Here is how to live in a place for free without buying, without coming up with the down payment, and best of all is that it’s fairly simple for just about anyone to do…and it’s what I call “Rent Hacking.” Enjoy! Snap/Insta: GPStephan
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c
When it comes to living for free by Rent Hacking, the premise is rather simple: Instead of renting a house just for you, you take advantage of the economies of scale and rent a house larger than you’d normally need, and then sublease the extra bedrooms. When done correctly, oftentimes the rents of the other units will cover your entire lease - allowing you to pretty much live for free, sometimes even turning a small profit. All without owning the property, without coming up with a huge down payment, while still keeping the mobility of being able to rent. And…you’ll get to live in a much larger house than you’d be able to afford on your own.
But, like anything that sounds too good to be true, there are some downsides that I should mention…
The first, and biggest hurdle to overcome is that oftentimes lease agreements include a no-subletting clause. This means that you CANNOT rent out individual rooms or sublet the property without the owner’s prior written consent. So before doing this, make very clear with the landlord with your intentions - and make sure the lease agreement allows a room subletting clause.
The second downside, assuming you’ve found a landlord okay with you subletting rooms, is the liability. Generally if you sign the lease, you claim sole liability for anything that happens to the property - and then it’s up to you to go after your tenants to collect for any damages. This can often be mitigated by collecting a security deposit from your room mates, and drafting a strongly worded lease agreement outlining the responsibilities of your co-tenants. This way, you have some recourse in the event of damage.
The third downside is that you’re responsible for covering the entire amount of rent. When you sign a lease, the landlord doesn’t care who pays and who doesn’t….but the entire amount of rent will need to be paid on time.
The fourth obstacle to overcome is proving the financial ability to pay the lease. Many landlords don’t want to take the gamble of assuming you’re going to find renters to cover your $3800 per month cost if you’re only making $2000 per month…any landlord will know that if you don’t find tenants, you can’t pay and you’re screwed. So qualifying for something like this will often include still renting a home within your means.
And as a fifth downside is that, yes, you’ll need to live with room mates. This isn’t for everyone, and I get that - but it’s par for the course.
Now if you do decide to do this, definitely screen your room mates HEAVILY. You’ll need them to show proof of financial responsibility, give a security deposit, have a decent credit score or come with a co-signer, and you’ll need to draft your own lease agreement between you and the tenant. But overall, rent hacking is a great starter step for those who want to potentially live for free, or greatly reduce their housing costs to save more money - and this would also be great training for moving up to owning multi-family real estate and graduating to “house hacking.”
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c
When it comes to living for free by Rent Hacking, the premise is rather simple: Instead of renting a house just for you, you take advantage of the economies of scale and rent a house larger than you’d normally need, and then sublease the extra bedrooms. When done correctly, oftentimes the rents of the other units will cover your entire lease - allowing you to pretty much live for free, sometimes even turning a small profit. All without owning the property, without coming up with a huge down payment, while still keeping the mobility of being able to rent. And…you’ll get to live in a much larger house than you’d be able to afford on your own.
But, like anything that sounds too good to be true, there are some downsides that I should mention…
The first, and biggest hurdle to overcome is that oftentimes lease agreements include a no-subletting clause. This means that you CANNOT rent out individual rooms or sublet the property without the owner’s prior written consent. So before doing this, make very clear with the landlord with your intentions - and make sure the lease agreement allows a room subletting clause.
The second downside, assuming you’ve found a landlord okay with you subletting rooms, is the liability. Generally if you sign the lease, you claim sole liability for anything that happens to the property - and then it’s up to you to go after your tenants to collect for any damages. This can often be mitigated by collecting a security deposit from your room mates, and drafting a strongly worded lease agreement outlining the responsibilities of your co-tenants. This way, you have some recourse in the event of damage.
The third downside is that you’re responsible for covering the entire amount of rent. When you sign a lease, the landlord doesn’t care who pays and who doesn’t….but the entire amount of rent will need to be paid on time.
The fourth obstacle to overcome is proving the financial ability to pay the lease. Many landlords don’t want to take the gamble of assuming you’re going to find renters to cover your $3800 per month cost if you’re only making $2000 per month…any landlord will know that if you don’t find tenants, you can’t pay and you’re screwed. So qualifying for something like this will often include still renting a home within your means.
And as a fifth downside is that, yes, you’ll need to live with room mates. This isn’t for everyone, and I get that - but it’s par for the course.
Now if you do decide to do this, definitely screen your room mates HEAVILY. You’ll need them to show proof of financial responsibility, give a security deposit, have a decent credit score or come with a co-signer, and you’ll need to draft your own lease agreement between you and the tenant. But overall, rent hacking is a great starter step for those who want to potentially live for free, or greatly reduce their housing costs to save more money - and this would also be great training for moving up to owning multi-family real estate and graduating to “house hacking.”
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
Too much work and drama for the limited benefit.
You'd still have to qualify to rent a place that expensive and hope you have long term tenants who don't cause problems/leave without any notice, etc.
You for got to add all utilities and wifi ect…. for me it's a no deal if I am still having to cover the Utilities and more. That being said. Could you please help me and I return I want to teach you how to help buy free homes and cars and more using IRS forms in the right way!
1200 is crazy for a room
I am not sure why people are saying it’s not fair. You’re giving people the opportunity to rent out a room instead of an entire house. This is a great service. If you can live for free or make a profit this is a wonderful thing
So be a bum.
Buy a house and rent out the bedrooms. Saved everyone the time.
I think I will try this!
Homeless people are smarter than this guy and are actually rent hacking
Your dumb video is called common sense fol
Your brain is hacked
No it's 78%
This doesn't work with everybody because not everyone can get approved to buy a multiroom house. You can have 3, 4 or more tenants, ready to go, but if you don't qualify for a mortgage from either a bank or a lender, you won't be able to get that loan in the first place. Also, why would someone realistically pay 1275 for only a bedroom, when they can pay the same amount, or less, or a studio of their own?
Why would I live with someone at 1275 seesh
Buuut….then you still have to come up with the move-in cost–and often, that's at least a full month's rent, plus security deposit (which could be equal to a month's rent)
Please help with this.. so if I rent a house is it possible for me to rent the other room to cover my rent ?
Okay but how do you get the house?
Step one get friends
Living with strangers? No💀😂
Doesn’t really work when you have a family with a disabled son.
who's going to pay $1200 for a bedroom? ridiculous
Buy a tent and a small solar generator. Boom rent free anywhere 😆
the first one doesnt work when you have pets and two kids
You say you read everything I bet you don't read this and if you do comment back just to prove yourself. You may ask yourself why should I prove myself well if you prove yourself maybe people will take what you said and say and put it to use and Trust will grow, so I will be looking forward to your comment back to this thanks enjoy the video at least.
Lol $25 profit this was good though
Wait who tf is paying 1200 for a bed room?
Just gotta convince my sisters to pay 1k a month
But what about the electricity bill
The problem is that you need at least 2.5 times the income to be the lease holder. Otherwise your friends will only agree to only a fair split
this is a great strategy, but i dont like random people, i like time alone. looks like i will miss out on another great opportunity
4 bedrooms 3 supermodels. Life is good.🤤
What about the utilities expenses you have to factor in….
The only problem with this is that most landlords have a clause in the rental agreement that states “no subleasing” and also requires all people to be on the lease.