I am 18 graduating in 1 month. Moving into an apartment in the city. By whatever weird circumstance and cool nepotism/ kindness from step mom (landlord). I am going to be in a very nice 3 bed/1 bath apartment This summer. Paying a rent below what normal rent on 1 bedroom would be. She had all her single person apartments full and had the big one that had been open for a while. So I am gonna be paying $400/month for a 3/1 in a good neighborhood which is almost unfathomable. My question… Why shouldn’t I live completely rent-free and even make some money off of this. I mean after all… When opportunity knocks. So how should I go about pulling a bit of money out of this? I’m a learning REI but never tried to learn anything about the rental side.
My considerations thus far would be.
#1. Rent 1 room out to someone for as much as I reasonably can. I mean this apartment normally rents for almost $1000/month. It’s in a good neighborhood within walking distance of downtown grand rapids and colleges. Renting the 1 room for maybe $450/month. Anyway I can get more money up front by asking for a security deposit. Can I advertise to get it and charge application fees. etc.
I mean I’ve got a 3/1 to myself to do with what I please at $400/month. L/L will have no problem with me subleting as long as the tenants are approved by her.
This is a standard situation for kids your age. But very few of your piers have what it takes to look at it from your point of view. Congrats!
Yes, I would suggest renting out the other room and get a taste of landlording. It will be a bit different than when you don’t live in the same property as your future tenants as it is with the roommate situation you are talking about here.
I do suggest…very strongly… that you do not ‘brag’ about your wise investment move. If your ‘renter’ finds out you are only paying $400 and they are paying $450…they’ll do the math and it could cause problems. Knowing you don’t ‘need’ the money to pay the rent they might be more inclined to only pay you $200… the true half of what you are paying.
It sounds like you are on the right track though. I might not charge an app fee, unless you plan on spending money checking them out…bg checks, credit check, ect. But then the fee should cover the expense of what you are checking out, and not a profit. Don’t forget to have them sign a lease either. Make sure it is state approved to avoid problems should you need to take them to court.
Anyone else have any suggestions for him?
GooD LucK! :beer
Thanks sir,
Yeah I definitely foresaw problems if people were to know I am only paying $400/month. The roommate is most likely going to be someone i don’t know. Will do some advertising once I move in etc. So if the question is brought up I don’t have to disclose anything so no worries there.