Do you rent by the room?

[George Shetler]

Does anyone here rent by the room and just pay the utilities yourself? It seems to me that if you lived by a college this would be the way to go as you could room for example 4 tenants together at $400 each. I have done some research into it but i'm not sure how property management would work later on and how bringing in a new tenant if 1 chooses to leave when their lease is up. Any and all information is much appreciated!!!

[Joel Calkins]

Before you consider renting by the room it's important you're not breaking any laws or regulations in your area. There are plenty of CC&Rs that can hinder your progress. 

Renting a room has similar standards to a regular SFR lease. There must be access to the room, privacy, heating, and cooling. Similar to renting a unit/house a tenant can be evicted and replaced with a lease agreement.

From a management perspective renting by the room is similar to an SFR/MFR.

Many of the expenses are tax deductable such as:

-Utilities 

-Maintenance or cleaning fees

-Repairs

-Mortgage interest

Therefore you need to carefully monitor your income and expenses to reduce your tax liability. As for bringing new tenants in that's up to you and your marketing strategies (Facebook ad, yard sign, craigslist). Renting by the room is an amazing way to dip your toes into the house hacking world just make sure to do your due diligence!

I hope this helped!