2 URL's hosted on one domain

Can I be penalized?

[CaribbeanTiger]

Hi, I'm new to WebMastersWorld, and I must admit, I'm not a WebMaster. However I do have a lot of questions.

I currently own 2 information websites which are non-revenue generating. These sites are hosted on the same domain with my web host. Can I be penalized for this practice?

[Susanne]

Welcome to WebmasterWorld! :)
Do you mean: www.url#1.com and www.url#2.com are hosted on the same IP address? In that case, no problem unless the sites are very similar.

Or do you mean: url#1 and url#2 are hosted in separate folders under a completely different URL? Problem! At least if you want to be able to get ranked and found in search engines. Cheers!