Prairie Village, Kansas--(Newsfile Corp. - July 28, 2022) - HomeRoom, the community-centric rent-by-the-room company, has launched a new model of house sharing. The firm's model makes life easier for tenants with a vetting strategy that ensures that tenants sharing homes share similar interests, likes, and dislikes. This process reduces the likelihood of room-mate conflict and dissatisfaction while at the same time providing access to high-quality accommodation at reasonable prices.
In June this year, inflation rates in the US reached a 40-year record high of 9.1%. The cost-of-living crisis has reached the point where 1 in 4 young adults are living with their parents today. Furthermore, 26% of young adults are living with room-mates to save on rental costs. HomeRoom is taking rent by the room to the next level by providing tenants with shared homes that have comfortably furnished common areas and that are equipped with facilities such as fast WiFi, maid access, garden service, and 24/7 services. In addition to setting out to provide this array of facilities along with affordable rents, HomeRoom regularly hosts community get-togethers. For instance, it has previously put on roller-skating events where members can easily connect to other renters in a casual setting.
The firm's founder, Johnny Wolff, founded the real estate platform in 2018 when he found it challenging to find room-mates in the Bay Area. The firm's carefully planned process brings people with common interests together and provides them with safe and affordable housing. HomeRoom enables room-mates to interview potential room-mates and restricts the maximum number of people in a house to seven.
Along with renters, HomeRoom is also aiming to help landlords that are struggling to contend with the recent crash in the equity market and soaring inflation. This has caused many investors to explore new pathways to try and make their portfolios inflation-proof. Gaining passive income through investment in rental homes continues to be an attractive option.
HomeRoom offers a turnkey solution for real estate investors. The company works with investors on identifying and buying properties in the $200–300,000 range, with investors paying around $50–100,000 upfront. The HomeRoom team draws on its years of expertise to ensure that the property will be in a prime area for rent by the room and will make all the necessary arrangements to set it up for this purpose. HomeRoom aims to help protect investors from the volatility of the current market while providing free property management services, around 5% cash-on-cash returns, and a 25% return on investment.
At the end of the initial lease term, investors can choose to renew, opt out, or sell to other potential investors who might be interested in the properties. HomeRoom has also started a fund for this purpose, in which accredited retail investors can participate.
Commenting on the company's innovative approach to rent by the room, Michael Tich, the co-founder of HomeRoom, concluded, "We get a lot of joy from putting people in a house together who might be new to the city and nervous about starting a new job, and then we get to see them having fun and forming lasting friendships. It is the community-building aspect that excites me most about running this company. There are many challenges to renting by the room, but we have tried to solve the majority of them through our unique model, with strategic add-ons like maid service and garden service, which helps to ensure that dirty dishes and yard-work responsibilities no longer lead to arguments. We even have a counselor on retainer to resolve any issues - but people who are looking for room-mates are typically willing to connect with others, so this is usually not necessary. The fact that sales grew by 300% in 2021 attests to the effectiveness of our model."
Media Contact:
Name: Michael Tich
Email address: info@livehomeroom.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/132203
