The answer? Yes, landlords can rent out rooms easier now due to the high demand for room renting compared to house renting. Foremostly, room renting is comparatively more affordable than house renting. This reason alone makes your property a lot more appealing to a large demographic – students and young working adults!
These are your potential tenants that prefer room renting over house renting. Due to room renting’s affordability, tenants can save up and pay off their student debts or even for a future home of their own. While you, the landlord, can enjoy continuous rental income. Let’s dive into why you should consider room renting over house renting!
Advantages of Room Renting Compared to House Renting
For real estate investors looking to make money from their property, consider room renting instead of house renting to help increase your returns. With room renting, you gain multiple tenants and so, multiple rent incomes. For example, you are charging a family RM7000 a month for a 5-bedroom semi-D, when you could charge RM1500 for each room, which would yield RM7500.
However, the downside is that more tenants equal higher expenses and potential noise, damage, and complaints. Furthermore, a high tenant turnover rate makes the long process of listing the property, screening tenants, and signing the lease a hassle to deal with.
On the other hand, you can enjoy the benefits of having 100% occupancy. You are less likely to experience a complete vacancy with room renting. In contrast, you will experience it with house renting during the turnover period. If a tenant renting a room terminates their tenancy, you can at least rely on the other tenants’ rent. Furthermore, the period of searching for tenants for a whole house is significantly longer because it’s harder to find a tenant to commit to an entire house instead of a room.
On the other hand, house renting does have its perks. For example, you will have a more stable rental income since you won’t have to worry about a high tenant turnover rate. Moreover, you will have less work because you only have one tenant instead of, let’s say, five! Consequently, you won’t need to deal with extra maintenance or complaints.
Nevertheless, the choice is up to you and dependent on the property value and location as well. If your area consists of students and young working adults, you might want to consider room renting. However, if your area mainly consists of families, then we recommend house renting. Either way, know that no matter the type of property, Rumah-i has your back!
Rumah-i is a house rental management company, and our job is to make renting easy for you. With the Rumah-i App, you can list house and room rentals and specify its’ features. Furthermore, you can easily communicate with potential tenants with the in-app chat function.
Let us help manage your property. Our services range from researching potential tenants to collecting rent. Not to mention, we also offer housekeeping and laundry services. So, your property will always be well-maintained and, most importantly, clean! This is because we understand that cleanliness and hygiene is imperative, especially with the current pandemic.