When it comes to renting out a room in your house, it's often easier to rearrange every single little detail within the bedroom than it is to know how much to charge for it!  

Yet, you want (and need!) to advertise your room at the right price.  No panic, see our tips below. 

First Things First

The first thing you need to do is define what you are renting out exactly, as some key features of the room will influence the price.

But don't worry, those key features are fairly limited. Let's break it down: 
 

1) Room Type

You are renting out either a single room or a double room.
Be careful with this one. A single or a double doesn't refer to the size of the room but simply to the fact that there is a single or double bed in the room. Therefore a small room with a double bed will be considered a double room; while a large room but with a single bed will be considered a single room.
Therefore, it's always advisable, when space allows it, to put in a double bed as you will be able to get a higher income from it. 

2) The bathroom

The room you rent will come with either a shared bathroom; a private bathroom non ensuite or private ensuite bathroom.
- Shared bathroom refers to the fact that your guest will be sharing it with one or more people.
- Private bathroom non ensuite means that your guest is guaranteed to enjoy a private bathroom just for themselves, however this bathroom is not accessible directly from their bedroom. In fact, it can be anywhere in the house, next door to their bedroom or not even being on the same floor as their room!
- Private ensuite bathroom brings a great deal of comfort and therefore is really appreciated by your guest as they can access their private bathroom directly from their bedroom.

3) Self Contained Unit

The last option is that you have a studio (or granny flat, log cabin etc) on your property. This is a fully self contained unit, including a private kitchen, which therefore will be priced higher than a room.
For more information about granny flats, you can check our blog post here. 

Now that you know exactly what you are renting out, there are a few other factors that will influence the price you charge. Let's take a look at them: 

Market Price

You've heard the saying; 'location, location, location...!' Location is one of the first things renters look at, and it is the most important factor in defining the market price of your property. 

Generally speaking, it means that a small room with a shared bathroom in the heart of the city centre can fetch a higher rent than a large double room with a beautiful ensuite bathroom that's located 15 kms away from the city centre. 

But it's a little bit more complicated than that. There are other factors at play here than just the proximity of the city centre.
The proximity of a university, a business park or the coast line can play just as significant a role in the market price too - it attracts more people who are keen to live there, and that will automatically increase the market price.

As an example, the market price in the city centre of Dublin, is comparable to a room located close to UCD University.  

To find out what the market price is in your area, the best thing to do is check with official or trusted sources, which are usually updated and published every quarter and easily available.  

It's important to keep in mind that by its nature the market price is constantly evolving. It may even change rapidly in certain situations, so make sure to consult data which is no older than 6 months to 1 year maximum.

Bills and WiFi

We always advise to include the cost of bills and WiFi in the rent, and to charge this rental fee on a weekly basis.
It is better to include all utilities upfront, from day one, rather than offering a slightly lower rent but then handing out a separate bill to your guest every 2 months. 

As your guest will be living with you, you obviously won't be able to strictly monitor their exact electricity or gas consumption.  
To calculate the cost of your bills, you just need to check how much you have paid in your bills over the last 12 month period (electricity, gas and WiFi combined) and then divide by 52 (for every week of the year).
You can slightly increase the amount you have found, to cover for the consumption increase due to your future guest.

Keep in mind that by calculating this way the bills will be rounded up throughout the year (even if in fact your bills are probably higher during winter time as opposed to the summer time). This will make it easier for you and your guest.

The Final Calculation

That's it, you are now ready for the final calculation. 

The market price for your room that you have found; which is usually indicated in both for a single and a double room, is an average price for a room with a shared bathroom.

If you offer a private bathroom, you can add €10 per week for a non ensuite private bathroom or €20 per week for an ensuite bathroom.

Then you need to add the weekly bills you have just calculated.

Ta da! You now have your final rental price, which is in line with the current market price!

However, if you can, we always recommend choosing to price your room slightly under the market price, in order to be a little bit more competitive. That way you will have more interest in your room, giving you more choice of potential guests. In our experience, it's worth it!

Hosting Power Price Calculator

If you become a Hosting Power Host, we have great news for you: You will save yourself the hassle of the market research and calculations as we will do it for you! As experts in the rental market, we always have up to date information on rental prices and how to position yourself to attract the right guest.

The other great news is that our services to you as a Host are free, which includes the vetting of your guests too!

We are currently accepting applications for Hosts in Dublin, Cork, Galway and Limerick.To learn more about becoming a Hosting Power Host you can apply today through this short application here

In Summary

Pricing your room can sometimes be an obstacle when you want to rent it out, but not any more! 

It's important to accurately price your room to attract the right guests. We recommend you consider; the type of room and bathroom you have available for rent, the current market price for your area and then factor in your household bills in order to find your ideal price for your room.

As a Hosting Power Host, we will do all the calculations for you so that your room is priced accurately and attracts the right guest too.We are currently recruiting new Hosts in Dublin, Cork, Galway and Limerick. Our services are free and include vetting of your guest.

Are you ready to become a Hosting Power Host?