table and chairs [which I don't see being used]2. In the basement [no windows area] how about a "mini home gym" with a [used] elliptical, mirrors on walls, gym mats, kettle balls, pull up bar, etc? If so, the ceiling isn't finished, so insulation, pipes, wires, etc are exposed. Do I "need"to finish the ceiling for my target age group [20-30] to find it okay enough to use?Minus ceiling cost, total to fit both spaces would be under $600. I think it'd certainly set me apart and allow for higher rent rate!Thanks, VERY MUCH for your input!

Andrew S. · Answer

It’s probably the zoning department downtown.  I don’t have the specific links handy but if you google “occupancy limits Raleigh” you probably get what you need.  Or one of our local PM folks might chime in?  @Dawn Brenengen  @Tiffany Alexy

Rent by the room much?

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