By Eric Willden · RoomRentalsHQ

How to Price Rooms in a Shared House (and When to Negotiate)

Room pricing doesn't need to be complicated. Here's how I do it.

Keep rooms about the same

Most of my rooms are priced alike. A noticeably bigger room gets about +$25/mo. A private bath gets about +$100/mo.

Start from your expenses

Add up the house costs and decide what a decent profit looks like. My target is $2K+ profit per house. Work backward to a room price.

Stay close to the market

I aim for about half of what a tenant would pay for a good apartment once they add up rent, electric, internet, water and furniture. They get a furnished room with bills included, and I get a great business model. 😉

Raising rent

When taxes, insurance and bills went up, I raised rents only $25–50. Small raises keep good tenants. Give proper written notice (my lease says 30 days).

When to negotiate

Generally, I don't. I know what my rooms are worth. The exceptions: a great prospect, or several rooms sitting empty. Then I might come down $25–50, just so they feel like they won the negotiation. Lol.