Renting Rooms Vs Units for Multifamily Apartment Buildings

[Bellman Tumasang]

Wouldn’t it be more profitable if for each apartment unit in an apartment building I rent them out by rooms rather than units. If so why doesn’t everyone do this.

For example let’s say I had a 4 bedroom unit in an apartment building renting for $2k a month. Wouldn’t it be better if I just rent out each room for $800 a month and make $3200 a month for the 4 rooms. 

Also as commercial real estate value is heavily focused on NOI renting by rooms could boost NOI and could force more appreciation and allow investors to perhaps refinance quicker and at higher valuations allowing them to do the BRRRR strategy to buy more buildings and repeat building wealth.