Room by Room to College Students

[Christopher McConnell]

Hi! I am in the middle of purchasing a 3/2 SFH in Tennessee about a half mile from a university. I want to try to increase rental income by renting room by room.

I was just wondering if anyone has had any experience with this.

If so, does if it makes other things more difficult like utilities, lawn care, common areas?

Lastly, has anyone worked directly with the university housing office to market the property or get on an approved list of off campus options?

Thanks in advance!

-Chris

[Adrienne Green]

Hi @Christopher McConnell!  Where in TN is your purchase?  Typically when something is rented by the room instead of as a whole house, there are more costs for the landlord.  While this can vary regionally, typically in a "rental by the room" scenario the landlord handles utilities and lawn care.  I also recommend the landlord provide periodic cleaning service for the common areas for a few reasons- happier tenants who stay longer, eyes on the property, and preserving the condition of the house.  If something's clean, people treat it better.

Of course this is a case by case basis, but I've had clients who find the increased costs associated with renting by the room outweigh the increased income.  It depends on the region's rental rates.