HOW TO LEASE HOUSES BY THE ROOM: Featuring Todd Baldwin - Bigger Pockets Guest and CNBC Regular

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Links from this week's show:
○ Todd's KZbin Channel:
‪@ToddBaldwin‬
/ @toddbaldwin
○ Follow Todd on Instagram @toddjbaldwin
○ HOW TO LIVE IN A HOUSE AND NOT PAY FOR IT: An Introduction to House Hacking:
• HOW TO LIVE IN A HOUSE...
○ Read Rich Dad Poor Dad by Robert Kiyosaki
○ Subscribe to the Bigger Pockets podcasts on your podcast player of choice
FIND ME AT:
Blog: anthonydrewgary.com/
Instagram: / anthonydrewgary
LinkedIn: / anthonygary
ENGAGE:
○ Subscribe: / anthonydrewgary
○ Share this video on your social media and tag anyone who can benefit
○ Email this video to anyone who might not see it on social media
PRODUCTION GEAR ON THE CHEAP:
○ Camera - Microsoft Surface Front Facing Camera
○ Microphone - Audio-Technica Condenser USB Microphone
○ Lighting - (2) 6 foot floor lamps & an LED ring light from Amazon
○ Video Editing - Windows Movie Maker

[@ToddBaldwin]

Thanks for having me on the channel! It was a blast!

[@anthonydrewgary]

Pleasure was all mine! Now everyone, go subscribe to Todd's channel too!

[@alvarovargas4067]

This is awesome, the PNW market is def underrated.. house have still been going for well over asking, rents are very "healthy" and going up this year. Currently renting my single fam home and cashflowing 1000k... this idea of rent by the room is Solid!!

[@careya]

The cleaning service is so smart. It keeps the asset in top condition, which is a huge problem with rentals. Also the maid can report on the condition of the house to the landlord. When I was a college student, none of us owned a vacuum, so the floors were never vacuumed. Ever. Now I think of that and it absolutely cringe.

[@anthonydrewgary]

Oh the days of college housing lol. Remember them well!

[@T3kNician]

I’m doing the same thing now. He has some good ideas in terms of the designated cabinets

[@anthonydrewgary]

I think that definitely improves the user experience!

[@jahbluartstore952]

I really enjoyed this podcast I want to say thank you so very much for having him on ensuring this information

[@anthonydrewgary]

Appreciate that! Share the link on your social media accounts for your friends!

[@lindaalely4305]

Thank you for sharing this wonderful video.. I can relate to Todd..❤

[@anthonydrewgary]

Todd keeps it real!

[@rebeccagaribay8703]

Great video, really Enjoyed this podcast.

[@anthonydrewgary]

Thanks, Rebecca! Share it with your friends!

[@AirbnbRentalEmpire]

Informative stuff, keep it up! 🙂

[@anthonydrewgary]

Appreciate that! Thanks for checking out the channel!

[@atownsfilms6874]

Brilliant 😊

[@anthonydrewgary]

Appreciate you!

[@dawnmurray6945]

Amazing episode!

[@anthonydrewgary]

Thanks, Dawn! Feel free to subscribe!

[@daniellerae1716]

You need a fire sprinkler system/alarm by law between 5-8 rooms depending on the city.

[@anthonydrewgary]

This video does not get into the nuances of any specific jurisdiction. Please follow all local laws.

[@elsiemeade3857]

Thank you I will be renting out extra bedroom.

[@anthonydrewgary]

Hope it's going well!

[@ann-mariecampbell3415]

Beautiful

[@anthonydrewgary]

Appreciate that! Thanks for stopping by!

[@fabiolaarias7645]

What a great interview. I am so impressed with this young man. I have a question in regards to the neighbors/neighborhood and zoning of these properties. Is this legal to rent by the room and essentially turn a house in to a boarding house? Are there no complaints from neighbors. I imagine there are a lot of cars parked outside and lots of people coming in and out. How does that not raise any questions from neighbors? Are they ok with this? I want to do this strategy but I'm afraid of potential being "shut down" by local government laws.

[@anthonydrewgary]

Great questions! Todd occasionally checks the comments, but I can confirm in my own research that this is a location-specific question that can only be answered for wherever you're looking. In my area, it's legal and allowed, but they have specific parking requirements that usually are not met by a traditional single family house garage and driveway. Keep digging!

[@daniellerae1716]

Who is the manager at each property by law you need a live in manager at each house

[@anthonydrewgary]

I'd recommend consulting an attorney familiar with the housing laws in your specific area.

[@chronot1342]

What about the utility bills for the properties, does Todd split the utility bills equally with the tenants or some other method? How does he bill water, electric, heat when theres multiple people living in the home?

[@anthonydrewgary]

Likely either per person or per bedroom with potentially some method of adjustment if one bedroom is significantly larger.

[@fannyconteh5779]

Do you charge your tenants for rental insurance?

[@anthonydrewgary]

I won't speak for Todd, but you have to be careful about not marking up insurance if you don't have a license to sell insurance. For my rentals, I require the tenants to procure their own renters insurance and name my entity as additionally insured.

[@josephb9597]

So wait… what is the process of renting a room on the books… did I miss that part? I need step by step if possible

[@anthonydrewgary]

Todd's examples consist of taking an entire house and renting it out by the room. If you are looking to rent out a room in your house where you live as well, you'd likely be better served digging deeper into 'house hacking'.

[@Emanuelethio]

What about the local laws on rooming houses?

[@anthonydrewgary]

Local laws will always trump anyone's experiences shared on KZbin. There probably are areas of the country where this cannot be done. Check if it's possible in your area.

[@Emanuelethio]

i called my city zoning office and they said that renting rooms seperately is not allowed. unless it is airbnb. Should I search for a different city to try this method? @@anthonydrewgary

[@alysemarielippold9920]

Would you guys do a podcast on house hacking with seniors

[@anthonydrewgary]

AlyseMarie, let me see if I can find someone that specializes there. That's a very niche market. Not sure Todd participates in it, but I'm always game creating more content with him!

[@anthonydrewgary]

@toddbaldwin you have any experience here? Happy to host you again!

[@careya]

Yes, I've been thinking of doing that! I think there's a huge need there.

[@colettespencer3357]

Is it possible to rent a room out of a second home or is that not ok?

[@anthonydrewgary]

Sounds like it could be fine, but if you financed the second home as a "vacation home" or a "second home" rather than an "investment property" you may want to read through your mortgage documents to make sure.

[@colettespencer3357]

@@anthonydrewgary yes. I will read through.

[@anthonydrewgary]

@@colettespencer3357 good call! I have a few investment properties and where I have investment mortgages I know it makes no difference whether I lease the whole house at once or lease each bedroom individually.

[@milinparekh3435]

Do anyone has contract or lease agreement for rent by room?

[@anthonydrewgary]

I'd make sure you're consulting with someone local for this.

[@LifeOfKells]

This is the part I need help with. The concept is straight forward, the legalities are not. I’m trying to figure out leasing as well as a platform that allows separate payments from each tenant (not just one payment made by one person for the entire rent) and it’s been hard trying to navigate this. Seems so simple, just need to know what it looks like on the admin side of someone doing this. Good luck to you!🙏

[@steffie6510]

Bro I think you need a stage name! Three first names is kind of weird

[@anthonydrewgary]

Three names is memorable! John Wilkes Booth, Lee Harvey Oswald, John Wayne Gacy. Promise I have nothing else in common with these folks!