Group homes licensing for rent by the room

[Shai Flax]

Hey y'all,

After doing long-term renting, we are looking to get into mid-term by doing rent by the room.

I've heard that there is a limit for unrelated people living in one house, which can be as low as 3 people (which is very low and doesn't make sense ROI-wise).

We thought that the solution could be us being licensed for a group home which by that will give us way more wiggle room.

Does anybody here do that? Know if this process will solve that problem. I couldn't figure it out when I was researching about that topic.

Thanks in advance!

[Shannon Strickland]

As Colleen F. said, “Unrelated person ordinances are area specific.” For example, my county permits 3 unrelated, but bordering counties permit 4. A wise use of money was to pay a local real estate attorney $150 to review my options and boarding house agreement. A handful of compliance problems were flagged and adjusted, but I would have never known I was outside the law without proper advice. Try to always find out the truth for yourself from the source instead of hearsay.

It sounds like you might be converting a long-term rental (LTR) into a medium-term rental (MTR). If so, after furnishing, ideally you will make more renting to just 3 individuals as MTR than 1 LTR lease.

I highly recommend paying a local real estate attorney for either an initial consultation or 1 hour. Everything should be clear for you then. By doing so, you'll be able to make an informed decision that will benefit you in the long run.