STR by room - guest safety & interaction

[Dennis Meints]

Hey BP team,

I have several Airbnb's that I run in Saint Paul MN and I'm looking to actually do more with a 4-plex that will house medical professionals traveling in on contracts for 30-90 day leases (technically outside of STR being >30 days). I notice a lot of these medical professionals are looking for an economic stay and would rent a room to save some money during their contract term.

My question is this: If I'm renting by the room, but I'm not present on the property - how can I manage guest interaction and set up some layers of safety checks/balances? Can I put a security camera in the common areas that would be recording and could be referred to if there was an incident (clearly marked and disclosed to guests)? Obviously, lock's on bedroom doors for privacy and some clearly defined "house rules" would be a must. What else?

Tell me the best way to remotely manage STR by room.

Thanks!

[Bruce Woodruff]

This seems sketchy to me.....one bad apple and there could be big trouble...and liability for you.....

Just my opinion though....?

[Dennis Meints]

@Bruce Woodruff That's what I'm saying! But I know people do this. How is it managed safely??

[Bruce Woodruff]

Originally posted by @Dennis Meints:

@Bruce Woodruff That's what I'm saying! But I know people do this. How is it managed safely??

I don't know but they have to be taking a big chance.....imagine a young female in a house full of young male nurses/doctors/etc.....an accident waiting to happen. And you'd be liable for sure.

The only way around that I can see is to have an on-site 'house manager'....run it like a hotel.... except you still have shared bathrooms...

Nope, I wouldn't do this for any amount of money.

Unless you do it like Paul Sandhu and rent only to male refinery workers or similar......

[Craig Anderson]

First, I would only rent to one gender.  Then, as you said, I would put locks on all bedroom doors, I did the electronic keypads so that I don't have to worry about keys.  Traveling nurses are professional and responsible for the ones that I've dealt in my experience.  I'm house hacking and only rent to traveling nurses that share a bathroom, and I have one traveling professional in the basement that is like a studio apartment.  But I believe the key is renting to one gender only especially if they are sharing common spaces and bathrooms.  

[Dennis Meints]

Thanks, @Craig Anderson! That was my feeling as well. What do you think about this being in a 4-plex and different apartments being for different sexes or do you think the entire 4-plex should stay either all male or all female? 

Probably safer to keep the entire property either all male or all female, but these are completely different apartments, so I feel like it should work having female apartments and male apartments.

Also, in a gender ambiguous/fluid world is this getting too complicated to sort out? I think clearly defining spaces by sex (biological) and not gender (considered societal) should be possible. Seems like hostels probably have a setup for this that may be useful..?

Appreciate the feedback!

[Joe Splitrock]

@Dennis Meints it is illegal to advertise or rent to one gender only. There is an exclusion to fair housing for owner occupied, so @Craig Anderson can do this while house hacking. 

You will have more problems when renting by the room. It is not a matter of if you have issues, but how to deal with the issues. Having clear house rules is important. Some of the issues to watch out for:

1. Shared space in the refrigerator or cabinets needs clear definition of who can use which space. Food "borrowing" is a common problem.

2. Cleanliness of shared spaces is a problem because everyone has different cleanliness standards. It is best to have a policy of "you make the mess, you clean it up" but also have a third party cleaning person that regularly cleans the kitchen and bathroom. At least once per week, if not twice is necessary.

3. Noise can be a problem. Travel nurses work hard and need a quiet environment. I rent a small house to travel nurses. I have had a couple two travel nurses that left a shared living arrangement to pay more at my house due to noise.

4. Parking may be a concern, especially in a cold climate that gets snow. Make sure you have one off street parking spot per person and keep them assigned.

5. Hot water can be an issue if too many adults are using the same water heaters. Make sure you have them sized for the number of people living there. Consider upgrading to larger size or installing on demand (tankless) for constant hot water.

6. Have some flexibility with your leases. If someone is paired with a bad match for a roommate, offer an easy out from the lease. Never force people to stay in a bad situation and let them know up front that you are flexible. 

7. Have security cameras in common areas and fully disclose where they are located. I would tell the tenants the video is only accessed if a problem is reported, so it is for their security. That is a nice way of saying, "no I won't sit around watching you for fun".

8. Use electronic door locks with unique codes for main entry and bedrooms. Remove old codes when someone moves out. I know many STR owners use keys, but these keys pass through 10, 20, 50 or even hundreds of peoples hands. If someone gains access and harms someone, with you failing to change code or key, it makes you liable.

Renting by the room is more profitable, but also more work and risk. Nothing wrong with doing it, but protect your guests and your reputation by managing it properly.

[Craig Anderson]

Originally posted by @Dennis Meints:

Thanks, @Craig Anderson! That was my feeling as well. What do you think about this being in a 4-plex and different apartments being for different sexes or do you think the entire 4-plex should stay either all male or all female? 

Probably safer to keep the entire property either all male or all female, but these are completely different apartments, so I feel like it should work having female apartments and male apartments.

Also, in a gender ambiguous/fluid world is this getting too complicated to sort out? I think clearly defining spaces by sex (biological) and not gender (considered societal) should be possible. Seems like hostels probably have a setup for this that may be useful..?

Appreciate the feedback!

I was thinking in the same apartments. If you have a 4-plex with 2 bed/1Bath, then the same apartment should be by biology.  Sometimes, traveling nurses travel with a friend or friends.  You can't advertise obviously for exclusions reasons.  If they are 1Bed/1Bath units, then it shouldn't matter the biology of the tenant.  

However, if you're in a good area with traveling nurses or professionals, then it should work out great for you and advertise only on Furnished Finder for traveling nurses/professionals. 

[Robert Tinker]

@Dennis Meints See if they have a friend to roommate with. I was approached by a nurse and pharmacist on Furnished Finders to rent. Just put them both on the lease

[Marian Smith]

@Dennis Meints College campuses have them, might talk to one of their leasing agents for advice. They rent quads...4 bedrooms one kitchen, living. Some quads are coed...but that may only work with private bathrooms. But maybe not. Females rent spare rooms to males through airbnb. My neighbor did but she only rented to tenants/guests with existing positive reviews. I would start out with separated genders.

[Stefanie Johnson Sykes]

@Dennis Meints check out the Real Estate Rookie Podcast #35. Some good insights there.

[Account Closed]

Originally posted by @Joe Splitrock:

@Dennis Meints it is illegal to advertise or rent to one gender only. There is an exclusion to fair housing for owner occupied, so @Craig Anderson can do this while house hacking. 

You will have more problems when renting by the room. It is not a matter of if you have issues, but how to deal with the issues. Having clear house rules is important. Some of the issues to watch out for:

1. Shared space in the refrigerator or cabinets needs clear definition of who can use which space. Food "borrowing" is a common problem.

2. Cleanliness of shared spaces is a problem because everyone has different cleanliness standards. It is best to have a policy of "you make the mess, you clean it up" but also have a third party cleaning person that regularly cleans the kitchen and bathroom. At least once per week, if not twice is necessary.

3. Noise can be a problem. Travel nurses work hard and need a quiet environment. I rent a small house to travel nurses. I have had a couple two travel nurses that left a shared living arrangement to pay more at my house due to noise.

4. Parking may be a concern, especially in a cold climate that gets snow. Make sure you have one off street parking spot per person and keep them assigned.

5. Hot water can be an issue if too many adults are using the same water heaters. Make sure you have them sized for the number of people living there. Consider upgrading to larger size or installing on demand (tankless) for constant hot water.

6. Have some flexibility with your leases. If someone is paired with a bad match for a roommate, offer an easy out from the lease. Never force people to stay in a bad situation and let them know up front that you are flexible. 

7. Have security cameras in common areas and fully disclose where they are located. I would tell the tenants the video is only accessed if a problem is reported, so it is for their security. That is a nice way of saying, "no I won't sit around watching you for fun".

8. Use electronic door locks with unique codes for main entry and bedrooms. Remove old codes when someone moves out. I know many STR owners use keys, but these keys pass through 10, 20, 50 or even hundreds of peoples hands. If someone gains access and harms someone, with you failing to change code or key, it makes you liable.

Renting by the room is more profitable, but also more work and risk. Nothing wrong with doing it, but protect your guests and your reputation by managing it properly.

 If there is a problem, a lawsuit will cost you $25,000 and two years of fighting it, easily. A lot more depending on the case. If you can clear an extra $50,000 a year to offset the risk, it might be worth it. One lawsuit will ruin your entire day. Ask Lyft:

"Lyft tallied 10 deaths and more than 4,100 reports of sexual assault – including hundreds of rapes — during rides on its ride-hailing app in a three-year period, company officials said.

The San Francisco-based company released its “Community Safety Report” Thursday detailing 4,158 reports of sexual assault during rides from 2017 through 2019, including 360 involving rape."

And, more closely related AirBNB, 

"Airbnb paid a tourist $7 million after she was allegedly raped in a Manhattan rental — a massive payout that is part of the firm’s widespread push to hide such shocking incidents, a new report claims.

The stunning sum doled out over the previously unreported alleged crime is just part of an estimated annual $50 million that the vacation company coughs up to pay guests in legal settlements and to cover damage to hosts’ homes, according to Bloomberg."

Yes, problems do happen.

[Adam Tafel]

I've done a decent amount of furnished rent-by-room. Some key takeaways :

1. Have a "rock" in the unit. Someone with some sort of authority. Could be as simple as a friend of a friend who looks out for you and is your eyes and ears. 

2. Let the tenants have a say in who moves in. Allow them to interview potential roommates after they've passed your criteria. 

3. Pay for a housekeeping service. Every week. 

Hope that's helpful! I found that renting mo/mo furnished is just as good and less headache, but room/room was an overall good experience in my book and made some nice $$.