Times are tough under the current global economic situation. The rising inflation is making survival near impossible for the common man. Which is why, it naturally makes sense for people to try and develop new ways to save money, while still getting the services they require.

This is where the concept of “Roommate Investor” comes in, where you can search for people to share accommodations with, not only allowing you to save money but also to meet new people. Being a Roommate Investor comes with a lot of perks. It is often overlooked and is shamed upon by working professionals, which is completely wrong, because there is no shame in trying to save your hard-earned money. The goal of this blog post is to debunk the myths of being a roommate investor and to highlight the benefits, so that others can benefit from this concept.

Benefit 1: Saving or eliminating housing cost

The number one expense for any person in the United States is their housing cost. By eliminating your housing cost, you can save 30% or more of your take home income! With your newfound savings, you are technically making the same income as someone who makes well more than you but has rent/or mortgage bills to pay. What makes this so powerful is that you did not have to work 30% harder to save 30% more of your income. Getting a roommate is the easiest most practical way to accomplish this goal.

Benefit 2: Forces you to not be a hoarder

A Hoarder is someone who always must have everything just in case it comes in handy later. However, those items just keep piling on and take up unnecessary space which could’ve been better utilized. Often when we buy or rent homes, we want to fill the empty spaces with “Stuff”. As we get older and make more money, we continue to buy more and more things as space fillers. Before you know it, you are now needing a garage or self-storage unit to house these material items that you will probably never use again. By having roommates, you do not have as much space as you would on your own. You will only be able to provide items for the spaces you have available to yourself. You will not be affected by the “Lifestyle Creep”

Benefit 3: Makes you more Responsible in Managing your Home

Taking on responsibility is very important, especially when you’re managing a home. At times we can get lazy with the management of our space, especially while living on our own. You may see dishes in the sink or something laying around, planning to deal with it later in the day, but it goes without saying that those items will remain in their spot for a few more days because of procrastination. This rarely happens when you have roommates, as now you must worry about others sharing the same space. We found that, with roommates, you begin to develop processes that will make you much more adaptable and allow you to better structure and clean your household. You will develop new habits that will stick with you long after you have roommates.

Benefit 4: Teaches you how to Manage Tenants (Roommates)

Most people have never really had to manage someone unless they have children or pets. What better way to gain an early grasp into management than to manage your own business by having roommates? Not only are you gaining the Knowledge and experience, but you are learning while building for yourself and not someone else. Having roommates in your home will teach you things like, interacting with strangers, having clear boundaries, and managing your time and space efficiently. You will learn when to be stern or lenient. Everyone comes from different situations and backgrounds and each person needs to be handled differently. These and many more important transferable life skills will be acquired by you throughout your roommate investor journey.

Benefits 5: Catapults you into Buying more Properties

There is a solid reason why you found this blog post. The more properties you have, the better your position will be in long term. According to a 2018 Pew Research Center study, nearly 1 in3 U.S. adults live with at least one adult roommate who isn’t their romantic partner or a college student. Nearly half of young Americans graduating college are looking to rent and most likely seeking roommates to mitigate costs. With this being said, having roommates jumpstarts you in the property business by:

1. The 30% savings you get can be a future down payment
2. You make double the amount of income form renting rooms than a whole house, meaning you can qualify for more
3. You look better financially on paper to the banks
4. Your risk/reward tolerance will be much higher due to multiple tenants, allowing you move faster without analysis paralysis