Do any of you Rent out by the Room?

[Eddie Starr]

Years ago, when I was in college, I rented a room in a house. They focused on renting "to college students and young professionals" (being a USN Vet, I would probably add service members, reservists, and guardsmen).

Are there any B&H investors, that do this? If so, do you manage it yourself? I've talked to a few different property management companies, and none want to bother. Just wondering if others have, and how they've gone about it. Is it better in certain cities/state/markets?

[Ralph Poirier]

There's a big group of us on BP that do student renting.  I currently own three properties that I manage myself.  I like this style for the following reasons:

1) I require a parental guarantee - no payment issues

2) I sign one year leases - I start inquiring to my students in February to see if they will renew (100% renewal for those not graduating so far) which keeps my vacancy rate at 0.

3) I require a group of students to rent the house.  So if one moves out they have to find someone to fill the room or they don't get to renew their lease.

4) Recession proof - maybe not proof but have you ever heard anyone say their kids aren't going to college because there's a recession?

5) I have cleaners clean the house every two weeks which gets me eyes into the house to see how they are treating my house. 

6) By renting out by the room I can charge more than renting the house.  It's more work (collecting three payments instead of one) but it's not that bad with systems like Venmo, etc..

7) Students prefer houses over apartments (Vandalism issues, fire alarms at 2am, rowdy neighbors).  Living in a house gives them a sense of freedom.  

The key is having boots on the ground.  You'll hear an underlying theme on BP which talks about building a strong team.

Good luck!