One of the first questions every new live-in landlord asks is, \u201cHow much should I charge for a room?\u201d<\/p>\n\n\n\n
The answer matters more than many people realize. Price it too low and you may attract applicants who are not financially stable. Price it too high and the room may sit vacant longer than necessary.<\/p>\n\n\n\n
The right price is not just about square footage. It is about location, privacy, utilities, furnishings, household rules, and the type of housemate you want to attract.<\/p>\n\n\n\n
The Danger of Pricing Too Low<\/strong><\/p>\n\n\n\n Many new live-in landlords are tempted to price the room low because they want to fill it quickly. I understand that temptation, but pricing too low can create problems. The Danger of Pricing Too High<\/strong><\/p>\n\n\n\n On the other hand, pricing too high can cause the room to sit vacant longer than necessary. Checking Out Your Competition<\/strong><\/p>\n\n\n\n Typically, your pricing is determined by what your competition charges. Of course, that depends if you are comparing \u201capples to apples,\u201d but that is rarely the case.<\/p>\n\n\n\n It is not just their pricing you will be comparing with. I would recommend that you start with the same criteria a realtor uses when they are looking for a house for you to buy, \u201cLocation, location, location.\u201d<\/p>\n\n\n\n Is it in a \u201cgood\u201d (think \u201csafe\u201d) area<\/p>\n\n\n\n Is it convenient to grocery stores, shopping malls, etc.<\/p>\n\n\n\n Is it a short driving distance to a main highway or interstate<\/p>\n\n\n\n Room Rental Details You Will Need For Comparison<\/strong><\/p>\n\n\n\n Because you are in the room rental market these are the details you will need to know about your competition as well. A lot of this information should be listed in their ad:<\/p>\n\n\n\n Is the bedroom furnished<\/p>\n\n\n\n How many other roommates will be living there<\/p>\n\n\n\n What are the costs to move in (rent + security deposit)<\/p>\n\n\n\n Do you require a minimum rental period or is it month-to-month<\/p>\n\n\n\n Are utilities included<\/p>\n\n\n\n Does it include high-speed internet<\/p>\n\n\n\n Is it a shared or private bath<\/p>\n\n\n\n How large is the bedroom<\/p>\n\n\n\n Is there a laundry on the premise<\/p>\n\n\n\n Is there off-street parking<\/p>\n\n\n\n Do you permit smoking\/vaping<\/p>\n\n\n\n Are pets allowed<\/p>\n\n\n\n Is there central air and heating<\/p>\n\n\n\n Pictures Are Worth a Thousand Words<\/strong><\/p>\n\n\n\n Looking at the pictures in their ads will also give you a very good idea of what you are up against. If they only post a few pictures there is probably a reason for that.<\/p>\n\n\n\n Final Thoughts<\/strong><\/p>\n\n\n\n With most of this information, you should be able to make a reasonable comparison between your room and the competition. <\/p>\n","protected":false},"excerpt":{"rendered":" One of the first questions every new live-in landlord asks is, \u201cHow much should I charge for a room?\u201d The answer matters more than many people realize. Price it too low and you may attract applicants who are not financially stable. Price it too high and the room may sit vacant longer than necessary. The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-39","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/liveinlandlordguide.com\/index.php?rest_route=\/wp\/v2\/posts\/39","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/liveinlandlordguide.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/liveinlandlordguide.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/liveinlandlordguide.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/liveinlandlordguide.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39"}],"version-history":[{"count":1,"href":"https:\/\/liveinlandlordguide.com\/index.php?rest_route=\/wp\/v2\/posts\/39\/revisions"}],"predecessor-version":[{"id":40,"href":"https:\/\/liveinlandlordguide.com\/index.php?rest_route=\/wp\/v2\/posts\/39\/revisions\/40"}],"wp:attachment":[{"href":"https:\/\/liveinlandlordguide.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/liveinlandlordguide.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/liveinlandlordguide.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
A low price may attract people who are looking for the cheapest possible option rather than the best living situation. It can also leave you with less margin to cover utilities, supplies, wear and tear, and the inconvenience that comes with sharing your home.
I am not trying to be the cheapest option in town. I am trying to offer a good value to the right housemate.<\/p>\n\n\n\n
Every month a room sits empty costs you money. Sometimes a slightly lower rent with a reliable, long-term housemate is better than holding out for the highest possible rent and dealing with extended vacancies.
The goal is not to get every dollar possible. The goal is to find the price that attracts responsible applicants and keeps the room occupied.<\/p>\n\n\n\n
The real test comes after you place your ad. If you receive plenty of qualified inquiries, your price is probably in the right range. If you receive no response, the price may be too high or the ad may not be strong enough. If you receive a lot of poor-quality inquiries, the price may be too low or the ad may be attracting the wrong people.
Pricing a room is not a one-time decision. It is something you learn by watching the market, tracking responses, and adjusting as needed.<\/p>\n\n\n\n