hey guys, i'm thinking of subleasing a couple of rooms in the house i'm in. the house, built in 1911, is in a quiet area near downtown san antonio and is a nice little place w/hardwood floors, washer dryer, lots of trees, etc. it has three bedrooms and one bathroom (obviously, all three of us would have to share the bathroom), plus a studio i'm planning to convert into a workout room. all yard work would be my responsibility. i'm thinking about targeting some of the university students (trinity university and incarnate word), since they are near the area. houses in my neighborhood usually rent for around $900-1000 per month, depending on size, # bedrooms, etc. obviously, i'd want for the roommates to help split not only the rent, but the utilities, cable, etc. what do you all think is a fair price to ask? and is it customary to request a deposit in this situation? if so, how much? thanks!
$450 - 500 per month plus 1/3 utilities. Pretty reasonable to me as long as the place was clean and kept up well.
How hot are the co-eds that will be leasing the rooms? Will you be able to participate in the topless pillowfights? Will you accept "sweat equity" payments. You need to further clarify the parameters for these very complicated calculations.
LOL! i've had a few female roomies before, and the one thing i have learned is to keep it strictly business. never piss at your own front door. i tested that theory once, and it was an absolute disaster. nope, won't do that again! then again, topless pillowfights sounds verrrrrrrry good!
Drewdog, that's around what i was thinking. the thing is, to get a good looking apt. in san antonio, you're paying ~$600 a month and up. that's for a one bedroom. there's cheapies for less, but you get what you pay for. the place is clean and wellkept, since i'm somewhat of a neat freak. not the white glove type, but just real heavy towards organization & immediately cleaning up after myself. oh, and what about deposits?
V- Yeah I think that range sound pretty solid. Dont dip below $400 unless of course you get pretty desperate.... Wouldnt think it would get that bad though. Deposit is typically 1/2 of first months rent or between $200 - $250. You will have to go get some kind of form from the state comptroller or something like that for a lease.... not sure exactly. But I would bet you would want to learn about evictions and stuff if it came to that. Make sure you find someone who is solid and has good references (I guess you prob. know all of this since you have done this before )
Drewdog, thanks. oh, and i've never leased (or rented) a place out before. in college, i hated staying in the dorms, so i'd always hook up with a couple of people and rent an apartment. here's the strange part about this place: i don't own it. i'm renting it right now with a female roommate. but, i'm looking to get rid of her and bring in 2 new roommates (hence the "piss at your own front door" comment in my earlier post). my strategy is that i can charge them a fair rent while saving up enough of my own money to buy the house. it's not on the market (thank god, no competition), but i've talked extensively with the owner, and he's agreed to sell it to me if i were ever interested. he also gave me permission to rent out rooms if i ever wanted to do so. he even went as far as to offer to carry the note. the way i figure it, i can *comfortably* save up enough money for the deposit with 2 years of renting out the rooms.
You'll have to take into account that a lot of people won't want to split one bathroom with total strangers. A lot of people can split rent with people on a nice place and pay utilities AND have their own bathroom for $400/month. I'd say $350.
true. that's also why i'm looking at the college students. they're used to sharing a bathroom with a stranger. as for the $350...nope. sure, you could get into an apt with someone for that amount, and i'm positive that many people will do that. but that's not the person i'm looking for. i'm looking for someone (actually 2 someones ) that wants the advantages (privacy, yard, hardwood, extra space) of a house. i think those advantages are worth an extra C-note a month...at least for me it is. plus, if that person ever left, i'd end up paying more than what i am right now! and you know i'm not having that!!
Do a little market research and see what comparable rooms are renting for in your area. A $. 50 newspaper should do it. I would ask for the first and last months rent on move in. This helps when non-payment issues arise. He doesn't pay on time and you say, fine your on the clock, be out in 30 days meanwhile you are not out any rent. Also he has to notify you of his intent to move to get his last months rent applied so you have plenty of time to get a new tennant. If someone, even a college student can't come up with 2 mos. rent they are probably not a credit risk you want to take. You don't need to charge for utilities, that just adds confusion . You have been there a year and you know what they cost. Build an average of the year round amount in to the rent you decide to charge. You'll probably make a little extra in the winter and pay a little more in the summer so put the extra in your savings account so you don't come up short and have to pay extra out your paycheck. A little research on-line will probably give you a basic lease agreement to fill in the blanks on. Here's one for $12 : http://www.humanresourcesupply.com/rentallease-texas.html#checkout By the way , right now is an excellent time to finance a home purchase. Rates are low but that makes houses more expensive. If your owner is offering to 'tote the note' be sure the interest rate he charges is comparable to a mortgage company something like 5.5%. It is a very good deal for him because 5.5% is pretty hard to earn on a safe investment right now and should you default on your mortgage he gets his house right back. You absolutely need a lawyer to represent you in an owner financed transaction. You can use the same lawyer for both parties but there are specific legal documents that have to be recorded with the county to protect your rights to the home. Good Luck, Jeep
Do a little market research and see what comparable rooms are renting for in your area. A $. 50 newspaper should do it. I would ask for the first and last months rent on move in. This helps when non-payment issues arise. He doesn't pay on time and you say, fine your on the clock, be out in 30 days meanwhile you are not out any rent. Also he has to notify you of his intent to move to get his last months rent applied so you have plenty of time to get a new tennant. If someone, even a college student can't come up with 2 mos. rent they are probably not a credit risk you want to take. You don't need to charge for utilities, that just adds confusion . You have been there a year and you know what they cost. Build an average of the year round amount in to the rent you decide to charge. You'll probably make a little extra in the winter and pay a little more in the summer so put the extra in your savings account so you don't come up short and have to pay extra out of your paycheck. A little research on-line will probably give you a basic lease agreement to fill in the blanks on. Here's one for $12 : http://www.humanresourcesupply.com/rentallease-texas.html#checkout By the way , right now is an excellent time to finance a home purchase. InterestRates are low and evey mortgage company wants to loan you money.However, this tends to make houses a little more expensive. If your owner is offering to 'tote the note' be sure the interest rate he charges is comparable to a mortgage company something like 5.5%. It is a very good deal for him because 5.5% is pretty hard to earn on a safe investment right now and should you default on your mortgage he gets his house right back. You absolutely need a lawyer to represent you in an owner financed transaction. You can use the same lawyer for both parties but there are specific legal documents that have to be recorded with the county to protect your rights to the home. Good Luck, Jeep
Gene Peterson, thank you very much. i checked the local paper and there weren't any rooms for rent in my neighborhood as of now. but i'll keep checking over the next few months. also, that's a very good idea about having a flat rate (all bills paid). first and last may not be so bad, either. UTweezer, what city are you in? i ask because i know that is cheap rent in houston, for sure. houses and rent, here, are considerably less expensive, though. no kidding, UTweezer, you can buy some historic homes (75 years and older) here for less than 100K. there's no way you touch that home in houston for less than 200K. sure, they may need a little work (small foundation repairs, new central AC unit, paint job), but they are well worth the investment.
You should also talk to a tax advisor about the arrangement. My parents have a single rent house that used to belong to my Uncle, as well as the house he lives in (long story). Many of the expenses related to upkeep and improvement can be written off as business expenses. For example, if you decided to paint the house or buy a new air conditioning unit, you could potentially deduct 2/3 of the expenses from your taxes. This could also include, say, adding a garage or addition (with extra bathrooms). Living there may alter the situation, but it could still be to your advantage. It might be worth consulting a real estate agent though. There are also liability issues to consider, including whether to require renters insurance or change the homeowner's policy.
