Renting Rooms: Income

How Much to Charge

Find Roommates

Why Rent Rooms?

Collecting Rent

Tenant Evictions

How Much to Charge for a Room

Naturally you want to know how much to charge for a room. But the first question is actually whether you can rent rooms at all. There are towns that are too small or just have too many cheap apartments available. You may not get any response at all to an advertisement to rent a room in these places, no matter what the rent. So how do you determine this?

To begin with, usually towns with high rent have a high demand for rooms. Because of the high rents, people are looking for cheaper alternatives to apartments. Also because of the high rents, single people share apartments with others.

In these cases, most roommates inevitably have problems with splitting bills. They have problems with what to do if one is late with their share of the rent. They have problems with who made which phone calls. They have problems with who gets to make or break the rules, and more. When these renters see a room for rent in a nice home, with everything from local calls to cable TV included in the rent, they love the idea.

If you aren't sure about the demand in your own town, and you already own your home, you can just try renting a room. All you risk to find out is the cost of an advertisement or two. In fact, if you already have an idea what you can rent a room for, you can skip the rest of this chapter and go right to chapter three for advice on how to find renters.

Determining Demand for Room Rentals

If you are thinking about moving to a new town, or you are going to buy your first home where you are, it is a different case. At least it is different if you plan to rent rooms to make your purchase more affordable. Knowing whether there is demand for rooms to rent and how much you can charge is crucial in this case. How do you determine this?

Start with the local paper. If you can't get one from where you are, look for one online. Just enter "newspaper" and the name of the town in any search engine. If there just isn't a local paper, the town is probably too small to consistently find renters in.

What you want to look for is a category in the classified advertising section of the paper for room rentals. It might be labeled "Rooms For Rent," "Room Rentals," or just "Rooms." Some papers even have sub-categories for "Furnished Rooms," and "Unfurnished Rooms." Any category at all for rooms is a good sign, indicating that renting rooms is a regular occurrence in that town.

With or without a separate category, are there any ads in Sunday's paper for rooms for rent? This too is a good sign, and gives you your first clue as to how much rooms rent for. Take notes on how much the rent is, what it includes, where the house is located, and anything else that seems relevant.

If over the course of a week or so, you can put together notes on at least six or seven room rentals, you will have some idea about how much you can charge. Some examples of ads and how to determine how much to charge for a room can be found on the folowing page:

Determining Room Rental Rates

How to Rent Rooms Homepage - How Much to Charge for a Room