Experience renting by the room to travel Nurses

[Meagan Peters]

Hello everyone!!

I'm looking to get into the medium-term rental space and I've found a property that fits all my criteria - it's a turn-key 3 bed 1 bath (one bedroom is on the smaller side so I plan to make this more of an office space), located just a 5 minute walk to the largest hospital in the area.

I have 2 bedrooms and I was wondering if it's possible/viable to rent out my unit by the room to travel nurses? I know this works for STRs, but I feel like it may be awkward for an MTR considering the nurses will essentially live together and be roommates for several months. It would be better for cashflow, but I don't want my guests to feel uncomfortable living with someone they don' really know.

Does anyone have any experience in owning an MTR and renting it out by the room vs as a single unit? Please let me know your experience/advice on this topic or what you recommend I do :)

Thank you so much!!

Meagan

[Kelly Johnson]

I have a MTR in an area that has a lot of travel nurses and considered this in the beginning, marketed it as both available by the room and as a whole unit. Mine is a 3/1.5. My first bookings were all for the whole unit so eventually I just gave up marketing as by the room b/c it's easier on my to do whole unit. I think if you had a dedicated bathroom for each bedroom this wouldn't be a big deal but sharing a bathroom space with a stranger would be awkward to me. 

[Meagan Peters]

@Kelly Johnson

Thank you this helps a lot!

Do you mind me asking how much rent you charge/month? I know it varies a lot by location (I'm in Moncton, New Brunswick), but just out of curiosity.

Do you find having a 3 bedroom is still appealing to travel nurses, even though they will be living alone? Or it's too large?

[Kelly Johnson]

Quote from @Meagan Peters:

@Kelly Johnson

Thank you this helps a lot!

Do you mind me asking how much rent you charge/month? I know it varies a lot by location (I'm in Moncton, New Brunswick), but just out of curiosity.

Do you find having a 3 bedroom is still appealing to travel nurses, even though they will be living alone? Or it's too large?

 A 2 bedroom would definitely suffice for a nurse. I currently have some military guys in there so a 3 bedroom is perfect for them and they could care less that they are sharing a bathroom. I get $1875 and once they move out I am upping the rent a little, maybe $1950. I will look for 2 bedrooms in the future b/c I think I can get closer to a hospital if I look for something smaller. 

[Meagan Peters]

Quote from @Kelly Johnson:

Quote from @Meagan Peters:

@Kelly Johnson

Thank you this helps a lot!

Do you mind me asking how much rent you charge/month? I know it varies a lot by location (I'm in Moncton, New Brunswick), but just out of curiosity.

Do you find having a 3 bedroom is still appealing to travel nurses, even though they will be living alone? Or it's too large?

 A 2 bedroom would definitely suffice for a nurse. I currently have some military guys in there so a 3 bedroom is perfect for them and they could care less that they are sharing a bathroom. I get $1875 and once they move out I am upping the rent a little, maybe $1950. I will look for 2 bedrooms in the future b/c I think I can get closer to a hospital if I look for something smaller. 

 Nice, thanks for that

Do you mind me asking what the purchase price of the property was? I'm looking at 185k with 5% down but it seems that in factoring in all other expenses (vacancy, capEX, repairs, utilities, management, etc.) I would need closer to $3000/month to cashflow...

Any insight on your numbers would be greatly appreciated :) 

[Bonnie Low]

Are you buying a 3/1 but you currently own a 2/1? I can't tell from your initial statement if you're talking about one property or two. 2/1's can be good for travel nurses, especially for those who want their own space. Lots of people travel with their significant other and appreciate the extra bedroom to use as an office for the partner who is working from home. If you're asking about doing rent-by-room for a 3/1 you're going to have a lot of challenges. Most travelers want their own space. Those who are willing to rent a room in a shared space definitely prefer to have a private bathroom. Sharing a bathroom with 2 other strangers is usually a no-go. The travelers who are willing to do rent-by-room also pay on the lower end of the spectrum so it may be hard to get your property to cash flow. 

[Jamie Banks]

It will be hard to rent by the room with only 1 bathroom. Most travelers will want their own bathroom but you could have better luck renting to a group of travelers (who are familiar with each other). I have a 2 BR / 1 BA and I get a lot of roommates and couples. I’ve even had a small family!

[Meagan Peters]

Thanks for the advice everyone!!! I really appreciate it :) 

[Kelly Johnson]

Quote from @Meagan Peters:

Quote from @Kelly Johnson:

Quote from @Meagan Peters:

@Kelly Johnson

Thank you this helps a lot!

Do you mind me asking how much rent you charge/month? I know it varies a lot by location (I'm in Moncton, New Brunswick), but just out of curiosity.

Do you find having a 3 bedroom is still appealing to travel nurses, even though they will be living alone? Or it's too large?

 A 2 bedroom would definitely suffice for a nurse. I currently have some military guys in there so a 3 bedroom is perfect for them and they could care less that they are sharing a bathroom. I get $1875 and once they move out I am upping the rent a little, maybe $1950. I will look for 2 bedrooms in the future b/c I think I can get closer to a hospital if I look for something smaller. 

 Nice, thanks for that

Do you mind me asking what the purchase price of the property was? I'm looking at 185k with 5% down but it seems that in factoring in all other expenses (vacancy, capEX, repairs, utilities, management, etc.) I would need closer to $3000/month to cashflow...

Any insight on your numbers would be greatly appreciated :) 

 I bought for around 140k and put 60k down, it did not need any work done to it, just furnishings. Also note that at first I was nervous about vacancies b/c I marketed it and then it sat for a bit but it seems travel nurses book very close to the the time they actually will be in the area, about 2 weeks out from move in date. Maybe that has to do with when their jobs are confirmed, I'm not sure. Another avenue to explore are with any real estate agents you know as they may have clients that need a temporary space until their home is ready to close on. 

[Brandi Mathis]

Quote from @Jamie Banks:

It will be hard to rent by the room with only 1 bathroom. Most travelers will want their own bathroom but you could have better luck renting to a group of travelers (who are familiar with each other). I have a 2 BR / 1 BA and I get a lot of roommates and couples. I’ve even had a small family!

Hi Jaime,

What site didyou use to market the rooms? I am looking to rent out 2 rooms in my home. One has a shared BR and the other has an ensuite room. 

[Jamie Banks]

Quote from @Brandi Mathis:

Quote from @Jamie Banks:

It will be hard to rent by the room with only 1 bathroom. Most travelers will want their own bathroom but you could have better luck renting to a group of travelers (who are familiar with each other). I have a 2 BR / 1 BA and I get a lot of roommates and couples. I’ve even had a small family!

Hi Jaime,

What site didyou use to market the rooms? I am looking to rent out 2 rooms in my home. One has a shared BR and the other has an ensuite room. 

 I only use Furnished Finder for marketing my rooms 

[Miguel Del Mazo]

Padsplit and Roomster are sites that market rooms for rent, but they are not active in all locations. I have a friend that does Padsplit in Atlanta, and he seems to enjoy it, but I will say it's a headache managing his tenants. Both PS and Roomster were deadends for our properties.

My wife and I converted a large house into a triplex in Northeast GA with the express intent to rent by the room. All 11 bedrooms have their own bathroom, every bedroom door has an electronic lock. We even have a locked mailbox for every bedroom to ensure privacy with everyone's mail.  While we are prepared to host by the room, what we are seeing is that most residents are just taking the whole space.  We are getting more insurance housing requests and families staying nearby the hospital while a loved one is sick than we are nurses asking for singlets. Our 2/1.5s are often rented by a single traveling medical professional who just wants extra space and can afford it.

We'll see as time goes on.  Maybe I am just bad at marketing by the room. Neither FF nor AirBnB make it easy to attact a MTR by the room, though.

[KiKi Wood]

This is something that we have not tried yet, but are eager to start! From what I have researched, people tend to like renting by the room if they get a private/designated bathroom with their room. I don't think that is a dealbreaker, but something I have witnessed in the Indianapolis, IN area! I hope it goes well for you!