SF - renting by room

[Brian Wiggins]

It sounds like renting by the room is a great strategy for single family, but what happens when you have to move out? Correct me if I’m wrong, as I’m new to real estate and the Denver market, but I believe most surrounding areas allow up to 5 unrelated people to live in a single family house. Does that mean you are still able to rent by the room if you move out, or do you have to be living there as your primary for that to be a viable strategy?

[Drew Fein]

In Colorado, each city and/or county has its own occupancy limits. Some impose greater restrictions than others; for example, Denver only allows two unrelated persons to reside in a house. When identifying properties, you should speak with an attorney regarding occupancy limits for that particular property, as well as to determine if there are restrictions imposed by an HOA, etc. Some people do choose to continue to rent by the bedroom once they move out; however, there may be limitations on this as well (e.g., based on the loan type).

*NOT LEGAL ADVICE*