14d (edited) • General discussion
Part 1 of 2 Co-living practices I use
I will attach a document of the following also. Part 2 is operations focused. IE Tools and Systems.
Jarrod’s Co-living best practices part 1. – Your mileage may vary in your market
Triple P’s (PPP) Property, Price, People
First off my only strategy is co-living. It is all I do and focus on.
1. For me the first thing is the Property and neighborhood. In my market, (Phoenix Metro), I need the following to make it work.
· No HOA
· 2000 sq ft +
· 2.5+ bath
· Parking for 60% of planned room count
· C minus through B minus neighborhoods
2. Price needs to be low enough to service the debt with desired profit. Average price in my market for C – B single family houses are $450 - $550k. To make it worth the effort I am targeting houses big enough to allow for 8 bedrooms. Mortgages range from $2500 to $3500. This means 4 – 5 bedrooms to service the debt, 5th or 6th room pays the utilities and the remaining is profit.
3. People are key with the rent by room strategy. If you have 1 bad apple it can spoil the entire bunch. When someone is interested in one of my rooms for rent, I have a conversation and checklist of questions listed below. I listen for tone, responses and the questions they ask. If someone is aggressive in nature, has odd responses or asks several questions about a certain topic counter to the rules, I know this person most likely won’t work out. After this portion is when I do the background and credit check.
My conversation with potential renter.
Are you a responsible person who can get along with other people?
Co-living doesn’t work organically. It only works if you enable it.
Shared housing is for mature responsible people typically looking to save money on housing. It only works if people get along and are clean. If you can’t get along with others or are not a clean person then shared housing will not work for you.
This shared living property can’t exist unless members pay their portion of the rent on time.
I go over the following with the potential member on the phone.
Single occupancy room – no one else besides you
No Pets
Store personal items like toiletries, in designated areas
No vaping or smoking on anywhere the property
No Loud Music which disturbs others
No kitchen appliances in bedrooms
Due to the nature of co-living, no guests allowed at any time
No outside furniture allowed in common areas
Be courteous to other housemates
Clean up after using the common area Bath, Kitchen
Clean up dishes immediately after use
Remove Laundry so others can use washer and dryer
Don't eat other people's food.
Quiet time is observed from 10PM to 8AM daily
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Part 1 of 2 Co-living practices I use
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