Owning a single property does not deprive you of getting a real estate income. You can still earn by rent single room individual rooms in your house. Renting individual rooms is a great productive approach, however, there are some setbacks in inviting multiple strangers to share a common property.
Let us look at both appealing and unappealing sides of this approach:-
There are many benefits involved in renting by rooms including higher tenants response, easy replacement ability in case of conflict, and cushion of more profit than renting an apartment to a single tenant.
High Tenant Response
Renting by room increases the affordability of tenants and so does the responsiveness. It means you won’t have to invest much in finding the tenants. The majority of the tenants in the United Kingdom are students who find it hard to afford a complete apartment. These tenants would prefer a single or double room to rent out that would fit their budget. You would just need to drop us your targeted rent with some pictures and we will put up your online property ad at Home Management Company Ltd.
Easy Replace Ability
Living with tenants can create some conflicts. Some might be night owls while some are early risers. However, you won’t need to put long-term efforts into coming to agreeable terms. If you find that some of the tenants are way beyond understanding your house rules, you can ask them to leave and call the other one in Que. You have an edge of higher and easy replace ability of tenants here.
A cushion of Extra Profit
Renting to different tenants at different rates will earn more profit than renting the whole place to a single tenant. For example. You have a spacious four-bedroom apartment with a rental price of £1583. You can earn more if you sublet the apartment to three different tenants and charge each of them £500 that would collectively come out to be £2000.
Of course, there would be some setbacks here. Let’s have a bird’s view of these below:
A lot of Phone Calls
You should be prepared to handle multiple tenant queries on phone calls. Some tenants might call you for lost keys while some might ring a bell for kitchen stove issues. Tenants might not be well courteous regarding your work timings and might keep ringing bells in your most busy hours.
Some unexpected expenses may hit your pocket apart from the daily utility billings. You might not be able to divide the bills equally if you have a single utility connection or if you are charging the rent inclusive of bills. There can be some uncalled wear and tear issues and tenants might call you up for repair works.
Hustle & Bustle
If you are more of a peace lover, the hustle & bustle within your house might irritate you. Some of the tenants might be visiting the house multiple times for their needs and you might feel uncomfortable keeping a non-ending eye on the doors.
Although, getting many tenants in one house is a fruitful decision in the long run. But if you prefer to remain undisturbed, that would not be your cup of tea. It is indeed a task of multi handling and managing numerous issues of different tenants along with a profitable income in the long run.