House Hacking for a Cause
Many things changed during and since the pandemic first began. If you’re like me, I still keep on hand more toilet paper than I used to. Go figure! My suitcase contents now contain Covid rapid tests, a small pharmacy, facemasks and hand sanitizer. However, the most unexpected change occurred when we opened our home to traveling nurses, one of the most essential workers during the pandemic.
Our first nurse tenant was from Florida. We quickly learned how long and difficult the shifts were, especially during the peak outbreaks. As a young nurse her dedication to serving during uncertain times was admirable. Daily we learned of the covid situation in our surrounding community from the front lines. Once her contract ended she made her way to the next hospital to aid the relief efforts. Two weeks later, we brought on our next nurse tenant and we have not looked back.
House Hacking
Over two years now, we’ve enjoyed the new relationships and a steady side income. Apparently, we are “house hacking”, generating an income from a room in our home. Traditionally, hacking meant buying a multifamily property, living in one unit and renting out the other which paid the owner’s mortgage while the owner built equity in maintaining the property.
House Hacking = Cashflow
The main benefit of house hacking is cashflow from the extra income generated. We use the income to invest in our retirement. Other ways to maximize the extra cash include paying down your mortgage, funding a new business venture or building up your child’s college fund. Really, there are so many positive ways to use the money.
What started by helping nurses during the pandemic has turned into a unique opportunity. We plan to continue with these midterm contracts to traveling health professionals. They are safe and reliable tenants who only stay a few weeks or a little longer if their health facility contract is extended. Altogether, it is a win-win situation and solution for us.
Thinking of “house-hacking” yourself? Here are some tips:
Evaluate your space. Some things to consider: do you have a separate entrance for the tenant, a private bathroom, is there a hookup for a TV, can you fit at least a double bed or larger in the room?
Create an inviting environment. New bedding, fresh paint and a few pillows will welcome quality tenants searching for a clean and relaxing place after a long day of work.
Photograph the room and shared living spaces. Make sure to include a exterior picture of your home.
Determine the amount you want to charge for the room rental. Search on Furnished Finder to get an idea of similar rents in your area.
Post your room for rent on Furnished Finder or similar site targeting professionals coming to your area.
Screen your prospective tenants online using Keycheck or SmartMove.
Require all prospective tenants to fill out your application form. Have the tenant provide proof of their employment and the contract length.
Keep organized records of tenant applications, rents collected and related expenses. Good record keeping makes tax time a breeze.
One last thought…
House hacking could be a solution for some homeowners struggling to make their mortgage payments due to life situations. Here at Avivo Home Partners we seek to find solutions for homeowners. Even if house hacking isn’t for you, we may have other options that will work better for your situation. We hope you will work with us to help you find the path forward!
