Should You Rent Your Property Out Room By Room In Orange County?

If you want to rent your property in Orange County, you may have considered renting it out room by room. This can be a great option for houses near universities or in other more transient areas. In this post, we discuss the pros and cons of renting your house room by room in Orange County.

Some landlords will choose to rent out their property room by room, often occupying a bedroom in the house themselves. This is great for those who are investing in a single-family house using an FHA loan requiring them to live onsite for a while after the purchase. Renting the house out room by room can seem like a lot of work but when you have the right people living there, things can be very beneficial for you. Keep reading to learn more about the pros and cons of renting your house out room by room in Orange County!


Less Vacancy

If you are renting out the entire house and your tenant decides to leave, you are left with a vacant property and no income. If you are renting your house out room by room and your tenant moves out, you will still have people occupying the other areas. The house won’t likely ever be completely vacant which helps ensure you are pulling at least some income on a consistent basis.

More Control

When you are renting out rooms, typically the landlord/owner will live onsite as well. Your tenants are renting their room and some shelf space in the kitchen. They are usually welcome to common areas as well so long as they handle their share of the upkeep.

More Money

Let’s say you have a 5 bedroom home. You live in one room and rent the others out for $500 apiece. You’re making $2k each month. However, if you were to rent the entire house out, you may not be able to get as much. It’s similar to when investors purchase a large tract of property then sell off the lots individually. When all is said and done, you may be able to make more money this way.


Utility Discrepancies

One solution is to look at average usage rates, then charge each tenant a flat fee. However, this can come back to haunt you if your tenants surpass average usage. At the end of the day, it’s your name on the accounts.

Arguments Among Tenants

When you have multiple tenants in one property it is inevitable that tensions can arise. Be sure that your lease is specific as possible, so it can be used to mediate differences between your tenants. The rules should be laid out in black and white and everyone needs to respect each other’s space. If these rules aren’t being adhered to, you may need to ask the tenant to find somewhere else to live.

Common Area Disputes

When you have tenants renting out their rooms individually, it leaves room for disputes over the common areas. Make sure the lease lays out some ground rules regarding noise, guests, and other things that may pose a problem.

Renting a house out room by room will usually only work if you have one person who is responsible for the property in its entirety. The landlord will usually live in the house themselves so no questions of liability come into play. It is much easier for them to manage things and to understand the day to day relationships between tenants if they are living there themselves, Plus, it is a great way to quickly pay down your mortgage using other people’s money!

Ready to buy an investment home? Learn how to rent out your property fast! Contact us today for more information! 949-625-4533 


Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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