Renting out The Second Bedroom

Lzangvuong on 09/12/2016 - 10:14

Hi all,

I am not sure if this would fit into other thread, if it is please feel free to remove.

I am currently renting a two bedroom plus study (more like a single bedroom) apartment from my closed friend who gave me a big discount on the rent ($60 per week discount). I would like to rent out my second bedroom.

I am at a loss at how much rent to charge. The place was given to me at $400 a week (about $60 under market rate). I will have the big master bedroom (about 4*4.5), the study and the car space, the balcony can also be accessed from my bedroom (which i don't mind people using it, but they have to walk through my bedroom).

I do not use the living room much at all, so whoever rents the second bedroom (3.2*3.8) will pretty much have the living room at their disposal since i spend almost all my time at home in the study/bedroom, unless I occasionally play some xbox games in the living room.

For my location (St Kilda East) and the size of the bedroom most places are asking for at least $200-220. Since I have pretty much 1.5 rooms plus the car space, I feel like i should pay at least 60% of the rent, leaving the other person at 40%. However since the place was rent to me at such cheap rate, I would end up charging the other person something like $160 which is very cheap for my area.

Should I just ignore the discount my friend gave me since it was meant for me and charge the other person market rate (but i feel bad because they would end up at 50/50 rent and use much less space). Or Should I ask my friend for an increase in rent (this is very non ozbargain :D)?

Home & Garden

Comments

  • Slippery Fish on 09/12/2016 - 10:19
    +2

    Split the dif.

    460*.4 is 184 your rent is 160 meet halfway and use the tenner to buy flour and share items.

    • ihbh on 09/12/2016 - 17:11
      +1

      … or rice

  • k-rokfm on 09/12/2016 - 10:20
    +5

    Charge the other person market rate or just below. If you say its 200-220 then perhaps charge 180-200? TBH id probably be charging 200 cause the discount is for you being a friend not for the other person.

    Does your friend know that you will be looking for a roommate as well?

    • zangvuong on 09/12/2016 - 10:21
      +7

      I will ask for her permission first (she knew that i would eventually), and will ask if she would like a small increase in rent. Does it sound fair?

      • cloudy on 09/12/2016 - 10:31
        +1

        Yea that sound reasonable

      • dasher86 on 09/12/2016 - 10:31
        +7

        charge the person market rate.
        And pass the difference in what you call a fair split back to your friend for giving you the discount.

  • Trying2SaveABuck on 09/12/2016 - 10:31
    +3

    Charge the market rate but i'd say you'd be asking for too much if you went for more then 35-40% because it sounds like you have the master bedroom and car park.

    The living room would be considered 'common area' id say $161-184 would probably be fair(ish) from the information you have given

    • Slippery Fish on 09/12/2016 - 11:21

      Thats why I landed at 170 ;)

    • zangvuong on 09/12/2016 - 11:29
      +1

      Yeah i think anywhere between 170-180 would be a fair amount too. I used to share with a guy who sublet the place (4 bedrooms) out to people and in the end we figured out that he paid a minimal amount (or made profit) on the rent. Needless to say nobody stays friend with him after ( but who can blame him for us being too stupid to check :D).

  • Trying2SaveABuck on 09/12/2016 - 10:35
    +1

    Just wanted to add you're paying market value rent according to real estate.com
    https://www.realestate.com.au/neighbourhoods/st%20kilda%20ea…

    2-bedroom units in St Kilda east are being rented at for $400 on average so your friend isnt giving you any discount (obviously there are a few other factors that influence rent price but it sounds like a pretty standard apartment imo)

    So you'd probably be looking at charging $140-160

    • zangvuong on 09/12/2016 - 10:38
      +1

      It is two bedroom plus study (the study is the size of a small single bedroom) so it is like 3 bedrooms :). The upstairs apartment which has the same layout rented out at $460 3 months ago.

      • Trying2SaveABuck on 09/12/2016 - 10:39
        +1

        Oh that is a different story - could you turn the study into a bedroom? rent out 2 rooms one at say 160 and another at 120?

        meaning you would be only 120 a week out of pocket

        • zangvuong on 09/12/2016 - 10:40
          +1

          I rather keep it as my study/office area to be honest since i work from home at least 1 day a week and it is my favourite room in the house (my man cave :D).

        • Trying2SaveABuck on 09/12/2016 - 10:42
          +2

          @zangvuong:

          thats fair enough then i'd say dont feel bad bout charging whats fair i'd be going for $180-$190

      • dasher86 on 12/12/2016 - 08:50

        the study is 'private' thus not a common area.

  • scrambledeggs on 09/12/2016 - 10:58
    +15

    Charge as much as you possibly can for it. Are you mad? Don't tell whoever you rent it to what the total cost of the unit is, it's none of their business. If someone is willing to pay x dollars for the space they get, then charge them x dollars. Where does "feeling bad" come into it?

    • zangvuong on 09/12/2016 - 11:35
      +1

      I understand where you are coming from, but for me sharing a house is not just about saving money, it is also about being able to call your housemate a friend. And I don't overcharge friend (or anyone for that matter). May be that is why I am still renting :D.

      • BigTed on 09/12/2016 - 13:33
        +6

        I'd say that this approach runs some real risks.
        It is great if your housemate is also a mate - but mates and finances seldom mix well.

      • Diji1 on 09/12/2016 - 14:36

        it is also about being able to call your housemate a friend.

        This is headed for disaster IMO.

      • railspider on 09/12/2016 - 15:23
        +2

        You're getting some heat for this comment, but I agree 100%

        I'd much rather spend an extra $10-$20 a week if it meant I got to share a house with someone I got along with. In some ways you're paying for comfort in your own home - worth it!

        If you try and extort every last dollar of value out of your new roommate, you'll likely end up with less options, and potentially a less than desirable room mate.

      • poboy on 10/12/2016 - 12:27
        +1

        You are the one that has the lease too. So you have all the responsibility. Your friend can leave you in the lurch. This risk should be factored into the price.

  • Colombian on 09/12/2016 - 12:09

    I did sublet a room years ago when my wife and I were International students. The room was a single one with no carpark space. I charged market rate. It is good to make money that way without taking advantage of people.

  • bion83 on 09/12/2016 - 13:48
    +1

    Whatever you decide add $15-$25 p/w and advertise it as "includes all bills" then you don't have to worry about splitting bills when they come

    • Diji1 on 09/12/2016 - 14:34

      And the prospective tenant can leave heaters running all the time and not pay for it yay!

      • JIMB0 on 09/12/2016 - 17:20

        And run a bitcoin miner.

  • cupcake on 09/12/2016 - 20:38
    +1

    You should get the other person to pay half the market rent. That is, $230 per week.

    The common areas and common rooms are to be shared. Kitchen, laundry, living room.

    Since you are getting the bigger master room plus the study, you can just say you will cover costs for toilet paper and cleaning supplies like dishwashing liquid, sponges, laundry powder, spray n wipe and chux wipes. Too easy. A lot of people ask for an extra $20 a week for shared cleaning supplies anyway. My co-worker irons her flatmate's shirts every week for him and he covers the cleaning supplies.

  • backpaqer on 10/12/2016 - 11:49
    +2

    If you charge under market rate then you'll start trawling the bottom end of the tenant market and you might not like what you find…maybe charge a higher rate and then surprise them with a discount or more inclusions later.

    • zangvuong on 11/12/2016 - 11:21

      Yeah this was one of my concerns as well.

      I consider myself lucky that I do not need a tenant in the place to meet the monthly rent (been in current place for quite awhile by myself, it is just a big waste to leave the second room empty 95% of the time).

      So I can take my time with screening tenants. I have seen people rushing through the screening process just to get someone in asap and regardless of who is the better prospective tenant and some didn't end well at all.

  • backpaqer on 10/12/2016 - 11:53

    …or, you could furnish the second bedroom and rent it out on airbnb and make $120 a night.

    • backpaqer on 10/12/2016 - 11:57

      actually…just checked airbnb…the average nightly private room rental on airbnb is $112 for St Kilda…varies depending where the apartment is and facilities of course

    • zangvuong on 11/12/2016 - 11:25

      After living for three months with almost no sleep due to the above apartment renting their place out to Airbnb (constant people coming and going at any time in the night, party, loud music at 3 AM etc.). I would never do this to anyone in my block.

      Those bloody assholes flooded my apartment twice with their bloody washing machine (the floorboard did a "wonderful" job at letting water running down), the second time it was so bad they had to repaint half of the place, I had water in all my ceiling lights (power got cut off), some looked like fish tanks.

      It was heaven when they got kicked out. So i think I will stay away from airbnb for now lol.

  • [Deactivated] on 10/12/2016 - 14:17

    Wow you really are a bunch of tight-wads.
    I pity you people.

    • phocus on 13/12/2016 - 15:01

      you do realise what website you are on, right?

      • [Deactivated] on 13/12/2016 - 15:32

        Yes it's a bargain website focused on new products from retail
        What do you think it is :a how to scam each other guide/site for little bitches to whine and wring there hands over money

  • Sensiekatie on 10/12/2016 - 15:12

    If your advertised rate is out of whack wth other similar rooms to rent, then they will ask themselves why. Also, as others have said, won't bring a good element in applications. Your arrangement with your friend is your business, not theirs. When you see who Is applying and get down to the nItty gritty of an agreement with someone, you will get a feel for their attitude and Manner. That is when you can clarify points and perhaps offer to include something in that cost, if you feel they are worth being nice to.

    My experience is there are a lot of takers out there who do not give in return. So don't give before you know who you are making the offer to.

  • [Deactivated] on 10/12/2016 - 22:06
    +2

    You're experience is maybe you see people as a commodity.
    Maybe you should see yourself as part of a community..

    • moonflower on 11/12/2016 - 00:48
      +1

      Way to go. I rent out rooms in my house, no bond, rent includes all bills, internet, cleaner & household consumables. Emphasis is on community and harmony (I can't stand nitpicking over the gas bill or who didn't clean the bathroom). Everything is spelled out at beginning of tenancy, so we're all singing from same song sheet. All residents respect what 'reasonable use' is of utilies. I have never had a problem in that regard or rent. Not respecting others/or the harmony/peace of household (which has occurred twice in 7 years) is instant 7-day notice. I'm in WA.

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