For those that own a rooming house, what would you say are a few of the main challenges with managing the property and the people versus managing a traditional multi-apartment property? What advice would you give someone that’s beginning their learning/research into rooming houses.

Compared to apartments, I would say turnover is more frequent and often with short notice, so one must be prepared to manage that. However, turning over a room is nothing like turning over an apartment or house. It goes very quick. I have a mix of longer term residents and short termers. I try to get folks who will stay at least 3 months.

I spend about 1-2 hours a week mainly on bookkeeping and showings. I've implemented many of the pre-screening techniques I've learned here to cut down showings and to cull through applicants. I really don't want to take an application from anyone unless I'm fairly sure I want to rent to them. I find pre-screening via text very effective in cutting down the time. Once I have their name, I'm able to check the court system on on line for convictions. During the winter, pickings are slim just as they are with apartments. I'm moving to a system where tenants will either deposit their rent at the bank or remit it via mobile banking. That will save weekly trips to the collection box.

I've found a need for rooming houses for normal folks who are priced out of rentals. I think they will work well in areas where rents have spiked. Just like apartments though, you need to screen well and work to keep the units full.

I've not found issues between roomers to be much of an issue. Occasionally something crops up but here of late, no issues at all. That's a luck of the draw sort of thing. When there are issues of any sort, I deal with it immediately and fairly. I also respect the tenant's space and try not to enter their rooms unless I have to. It's important to have a set of house rules and enforce them consistently.

All in all, it's been a good experience. However, I think one's experience with a 20 room place will be different than a place half the size (I have 9 rooms). I know of someone with 20 rooms and he's there much more than I am but some of that is how he's managing the place also.

Johnny B, I know a few LLs in my area who have both apts & rooming houses. For some reason their rooming houses all tend to have between 6 & 12 rooms. I think there might be a couple of LLs in Mike's group that have them. You might give Mike a call or send him an Email about this or bring it up at the next meeting.

From what I gather it;

is much simpler to remove a roomer than it is an apt tenant

is more labor intensive for cleaning & monitoring

is ruled by different laws & regulations

has stricter health / safety regulations

attracts an entirely different type of clientele

has more police interaction

more drama then other rentals

can be very profitable for the right owner

One long time LL that I know has been transitioning his 3 & 4 units from apts to some sort of halfway houses. If I understood him correctly he's generating 2-3 times as much net income from these compared to his regular rooming houses.

The thing that's always kept me from trying for a rooming house or halfway house kind of situation is the local ordinances (schedule of permitted uses restricts it to certain zonings [which tend to be my smaller/older houses]; parking ordinances; gotta collect hotel/motel tax if they stay less than 30 days) combined with a good dose of I-don't-want-the-neighbors-to-hate-me.

So-- for those of you who have dealt with it in residential zoning, how do you keep the neighbors from hating you, and how do you avoid people who have trouble with opioids?

Johnny:

I have three kitchens and four bathrooms for nine rooms (one room has its own bathroom, so three baths are shared). All kitchens have stoves and refrigerators. Tenants get their own dorm refrigerators and microwaves. I supply all room furnishings. I like the metal platform beds that Walmart sells. I cover the mattress and simply wash or replace the cover between tenants as needed.

I focus on C class tenants and most of them transition into apartments once their stay ends. I don't deal with felons, alcoholics or addicts thus I have almost none of the issues generally associated with rooming houses. The thing that makes this effective in my area is the spike in apartment rent.

GKarl, it's one of the things I deal with in sfh, and I think it would be magnified with a rooming house situation. A lot of known druggies don't actually have anything on their criminal record that I can point to and say, "Aha! They're bad news." And that makes it harder for me to tell the difference between "poor" and "undesirable."

I can catch a lot of the worst by running them through the local grapevine, but if my source is (a) kin to them, or (b) not currently involved in the local drug scene, I don't always get accurate information.

My rooming house has 2 separate floors. Each has 4 bedrooms(4 people) , 1 bath, 1 kitchen, and laundry. I put a table and chairs in the kitchen, but have been renting the rooms unfurnished. However, I am getting ready to furnish some, and see if they rent better. I have had trouble filling all the rooms. I screen out violent / drug related convictions, (incl. restraining order), and recent (< 1 year) evictions.

As GKarl said, turnover is high, so there is near constant screening. I have found that I need to operate old-school and talk to people on the phone for screening. Working on alternate method, but not yet.

So far, turnovers have been very easy - rooms left in good shape / pretty clean, even the ones I kicked out. Roomers do all cleaning - so far so good.

I am glad I have several security cameras - outside and inside common areas, like pointing at the entrance/rent box. I do have a locking dropbox on each floor, for rent, since most of mine buy money orders from the nearby 7-11. However, 1 takes it to my credit union, and I'm going to try to transition to some sort of electronic payment when I get it figured out - for those that get there $ on a direct express tip card, or any who may have a bank account.

Mine was zoned as a "rooming house" when I bought it - different from roommates in a residential neighborhood. Very important to know you local and state laws.

In VA, I can do a self-help eviction in the first 90 days of consecutive residency - after that, have to go thru eviction. But really, I just non-renew the weekly rental term.

One really big challenge / frustration I have is my paycheck job. I am unable to network with senior services, veterans center, and other potential sources of more stable roomers, due to working when they are open.

Also, the "class" of tenant is such that I rarely go unarmed - just the truth, folks. They are bigger & stronger than me (everyone is), have lots of street smarts, and I assume everyone carries some sort of weapon along with a self-protective attitude/frame of mind. Always try to keep a reactionary distance, and don't turn my back.

"Also, the "class" of tenant is such that I rarely go unarmed - just the truth, folks. They are bigger & stronger than me (everyone is), have lots of street smarts, and I assume everyone carries some sort of weapon along with a self-protective attitude/frame of mind. Always try to keep a reactionary distance, and don't turn my back."

No, I'm just smaller and weaker than most, which is easy to see if someone is "sizing me up". No point in taking unnecessary risks these days.

Yes, I am well trained and capable of handling a pistol. I carry one every day for my paycheck job and am re-qualified regularly, in addition to personal practice.

I don't put it out on display first time I meet an applicant, (unless they give me the willies and my shirt "accidentally" rides up) ; ) My roomers have all figured out I carry, and are fine with it - they are used to people having weapons of some kind. I have heard comments like "she don't PLAY! / respect" so I think it has the desired effect. Actually, most didn't know I carried until summer - and by then they knew me to be reasonable, fair & level-headed, and responsive to problems.

NOBODY should just go out and buy a gun without real training, and think that makes you safer - if it ends up in the other person's hands, you are much worse off!