Renting Your Apartment By Room? Consider These
Renting by room is a strategy that many landlords apply to earn higher rentals every month. Here the landlord has multiple tenants who do not rent the whole property but just one room. A win-win situation for both the landlord and the tenant, this strategy is mostly followed in areas where a large population of students lives.
In such a scenario the rooms are rented out to individuals and all of them together have collective access to the common living area, the kitchen and terrace if any.
While it sounds like a financially enticing strategy, it comes with its share of challenges for the landlords, too. Think about managing not one but three or four tenants together.
MakaaniQ shares certain challenges that you might face and gives you tips that would help you make the most of renting by room:
Too many tenants
The first and the foremost challenge you will face is multiple queries coming to you the moment you put each room on rent. Popular among student or single working tenants, renting by room can call for a wide variety of tenants who would want to rent the room in your property. Get ready to screen each and every tenant with great detail. Understanding that the property will be shared by different individuals, it is important to ensure everyone's safety and also, temperament. You don't want to get calls in the middle of the night about the fight two of the tenants had.
Living in a property where the tenant only has to pay for a room is enticing for many. While the whole process begins with zeal and a positive of saving on rent, it fades away as quickly with many. Some find sharing the space uncomfortable, the other doesn't like someone else using their grocery kept in the kitchen, or some that want to have friends over for a party but can't due to other flatmates. In such a scenario, as a landlord, be ready to see frequent coming and going of tenants. And, keep a list of potential tenants ready for replacement. Also, keep hiring an agent who could help you replace a tenant quickly.
Getting phone calls from tenants will become common. Imagine four individuals who are not related to sharing a common home. Disconnect, discomfort and day-to-day arguments are bound to happen. Be prepared to resolve issues small or big. The complaints can go to extreme levels, too, like stealing, beating or others. Be ready to resolve conflicts. In conflict, situation takes your agent along.
In a property meant for two or three individuals, four are living, the property will call for maintenance. Also, the way a student would deal will the property is different from how the property will look when occupied by a family. Imagine a home occupied by a family would only use one or two air conditioners in one go, in a scenario where a property is rented by room, each room will have to have an air-conditioner and also, all of them will be working at a given time. Each amenity in the property will be used more and hence, would call for frequent maintenance. Moreover, here the landlord will have to charge a certain amount in rent for paying bills because you cannot track each of the individual's usage from a commonly generated bill. What if you are paying a higher bill than what you are taking from the tenants?