Would you Rent by the room with a 4 bedroom 1 bath unit?

Question

Hello - I am looking to purchase a multifamily property that is a 3 bed /1 bath and 4 bed /1 bath. We are planning on furnishing the property and marketing it to traveling professionals. I am concerned we will run into some logistic issues with only have 1 bathroom in each unit.

Does anyone have experience renting the units by the room with 1 bath? Any suggestions? Is this a deal you would peruse if the numbers worked?

Joe Clifford · Answer

All - Thank you for the feedback ! We ended up passing on the property due to location, amount of work and $ that would have been needed to make our furnished mid-term rental strategy attract the right tenants.

Everyone's perspective was very helpful! Based on everyone's feedback we are going to refine our search for smaller properties or properties that provide an opportunity to create a more 'separate' living space.

On to the next one !

Colleen F. · Answer

@Joe Clifford   I have a 2/1  now with a bathroom hog in it.  And the second roomer can't wait for them to leave.    It just takes one.  That said it depends on your setup and market in your area.  Is there a demand, What is the price point?  Is the bathroom one room. You need to look at the competition.  People will live there it is just a question of the price you can command. You aren't going to be top of market.

If you go for adding a bathroom consider splitting the shower from toilet sink. This makes it usable by more than one person at a time. Make sure anything below grade is installed by a qualified professional and they will need a to add a special pump.

Bonnie Low · Answer

I don't care for the rent by room strategy anyway (just personal preference) but I absolutely would not do a 3/1 or a 4/1. Guests do not want to have to share bathrooms with strangers and those who are willing to are not going to want to pay much for your space. Either of these is a tough configuration - particularly the 4/1. Do you have any space to add a bathroom? Lots of midwest properties come with a finished basement that usually has laundry hookups, making it fairly easy to add another bathroom. Just something to consider.

Jamie Banks · Answer

No, I wouldn’t rent a 4/1 by the room. It’ll be hard to find guests who want to share a bathroom and it will likely be a headache to manage and clean. I’ve only offered private rooms with private bathrooms in the MTR space which has worked well.

A 4/1 would probably only work for students who are used to the dorm style multiple rooms to a bathroom set up

Didier Bizimungu · Answer

I rent out a couple of 3/1s by the room on a long-term basis, and that's worked well thus far.

My recommendation, not knowing your market, would be to try it out and see how it goes.

If getting tenants seems to be an issue, proceed with a half/full-bath addition.

What I wouldn't recommend is taking the advice of others on this, especially those with no rent-by-the-room experience.

I've found that many investors confuse their needs/wants/preferences with what the market needs/wants are.

Mathew Pezon · Answer

Hello Joe,

Renting a property as a rooming house can be a good strategy in some instances. It's difficult to give you an answer without knowing what market you are investing in. I suggest you look at the rooming house regulations located in the Zoning Ordinance for your city. A google search of "City X zoning ordinance rooming house" is a good start. Minimum bathrooms per X tenants will likely be listed.

Additionally, you want to ensure that a rooming house is a valid use of the building according to the zone that the property is in. If you need further assistance, I'd recommend calling your city directly and consulting with the zoning officer on duty.

If the numbers work, there's no regulations, and the demand is there, you should go for it.

Allen Duan · Answer

I would leave that as a whole home rental. It depends on the market and tenant avatar, but I don't think unrelated individuals would want to share a bathroom with 3 others.

Malkia Ra · Answer

"...I am concerned we will run into some logistic issues with only have 1 bathroom in each unit."  Agreed.A single-bathroom dwelling is harder to rent, in general... renting to three or four individuals?  Yikes.