OfflineI've been thinking about getting into cashflow a.k.a renting properties, then a thought crossed my mind. Which is better...to rent out each room of a house or to rent out the house as a whole?
Where I live, you can easily get $400-$500 a month for renting a room. So, I guess if you have a 4BR house, then that's a possible $1600-$2000 per month in rent.
You can also get $750-$1000 a month in rent where I live from a house that you bought for less than $50,000.
For anyone who's doing either, which is a better option?
__________________
Great strategy! I like the idea. Fantastic way to increase your cash flow on a potential rental properties. Continued success...........Lubertha
"GOD IS STILL IN CHARGE, HE IS THE AIR WE BREATHE"
that's good question,for me i whould consider these question how strong is the room renting in your area?, do you have house or condo?, check your expenses,i lived in waikiki for example its more easy to find new tenant on waikiki and down town area..for me if you going to rent a four bed rooms house its more secured to rentout the whole house atleast you get a contract with the renter not like if you going to rent it by room,they can move anytime and its not secured with contract, well i dont know how the room renting in your area works.but if you have a four bed room house that you living it and you had extra bed room that could be extra cash in your pocket...this is just my opinion, still ask for the expert opinion.i apologized for my grammar.
em
Derric, I think that renting rooms would be a great source of income, but maybe you should appoint someone as an overseer. Just a thought.
Good thinking on ways to increase your cash flow, like emzky said, just be careful with the contracts. That could be a tricky one if you don't live there. Let us know which way you decide to go and best of luck to you!
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
I live in the Dartmouth College area here in the northeast and rooms as opposed to the entire house are rented with great success. I'm not sure of your demographics but in college towns or military towns, places of that nature, I think you may do very well.
Ken
-You Cannot Plough A Field By Turning It Over In Your Mind-
If it's set up for roommate plan then there shouldn't be any problems. Your contract will be just like, if they were renting the whole house, the tenant is obligated to fulfill the terms of the contract or risk losing their security deposit and any other damages if you take them to small claims court. I find Students or bachelors are more opt to rent rooms vs someone with small child or couple. If they wish to move out early then they must notify you, find someone who's qualified to take over their rent and they must have your final approval.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
In renting rooms, would you be able to put them on a 6-month or 1-year lease?
whether you want 6 month or 1 year lease. I would recommend for Students a 6 month lease, ordinary people 1 year lease.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.